SanDisk Corporation (SNDK), NetApp Inc. (NTAP), Teradata Corporation (TDC): Three Stocks to Profit From Data Growth

Despite weak performance in Americas, future looks bright

Teradata Corporation (NYSE:TDC) posted 4% revenue decline year-over-year in the first quarter of 2013. This was due to decrease in the number of orders, which were worth more than $5 million. The value of total orders declined $69 million year-over-year in the first quarter of 2013. Overall IT budgets were down, reducing large IT spending. The demand is expected to rise by 13% year-over-year in the second half of this year, whereas it declined 12% year-over-year in the first half of the year.

Teradata Corporation (NYSE:TDC) rolled out “Teradata portfolio of Hadoop” in June 2013. Hadoop is a Big Data, open source software framework that can manage large data at significant speed. It will integrate with Teradata Corporation (NYSE:TDC)’s Aster Big Data, which it acquired in 2011. The integration will help customers manage large amounts of unstructured data at a high speed and relatively low cost. A number of customers, including General Motors, use Hadoop in conjunction with Teradata Corporation (NYSE:TDC)’s technology.

Companies pass further work completed on Hadoop on to Teradata’s data warehouse, thus increasing business for Teradata Corporation (NYSE:TDC). Along with the benefits, the integration of Hadoop can deliver 100% demand growth for Aster Big Data this year.

Conclusion

Overall, data storage companies provide an excellent opportunity for investors to gain in the future. The growth of SSDs has revolutionized the industry, and SanDisk Corporation (NASDAQ:SNDK) is taking full advantage. Companies migrating towards advanced network storage devices will provide opportunity to NetApp Inc. (NASDAQ:NTAP). Revenue from large orders is set to pick up for Teradata Corporation (NYSE:TDC) in the second half of 2013, and the integration of Hadoop should increase volume in the future.

Therefore, I recommend buying all these stocks.

The article 3 Stocks to Profit From Data Growth originally appeared on Fool.com and is written by Madhukar Dubey.

Madhukar Dubey has no position in any stocks mentioned. The Motley Fool recommends Teradata. Madhukar is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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