11 Best Data Storage Stocks to Invest in According to Analysts

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1. Data Storage Corp. (NASDAQ:DTST)

Average Upside Potential as of March 28: 143.24%

Number of Hedge Fund Holders: 1

Data Storage Corp. (NASDAQ:DTST) provides data storage and management solutions such as secure cloud storage, data protection, and recovery services. These ensure data integrity and accessibility for businesses across various sectors. Its offerings include technologies that range from offsite data vaulting to real-time data replication, which emphasize resilience and business continuity.

The company’s data storage business is primarily operated through its CloudFirst subsidiary which focuses on recurring subscription revenue from its enterprise infrastructure platform. It provides multi-cloud data storage solutions like hosting, disaster recovery, and IT automation. The subsidiary integrates with major cloud providers like AWS, Microsoft Azure, and Google Cloud. This shows the company’s expertise in hybrid and multi-cloud environments.

CloudFirst operates across 11 data centers in the US, Canada, and the UK. Earlier in Q3 2024, CloudFirst generated $5.5 million in revenue. The revenue is projected to reach over $20 million in recurring revenue for 2025. This growth is supported by a client renewal rate of over 90%. In the UK, CloudFirst has expanded its data storage capabilities through partnerships like that with Megaport. This partnership uses CloudFirst’s Direct Connect service to offer secure and high-performance connectivity to cloud providers. It has also partnered with a UK-based data center provider under the name of Pulsant to extend its services to IBM customers.

While we acknowledge the growth potential of DTST, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DTST but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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