4 Ways For Investors To Play CES 2018

One of technology's biggest events, CES 2018, kicked off in Las Vegas on Monday. Investors looking for a way to capitalize on the event may want to consider these four picks, courtesy of KeyBanc Capital Markets.

The Analysts

KeyBanc's Alex Kurtz and Steve Enders.

The Thesis

One of the biggest themes of CES 2018 is the "significant adoption of hybrid and multi-cloud enabling technologies," and there are four names that stand out, according to KeyBanc. They are: 

• Red Hat Inc RHT: The biggest catalyst to support Red Hat's near-term billings growth is Linux share gains, augmented by average selling price growth from OpenShift.
• VMware, Inc. VMW: The case for owning VMare's stock can be found in the company's multiple paths to drive 10-percent license growth and superior cash flow generation through ESX, vSAN and NSX.
• Pure Storage Inc PSTG: Pure Storage is "turning the corner" on free cash flow, as its sales force reaches a maturity that will improve the company's contribution margin.
• CommVault Systems, Inc. CVLT: CommVault is a leader in data visibility across on-premise and hybrid cloud deployments, which typically boast higher contribution margins.

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