Play the New Era of Jobs With These 4 Gig Economy Stocks

The global work culture has been changing for some time now, and the COVID-19 pandemic has further transformed it. While many still dream of a high-paying job and climbing the career ladder, the pandemic has drastically changed the mindset of millions.

With work-from-home culture becoming a new norm, a growing number of people want to take more control of their time. People today want more flexible timing for work. This has seen more workers join the gig economy, making related stocks like Airbnb ABNB, Crexendo CXDO, Dropbox DBX and TrueCare TRUE more appealing.

Gig Work Gaining Popularity

The gig economy concept has existed for a while now, but its popularity has grown only lately. The word gig was coined by Tina Brown, the editor of The New Yorker, in 2009 to describe a bunch of free-floating projects, freelance work, part-time projects and consultancy services while they transacted in a digital space.

Before that, since 1940, there was the traditional workplace culture that revolved around 9-5 work based on a single job. Although gig jobs, side hustles or part-time jobs were available prior to 2020, people preferred work stability over flexibility.

However, since the pandemic broke out, the traditional workplace has undergone a striking change. People are craving more for a relaxed work culture where there is flexibility in time and the way of work, making gig economy hugely appealing.

New Work Culture Driving Gig Economy Stocks

The gig economy was popular even before the pandemic. A CNBC report published in February 2020, just before the COVID-19 outbreak, stated that according to an ADP Research report, the gig economy had swelled by 6 million heads since 2010. The pandemic only further ballooned the number.

Millions lost their jobs or got furloughed following lockdowns. This compelled many to take up part-time jobs to run their household. At the same time, it also made them realize the time flexibility that such jobs offered.

Besides, the pandemic has made Americans less social. They are working and learning from home, shopping online, and ordering groceries and food through apps. So, they literally don’t need to step out of home unless required.

Ride-hailing services like Uber Technologies (UBER) and Lyft (LYFT), and other home rentals were hit badly but as the economy reopened, they started to bounce back. That’s why these gig economy stocks are likely to play an important role in the coming days.

Our Choices

We have selected four gig stocks that are likely to benefit in the near term as flexible work hours take precedence over stability.

Airbnb, together with its subsidiaries, operates a platform for stays and experiences to guests worldwide. ABNB provides a marketplace model that connects hosts and guests online or through mobile devices to book spaces and experiences. Airbnb primarily offers private rooms and luxury villas.

Airbnb’s expected earnings growth rate is 95.9% for the current year and more than 100% for next year. Shares of ABNB have gained 13.8% in the past six months. Airbnb sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Dropbox, headquartered in San Francisco, is a service company. DBX offers a platform that enables users to store and share files, photos, videos, songs and spreadsheets.

Dropbox’s expected earnings growth rate for the current year and next year are 60.2% and 6%, respectively. The Zacks Consensus Estimate for current-year earnings has improved 3.5% over the past 60 days. Shares of DBX have gained 12% year to date. Dropbox has a Zacks Rank #2.

TrueCar engages in developing and publishing an online automotive information and communications platform. TRUE operates its company-branded platform on TrueCar.com. TrueCar enables users to obtain market-based pricing data on new and used cars, as well as to connect with its network of TrueCar certified dealers.

TrueCar’s expected earnings growth rate for next year is 100%. Shares of TRUE have gained 6.4% in the past seven days. TrueCar currently has a Zacks Rank #2.

Crexendo operates as an ecommerce application service provider, enabling companies to extend their business online. CXDO involves in the sale of StoresOnline software licenses; and provision of search engine optimization, search engine management, conversion rate optimization, website design and development, and web-hosting services. Crexendo sells and markets its products and services in the United States, Canada, the United Kingdom, Australia, New Zealand, and Singapore.

Crexendo’s expected earnings growth rate for next year is 50%. The Zacks Consensus Estimate for current-year earnings has improved more than 100% in the past 60 days. CXDO has a Zacks Rank #2.

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