Companies continue to have growing data storage needs, and cloud services provide a great way to ensure data can be accessed securely while also from anywhere.
A number of companies play to this trend, with everything from data centers themselves to companies that offer web hosting services. But the entire technology still remains locked in a world of physical hardware to make it all happen.
That fact plays well to a number of hardware players. Memory chip company Micron (MU) has been building up chips for its data hosting division, and the results are that the company has continued to beat on earnings and its outlook going forward.
Yet thanks to the recent market selloff, shares are still down slightly over the past year. With revenue now up 33 percent year over year and earnings up over 180 percent, it’s likely that shares will continue to trend higher in time.
Action to take: Investors may like shares for the long haul, as the stock trades at just over 8 times forward earnings, and even pays a modest 0.2 percent dividend with room for future growth.
For traders, the longer-term uptrend in the stock is likely to continue as long as earnings continue to grow. The July $95 call, last going for about $4.00, looks like an inexpensive way to bet on a move higher in the coming months.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.