Together with exacting a devastating human toll in terminology of illness and death, the coronavirus pandemic is actually causing economic destruction. Many businesses are actually hurting because economies around the world have mainly been shut down to help slow the spread of COVID 19.
Several companies, nonetheless, are experiencing increased demand for some or perhaps almost all of their services and products due to the crisis. But that alone is not enough of a very good reason to purchase these businesses, at least not for the long haul. Investors focused on the long run must favor the stocks of companies that seemed poised to get a sustainable boost from the pandemic, or even at least have other catalysts for growth.
- Zoom Video Communications (NASDAQ:ZM) $44.3 billion 374 32.5% 133% N/A N/A
- Teladoc Health (NYSE:TDOC) $14.3 billion N/A 20% 131% N/A N/A
- Amazon.com (NASDAQ:AMZN) $1.2 trillion 83.9 32.4% 30.4% 1,580% (13.9%)
- DocuSign (NASDAQ:DOCU) $19.2 billion
- Domino’s Pizza (NYSE:DPZ) $14.4 billion 33.6 11.9% 25.3% 2,730% (34.6%)
- Netflix (NASDAQ:NFLX) $187 billion 66.3 35.9% 31.3% 2,880% 70.7%
- Everbridge (NASDAQ:EVBG) $4.1 billion N/A 559% 52.7% N/A N/A
- FTI Consulting (NYSE:FCN) $5.0 billion 24.2 14% 21.7% 224% (11.9%)
Six cultural distancing stocks The very first 6 companies on the list — Zoom via Netflix — are actually benefiting from the lockdown orders as well as cultural distancing measures which were instituted across most of the world, including most U.S. states. Many of these actions aimed at stemming the spread of COVID 19 had been put in place in March, following the World Health Organization’s (WHO) declaration that the COVID-19 outbreak was now officially a pandemic.
Zoom Video Communications’ other tools and videoconferencing are allowing many people who usually work in other settings and places of work to more effectively work from the homes of theirs while in the pandemic. Moreover, its offerings are allowing folks to hold virtual community events ranging from parties to funerals. Its business ought to get a sustainable increase coming from the crisis. When companies feel that Zoom’s products are increasing the efficiency of their workforces as well as their bottom lines, they will continue using them after the pandemic is over.
Zoom stock‘s valuation should have a comment. The inventory is actually priced at a sky high 374 times Wall Street’s forward earnings estimate. There is no doubting the stock is ultra-pricey and a lot of future growth is already priced in. That said, there’s great reason to believe that the inventory is not fast as expensive as it appears. Analysts have been accurately significantly underestimating Zoom’s earnings power. In three of the 4 quarters since its initial public offering (IPO) last April, the company hasn’t only beat the consensus earnings appraisal, but demolished it.
Teladoc is actually the leader in telahealth services. Its services are enabling patients to essentially “visit” the healthcare providers of theirs. There is much to love at any moment about this better method of obtaining healthcare, but telahealth has been priceless during the pandemic. As soon as a lot of people have the convenience of telehealth, it appears a very good choice that they will be unlikely to retturn to in person healthcare visits unless necessary.
Tech giant Amazon‘s e-commerce industry is booming, driven by a surge in internet shopping for important products that began in March. The pandemic almost certainly provided a major boost to Prime club membership since such a membership allows consumers to get free, faster delivery. This bodes well for the long term since Prime members spend much more cash than nonmembers on the company’s site.
As the top video streaming provider, Netflix is actually benefiting from the pandemic driven rise in streaming. Many folks are viewing movies and TV more since they are currently home more frequently than usual. Furthermore, movie theaters across the country and in various other countries around the world are shut, that is another critical factor driving demand for streamed written content.
DocuSign is a digital document signing specialist. The company’s services make it possible for guys to conduct transactions remotely that formerly needed to be completed in person. Its offerings save folks & organizations time and money and must prove more popular then ever.
Food delivery is much more popular than ever since restaurants are temporarily shuttered and it’s tough in several parts of the country to order groceries online. Restaurants might struggle for a long time to win back customers, a lot of whom will be suspicious of being loaded in way too firmly with other diners. This may be a boon to Domino’s and other businesses focused on food delivery.
2 crisis management as well as mitigation stocks Everbridge’s platform provides communications plus applications which help companies as well as government entities keep individuals protected and their operations running during vital occasions. The software-as-a-service (SaaS) organization recently launched pandemic related services.
FTI Consulting is a leading global economic and management consulting firm. It focuses on corporate finance and restructuring, forensic and litigation consulting, economic consulting, technology, and strategic communications. It has a COVID 19 response team that is assisting clients evaluate as well as mitigate the pandemic‘s effect on their stakeholders.
Profitability note Everbridge and Teladoc aren’t profitable and they’re not supposed to be profitable in the next 12 months. That is why the stocks of theirs have no advanced price-to-earnings ratio in the table. So these stocks aren’t good fits for investors that just desire to invest in companies that are currently rewarding or at least on the verge of profitability.
Should you spend $1,000 in Netflix, Inc. right now?
Before you consider Netflix, Inc., you’ll be interested to pick up that.
Investing legend and Motley Fool Co founder Tom Gardner just revealed what he thinks are the 10 most effective stocks for investors to buy right now… as well as Netflix, Inc. wasn’t one of them.
The online investing service he runs, Motley Fool Everlasting Stocks, has beaten the stock market by more than 3X.* And right now, he believes there are ten stocks that are better buys.