Benchmarks faltered on Jun 18 as investors grew concerned about the rise in new coronavirus cases in some of the states with the gradual reopening of the economy.Rise in new cases hasincreased possibilities of a new round of lockdown measures.
In the United States, nearly 10 states have reported a record number of new COVID-19 cases and Florida could be the next epicenter of the pandemic. The state reported 3,207 additional coronavirus cases on Jun 18, the largest single-day count in Florida since the start of the pandemic. The increase in cases is a concern as more than 75% of Florida's adult intensive care unit beds are occupied at present.
Other states that have recorded spike in cases are Alabama, Arizona, California, Nevada, North Carolina, Oklahoma, Oregon, South Carolina and Texas.
Work-from-Home Stocks Trend North
Due to the resurgence in cases, companies issued extended work-from-home orders. What drives this work-from-home trend more than the pandemic is productivity. With performance-monitoring tools and data security in place, technology firms have been performing well during this global health scare. Firms have reported that employees remain logged in for more hours and the deliverables have not been impacted. This has led companies to extend remote working option.
Jack Dorsey, CEO of Twitter and Square, has asked employees to work from home forever while Google and Facebook notified employees that they can be in work-from-home mode until the end of 2020.
Now, with companies forced to conduct their businesses online, there is heightened demand for video conferencing, cloud computing, data security and related stuff. Technology firms are likely to reap the benefits of this extended stay-at-home orders.
Online Retailers Move Higher
The coronavirus pandemic has weighed heavily on brick-and-motor stores. Several discretionary product stores have been shut down for nearly three months now and cost a huge number of jobs. However, online retailers have been faring well during this time. Non-store sales jumped 9% in May and rose 30.8% from May 2019.
Stores offering contactless deliveries, curbside pickups and allowing customers to pay online have been performing well even during the pandemic. In fact, brick-and-mortar retailers that have gone online during this period have seen a surge in demand.
According to data by eMarketer, Walmart surpassed eBay in terms of share in U.S. e-commerce sales for the first time in May. In the said month, Walmart’s total e-commerce sales share was 5.8%, while eBay held 4.5%. In fact, big box retailers like Target and Costco have accelerated their e-commerce businesses and are now in the top 10 list of e-commerce sales. Amazon still remains the leader with a bigger margin of 38% sales.
Per eMarketer estimates, e-commerce sales in 2020 are expected to rise 18%, higher than the previous forecast of 13% growth.
5 Stocks to Buy
Given the present scenario, it is prudent to invest in these five stocks that are into e-commerce and support remote working.
Zoom Video Communications, Inc. ZM provides a video-first communications platform. The company’s expected earnings growth rate for the current year is more than 100% compared with the Zacks Internet - Software industry’s projected earnings growth of 2.3%.
The Zacks Consensus Estimate for its current-year earnings has climbed more than 100% over the past 60 days. Zoom Video sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dropbox, Inc. DBX provides a collaboration platform. The company’s expected earnings growth rate for the current quarter is 70% against the Zacks Internet - Services industry’s projected earnings decline of 16.3%. The Zacks Consensus Estimate for its current-year earnings has moved up 4.3% over the past 60 days. Dropbox sports a Zacks Rank #1.
JD.com, Inc. JD operates as an e-commerce company and retail infrastructure service provider. The company’s expected earnings growth rate for the current quarter is 15.2% against the Zacks Internet - Commerce industry’s projected earnings decline of 42.7%. The Zacks Consensus Estimate for its current-year earnings has moved up 49.4% over the past 60 days. JD.com sports a Zacks Rank #1.
Wayfair Inc. W is an e-commerce business, offering furniture, décor, housewares, and other home goods. The company’s expected earnings growth rate for the current quarter is more than 100% against the Zacks Internet - Commerce industry’s projected earnings decline of 42.7%.The Zacks Consensus Estimate for its current-year earnings has moved 51.9% up over the past 60 days. Wayfair carries a Zacks Rank #2 (Buy).
Atlassian Corporation Plc TEAM provides project tracking, content creation and sharing, and service management products. The company’s expected earnings growth rate for the current year is 26.7% compared with the Zacks Internet - Software industry’s projected earnings growth of 2.3%. The Zacks Consensus Estimate for its current-year earnings has moved 2.8% up over the past 60 days. Atlassian carries a Zacks Rank #2.
5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.
See the 5 high-tech stocks now>>
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