In a recent analysis, we compiled a list of the 10 Best Big Data Stocks to Buy Now, spotlighting Accenture plc (NYSE:ACN) and its position relative to its big data contemporaries.
The global big data market is on a remarkable upward trajectory, anticipated to reach a staggering $103 billion by 2027, more than doubling its footprint from 2018 levels. This astronomical growth is largely driven by the burgeoning reliance on data-driven decision-making, operational optimization, and the discovery of new revenue streams. Particularly noteworthy is the software segment, projected by Statista to dominate 45% of the market by 2027. However, the massive volume, high velocity, and wide variety of big data present substantial challenges. Traditional data processing methodologies are increasingly inadequate for managing the ever-expanding and interlacing data sets emerging from mobile data traffic, cloud computing, and the confluence of AI and IoT technologies. These elements have elevated big data to a vital asset across diverse industry landscapes. As data ecosystems evolve, advanced analytics methods such as predictive analytics and data mining have become indispensable for extracting actionable insights from these vast reserves of information.
The proliferation of IoT has significantly increased the number of connected devices, consequently generating vast quantities of data that necessitate sophisticated big data solutions for efficient processing and analysis. Cloud computing complements the big data landscape by providing scalable, cost-effective storage and processing capabilities, enabling businesses to manage large volumes of data seamlessly. Technological advancements are continually streamlining the management and analysis of extensive datasets, democratizing the accessibility and practicality of these processes. This evolution facilitates a trend towards data-driven strategies, allowing companies to leverage insights for informed decision-making, operational efficiency, and competitive advantage. Moreover, big data analytics unveils predominant patterns and consumer trends, spurring innovation and facilitating the development of products and services that cater to dynamic market demands, underscoring big data’s pivotal role in today’s competitive arena.
Investment in big data technologies is further propelled by stringent data privacy and security regulations. Compliance with frameworks like Europe’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) in the U.S. is becoming non-negotiable for businesses. These regulations necessitate robust data management practices, urging companies to adopt advanced big data solutions to ensure data privacy and security. Comprehensive measures like secure storage and rigorous data privacy protocols foster trust among consumers and stakeholders. Moreover, the imperative for robust data governance frameworks accelerates the uptake of sophisticated big data technologies, which facilitate effective data management encompassing data lineage tracking, maintenance of data integrity, and regular audits. Emphasis is placed on integrating encryption, anonymization, and real-time monitoring tools to avert data breaches and unauthorized access. Continuous investment in big data technologies is indispensable for businesses aiming to meet evolving compliance requirements, thus fostering market growth.
A report by Verified Market Research highlights that North America is set to maintain a leadership position in the big data market, propelled by key industries such as finance, healthcare, and e-commerce. In finance, big data analytics is crucial, enabling banks, investment firms, and insurance companies to gain deep insights into customer behavior, detect fraudulent activities, and assess risk. By scrutinizing extensive datasets, including transaction histories, market trends, and demographics, financial institutions can derive patterns and anomalies facilitating informed decision-making and risk management. Predictive analytics models further refine forecasts of market trends, enhance investment strategies, and optimize portfolio management, contributing to heightened profitability and competitive edge in finance.
In the healthcare sector, big data analytics significantly enhances patient care, reduces costs, and propels medical research. Healthcare providers utilizing big data can analyze electronic health records, medical imaging, and genomic data to customize treatment plans, diagnose conditions with greater accuracy, and forecast patient outcomes. Population health analytics aids healthcare organizations in identifying high-risk groups, optimizing resource allocation, and implementing preventive measures. Additionally, big data integration supports real-time health monitoring, enabling timely interventions and improved overall patient outcomes. Pharmaceutical companies benefit from big data by accelerating drug discovery, optimizing clinical trials, and developing personalized medicines, fostering innovation and progress in medical science.
With such a promising outlook for the big data market, investors are vigilantly focusing on companies poised to harness this tremendous growth potential. This article delves into the top big data stocks currently deemed the finest, examining those best positioned to capitalize on the sector’s dynamic opportunities.
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Accenture plc (NYSE:ACN) stands out with an average analyst price target of $351.82, suggesting a potential upside of 7.62%. On August 2, Accenture enhanced its infrastructure and net-zero project management capabilities by acquiring BOSLAN, a Spanish engineering firm specializing in renewable energy projects. This acquisition, which adds over a thousand professionals from Spain and Brazil to Accenture’s Industry X division, bolsters the company’s capacity to deliver AI-driven net-zero infrastructure solutions. The move is strategically aligned with the increasing clean-energy transition spending in Europe, amounting to $341 billion in 2023. BOSLAN’s expertise is anticipated to strengthen Accenture’s global infrastructure services and assist clients in achieving net-zero goals. This acquisition forms part of Accenture’s broader strategy to expand offerings in AI and large-scale capital projects. The company also reported robust Q3 fiscal 2024 results, posting $16.5 billion in revenue and an improved operating margin of 16.4%. For Q4, Accenture projects revenue growth of 2% to 6% in local currency.
Despite recent challenges in the IT services sector, Accenture remains formidable, especially with recent positive responses to its growing AI bookings. As we progress towards 2025, growth comparisons are likely to improve, bolstering Accenture’s market position.
While Accenture ranks 8th on our list of the best big data stocks to buy, we acknowledge the potential of certain AI stocks to deliver higher returns within shorter timeframes. Investors seeking more promising AI stocks trading at less than five times their earnings might find our report on the cheapest AI stock worthwhile.
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Disclosure: None. This article is originally published at Insider Monkey.