11 Best Predictive Analytics Stocks to Buy According to Analysts

6. Cloudflare Inc. (NYSE:NET)

Analysts’ Upside: 27.35%

Number of Hedge Fund Holders: 55

Cloudflare, Inc. (NYSE:NET) is a cloud-based cybersecurity and website management company that also provides routing and developer security services. According to the company, its data pipeline has reached exceptional scalability, processing up to 706 million events per second by December 2024, indicating a 100x increase over 2018. This massive data flow feeds the company’s key services, such as logs, analytics, billing, and machine learning models for bot identification.

On February 7, TD Cowen analyst Shaul Eyal raised the price target for Cloudflare, Inc. (NYSE:NET) shares to $162 from $130, keeping a Buy rating on the stock. The adjustment followed Cloudflare’s strong performance in the fourth quarter of 2024, which saw a 27% growth in revenue and a 47% increase in clients with an annual spending of more than $1 million. The company also had a higher deal closure rate, experienced shorter sales cycles, and raked in its fifth consecutive quarter of double-digit year-over-year improvement in sales productivity. Eyal also stated that Cloudflare’s improved sales productivity and increase in quota-carrying account executives is projected to generate faster growth.

Baron Fifth Avenue Growth Fund stated the following regarding Cloudflare, Inc. (NYSE:NET) in its Q4 2024 investor letter:

“We took advantage of recent inflows to add to several of our existing holdings, in which our relative conviction level and attractive valuations warranted an increase in position sizes. Our largest addition was Cloudflare, Inc. (NYSE:NET), which offers enhanced security and performance for websites, apps, and software as a service. The company continues reporting solid quarterly results with 28% year-on-year revenue growth and 14.8% non-GAAP operating margins, which increased 210bps year-on-year. A double-digit year-on-year increase in sales productivity has started to benefit EMEA and APAC growth rates. Customer additions were also robust and remaining performance obligations were well ahead of expectations, up 39%. In addition, the company announced the hiring of CJ Desai as President of Product & Engineering, a well-regarded executive that helped build ServiceNow into one of the best software businesses of all time – and a large position in the portfolio. Our relative conviction in Cloudflare warranted adding to our position, given the company’s visionary management team, and stacking S curves or markets that it can address with its platform as it helps companies modernize their networking infrastructure.”