Digital transformation shows no signs of slowing. And consistent innovations in AI and IoT are expected to accelerate this trend. Therefore, we think it could be wise now to scoop up quality stocks Accenture (ACN) and Cognizant (CTSH), which are witnessing rising demand for their digital-transformation solutions. Let’s discuss. Innovations in artificial intelligence (AI) and the Internet of Things (IoT) have motivated several organizations to spend significantly on their digital transformation over the past couple of years to make their operations more efficient. The COVID-19 pandemic accelerated this trend as organizations relied increasingly on digital solutions to stay afloat. With COVID-19 cases rising again, the pace of digital transformation is not expected to slow anytime soon.
According to a Research and Markets report, the global digital transformation market is expected to reach $1.56 trillion in 2028, growing at a 16.1% CAGR. Furthermore, investors’ interest in digital transformation stocks is evident in the VanEck Vectors ETF Trust - VanEck Vectors Digital Transformation ETF’s (DAPP) 5.4% returns over the past six months.
So, we think it could be wise to bet on fundamentally sound digital transformation stocks Accenture plc (NYSE:ACN) and Cognizant Technology Solutions Corporation (NASDAQ:CTSH).