3 Work-From-Home Stocks to Capitalize on the Telecommuting Boom
The COVID-19 pandemic upended the workforce dynamic and changed it in ways we never anticipated. The transition from office to remote work for almost every industry came swiftly, as the circumstances required. Some numbers indicated that work from home setups improved productivity to startling degrees. The massive shift turned some heads, and investors lined up to look for established and emerging work from home stocks to buy, pushing companies to new highs.
But now, it’s two years later, and the market has moved on to other industries. But, a recent study even found that 98% of workers still preferred a setup that allowed them to work from home. Instead of the massive price spikes two years ago, work from home companies and providers are now experiencing consistent and sustainable growth. They’re more attractive now and are better value propositions due to their improved prospects. So, let’s look at the best work from home stocks to buy right now.
Alphabet (GOOGL, GOOG)
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These days, it’s difficult not to think that Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) has its hands on everything. The company has some of the most expansive and popular products and services, such as YouTube and Google. Alphabet is also a massive player in the office suites market. Google Workspace offers a comprehensive productivity software suite covering everything from email, video conferencing, word processing, app programming and work automation. Like most of its products, Google Workspace dominates the market.
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GOOGL’s Q3 results were a bit of a mixed bag. Earnings topped estimates by 11%, with ad revenue growing from $54.4 billion to $59.6 billion year-over-year (YOY). Cloud also grew YOY but fell short of expectations. Given the company’s high hopes for the segment, this was enough to convince some market players to selling. After the announcement in October, prices slid from a 52-week high of $141.22 to $120.22. However, it seems like this was a gross overreaction, as buyers immediately bought the dip, bringing prices back up to previous levels. Despite this near-miss, though, Google still has much growth potential. Its cloud, AI, and productivity are poised to grow alongside the work from home job market, and analysts still recommend it as one of the best work from home stocks to buy.
Zoom Video Communications (ZM)
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Zoom Video Communications (NASDAQ:ZM) became famous during the pandemic. However, the company’s flagship web conferencing platform was already gaining traction and market share prior to 2020.
ZM went public early in 2019, just in time for the pandemic boom. Zoom’s innovative approach to video conferencing with features like whiteboard, virtual backgrounds, calendar integrations, customizable views and live transcription helped push the company’s popularity, and stock price, up. “Zoom” is now synonymous with video conferencing like “Google” is with internet searches.
Zoom’s current offerings include Zoom Phone, Zoom One, Zoom Spaces, Events and Contact Center. The company’s increased coverage and expanded products for remote work make it one of the most notable work from home stocks.
ZM’s third quarter for fiscal year 2024, which ended October 31, 2023, delivered some excellent numbers. Total revenue was up 3.2% YOY to $1.136 billion, with its enterprise segment accounting for 58.11% and growing 7.5% YOY. GAAP operating margins grew by 14.9% while operating cash flow was up 67% YOY. Recent EPS also beat estimates by 52.78%. The good news should have pushed the stock up. However, the company’s stock recently dropped to a 52-week low, making it a potentially undervalued stock to pick up at a discount.
Wix.com (WIX)
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Building an online presence these days is almost mandatory for businesses, and Wix.com (NASDAQ:WIX) is in an excellent position to capitalize on that growing demand. The web development platform offers solutions for process integration with created websites for different markets and segments like retail, hospitality, food and beverage and others. WIX’s products are known for their intuitive platform and easy-to-use interface. Its website builder makes the process almost effortless with features like template choices, drag-and-drop elements and SEO optimization tools. The company also frequently tops the charts as a simple website builder.
WIX had been in the red since it went public in 2013. That might not sound good, but in the company’s defense, that’s mainly because it’s been reinvesting revenues in R&D, branding and advertising. Now, all that investment is starting to pay off.
WIX reported it would start posting positive earnings in 2025. Well, Christmas came early as the company achieved the goal 2 years early in Q2 2023. This trend continued in Q3, with net income ending at nearly $7 million compared to a net loss of $47.3 million from the same period last year. EPS also came in with a 271.43% surprise. Analysts are now looking at WIX as one of the best work from home stocks to buy, and investor interest mirrors their sentiment. Buyers have already pushed it up to a new 52-week high, and the bullish run hasn’t shown signs of stopping.
On the date of publication, Rick Orford held a long position in GOOGL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.
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