Data generation through various devices is growing rapidly, aiding the growth of the big data market. Also, cloud computing has made the adoption of big data solutions easier and more affordable. However, big data management company Palantir (PLTR) doesn’t look sufficiently fit to capitalize on the industry tailwinds. Therefore, we think it could be worth betting on SAP (SAP) and International Business Machines (NYSE:IBM) instead. These two stocks possess sound fundamentals and are rated ‘buy’ in our proprietary rating system. So, let’s discuss.Insights and predictive analytics solutions derived from big data tend to create smart processes and smarter organizations. Hence, organizations are increasingly adopting big data solutions. Cloud computing has made the adoption of big data solutions easier and more affordable. Also, the widening of the business analytics market and the emergence of IoT are powering the growth of the big data market. The global big data market is expected to reach $268.4 billion by 2026, registering a 12% CAGR.
Big data management and analytics software company, Palantir Technologies Inc . (NYSE:PLTR), generated a 35.5% year-over-year increase in revenue to $392.15 million in its last reported quarter. However, its stock has declined more than 15% in price since the company reported its third-quarter results on November 9. Citi analyst Tyler Radke said that PLTR’s decelerating growth "came into center view" in the third quarter, with weakness in both commercial and government. The stock is currently trading below its 50-day and 200-day moving averages, indicating a downtrend. Furthermore, analysts expect its EPS to decline 25% in the current year.
Therefore, we think fundamentally sound big data stocks SAP SE (DE:SAPG) (SAP) and International Business Machines Corporation ( IBM ) could be better picks to cash in on the industry’s growth. These stocks are rated 'buy’ in our proprietary rating system.