Along with exacting a devastating human toll in terms of illness and death, the coronavirus pandemic is actually causing economic destruction. Many organizations are actually hurting because economies around the world have mostly been shut down to help slow the spread of COVID-19.
Some companies, nonetheless, are experiencing increased demand for a number of or even all of their products and services because of the crisis. But that by itself isn’t enough of an excellent reason to purchase these companies, at least not for the long haul. Investors centered on the long run should favor the stocks of businesses that seemed poised to obtain a renewable boost from the pandemic, or at least have other catalysts for growth.
Eight coronavirus stocks: main stats
- 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 first 6 organizations on the list — Zoom through Netflix — are benefiting from the lockdown orders and cultural distancing measures that have been instituted across much 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 generally work in other settings and workplaces to better work from the homes of theirs during the pandemic. Additionally, its offerings are enabling folks to hold virtual social events ranging from parties to funerals. Its business should get a renewable boost coming from the crisis. If companies feel that Zoom’s products are increasing the effectiveness of their workforces as well as their bottom lines, they’ll continue using them after the pandemic is more than.
Zoom stock‘s valuation needs to have a comment. The stock is actually valued at a sky-high 374 times Wall Street’s forward earnings estimate. There’s no questioning the stock is ultra-pricey and a great deal of potential growth is presently valued in. That said, there is great reason to think the stock is not brief as pricey as it seems. Analysts have been consistently significantly underestimating Zoom’s earnings power. In three of the four quarters after the initial public offering of its (IPO) last April, the company hasn’t only beat the consensus earnings appraisal, but demolished it.
Teladoc is the leader in telahealth services. Its services are enabling individuals to virtually “visit” their healthcare providers. There is a lot to love at any moment relating to this better mode of obtaining healthcare, but telahealth has been invaluable during the pandemic. As soon as many people have the advantage of telehealth, it appears a good choice that they will be not going to go back to in-person healthcare visits until required.
Tech giant Amazon‘s e-commerce industry is booming, driven by a surge in internet shopping for important items that began in March. The pandemic almost certainly provided a huge improvement to Prime membership since such a membership enables consumers to become free, faster delivery. This bodes well for the long term since Prime members spend far more cash than nonmembers on the company’s website.
As the top video-streaming provider, Netflix is actually benefiting from the pandemic-driven rise in streaming. Many folks are watching more TV and films since they’re now home more often than usual. Additionally, movie theaters throughout the united states and in several other nations are shut, that is yet another critical factor driving demand for streamed content.
DocuSign is a digital document-signing specialist. The company’s services allow guys to conduct transactions remotely this previously needed to be completed in person. Its offerings save people & companies time as well as money and must prove more popular then ever.
Food delivery is much more popular than ever since restaurants are temporarily shuttered and it is tough in many areas of the country to order food online. Restaurants may struggle for a period of time to win back consumers, many of whom will be wary of being packed in way too tightly with other diners. This may be a boon to Domino’s as well as other businesses focused on food delivery.
2 crisis management as well as mitigation stocks Everbridge’s platform provides communications and applications that really help businesses and government entities keep people secure and their operations working during vital events. The software-as-a-service (SaaS) organization recently launched pandemic related services.
FTI Consulting is actually a leading global monetary and management consulting firm. It focuses on corporate finance and restructuring, forensic and litigation consulting, economic consulting, technology, and strategic communications. It’s a COVID-19 response staff that is assisting clients evaluate as well as mitigate the pandemic‘s impact on the stakeholders of theirs.
Profitability note Teladoc and Everbridge are not rewarding and they are not supposed to be worthwhile in the following year. That’s the reason the stocks of theirs have no forward price-to-earnings ratio in the table. So these stocks are not good fits for investors who just want to invest in companies that are currently rewarding or even at least on the verge of profitability.
Should you devote $1,000 in Netflix, Inc. immediately?
Before you look into Netflix, Inc., you’ll want to hear that.
Investing legend and Motley Fool Co-founder Tom Gardner just revealed what he thinks are actually the 10 best stocks for investors to buy right now… and Netflix, Inc. wasn’t one of them.
The internet investing service he runs, Motley Fool Everlasting Stocks, has beaten the stock market by more than 3X.* And right now, he thinks you will find 10 stocks that are better buys.
