The 'New Normal' Amid Coronavirus Perks Up These 6 Stocks

Fears of a second wave of coronavirus is pronounced, with several U.S. states including California and Texas reporting higher daily incidences of the infection post reopening of the economy. Moreover, a second wave of the virus has been reported in China’s capital Beijing and Northern Germany.

To date, the pandemic has infected more than $2 million people in the United States, with the death toll rising to 117,717, per John Hopkins university data. Globally, more than 8 million people have been infected by the virus.

These latest developments have quashed hopes of swift economic recovery from the coronavirus. Notably, the Dow Jones Industrial and the S&P 500 declined 0.65% and 0.36% to close at 26,119.61 and 3,113.49, respectively, on Jun 17.

Sustainable Cohabitation: Need of the Hour

Coronavirus has not only ravaged the global economy but has also altered lifestyles. Although measures like lockdowns and quarantines have helped in somewhat flattening the curve, it’s almost impossible to guess how long the pandemic will last in absence of an effective vaccine and treatment.

Per a study by researchers from Harvard University’s T.H. Chan School of Public Health, sporadic periods of social isolation might be required through 2022 in the United States to keep tab on the number of patients falling severely ill, thereby easing things for the healthcare system.

Hence, social distancing, wearing of masks and continuous sanitization of hands become essential to keep safe. Moreover, work from home, web-based learning and remote health diagnosis trends are likely to continue for a long time.

Further, changing consumer behavior is expected to boost e-commerce, contactless payment and delivery.

Stay-at-home has now become the new normal as we are learning to live with the virus for a significant stretch. Here we pick six stocks that are well-poised to benefit from this trend. Apart from having solid fundamentals, these stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Year-to-Date Performance

Activision Blizzard’s (ATVI) popular franchises including Call of Duty, Overwatch, Candy Crush Saga and Candy Crush Friends Saga are expected to attract home-confined gamers. Higher in-game spending is expected to drive net bookings and the top line of this Zacks Rank #1 company in the near term.

The Zacks Consensus Estimate for its 2020 earnings is pegged at $2.77 per share, having been revised 11.7% upward over the past 60 days. Earnings are expected to increase 23.1% from the figure reported in the previous year.

Chegg CHGG is benefiting significantly from the coronavirus-induced online-learning wave. As schools and colleges are likely to remain shut for a long time, the ongoing momentum is expected to continue for this currently Zacks #1 Ranked stock.

The consensus mark for its 2020 earnings is pegged at $1.21 per share, having been raised 15.2% up in the past 60 days. Earnings are expected to surge 33% from the figure reported in the previous year.

eBay EBAY is gaining on strong momentum across its managed payment offerings, which bodes well for its gross merchandise volume. Additionally, strength in promoted listings is encouraging.

Further, this Zacks Rank #1 company’s initiatives toward enhancing seller experience by offering innovative seller tools and delivering better buyer experience by building product catalogs utilizing structured data hold promise.

The consensus mark for eBay’s 2020 earnings has risen 14.6% to $3.45 per share over the past 60 days, suggesting growth of 22% from the year-ago reported figure.

Fortinet FTNT is benefiting from rising cyber-attack risks that are propelling demand for its FortiMail platform that can be used to block specific file types, containing certain keywords, such as those related to coronavirus.

FortiMail is also capable of sending attachments to the FortiSandbox solution to check whether the file displays any malicious activity.

The Zacks Consensus Estimate for this Zacks Rank #1 company’s 2020 earnings stands at $2.81 per share, having moved 8.1% north over the past 60 days. It suggests growth of 13.8% from the year-ago reported figure.

Zoom Video Communications ZM is riding on the coronavirus-induced work-from-home and online-learning trend. Notably, this Zacks Rank #1 company’s customer count (with more than 10 employees) surged 354% year over year to 265.4K in first-quarter fiscal 2021. Moreover, the company had 769 customers (with more than $100,000 in trailing 12-month revenues), up 90% year over year.

The consensus mark for its fiscal 2021 earnings is pegged at $1.18 per share, having been raised 174.4% in the past 30 days.

Netflix’s NFLX solid content portfolio is a key catalyst. Courtesy of its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content and an expanding international footprint, this Zacks Rank #2 company is hugely benefiting from the pandemic.

The consensus mark for 2020 the company’s earnings is pegged at $6.40 per share, up 6.3% over the past 60 days and suggesting 55% growth from the prior-year reported number.

Zacks’ Single Best Pick to Double

From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.

This young company’s gigantic growth was hidden by low-volume trading, then cut short by the coronavirus. But its digital products stand out in a region where the internet economy has tripled since 2015 and looks to triple again by 2025.

Its stock price is already starting to resume its upward arc. The sky’s the limit! And the earlier you get in, the greater your potential gain.

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eBay Inc. (EBAY) : Free Stock Analysis Report
 
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