U.S. markets close in 12 minutes
  • S&P 500

    3,841.59
    -83.84 (-2.14%)
     
  • Dow 30

    31,478.06
    -483.80 (-1.51%)
     
  • Nasdaq

    13,175.40
    -422.56 (-3.11%)
     
  • Russell 2000

    2,207.72
    -76.66 (-3.36%)
     
  • Crude Oil

    63.35
    +0.13 (+0.21%)
     
  • Gold

    1,771.10
    -26.80 (-1.49%)
     
  • Silver

    27.53
    -0.40 (-1.43%)
     
  • EUR/USD

    1.2176
    +0.0007 (+0.06%)
     
  • 10-Yr Bond

    1.5180
    +0.1290 (+9.29%)
     
  • GBP/USD

    1.4023
    -0.0118 (-0.83%)
     
  • USD/JPY

    106.2370
    +0.3550 (+0.34%)
     
  • BTC-USD

    48,868.90
    -236.32 (-0.48%)
     
  • CMC Crypto 200

    978.37
    -16.30 (-1.64%)
     
  • FTSE 100

    6,651.96
    -7.01 (-0.11%)
     
  • Nikkei 225

    30,168.27
    +496.57 (+1.67%)
     

These 4 Work-from-Home Stocks Should Keep Soaring in 2021

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Anirudha Bhagat
·5 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Providers of work-from-home software, storage, security and services have benefited the most from the coronavirus crisis. The pandemic has changed the employment landscape. Although working from home isn’t a new phenomenon, it became a necessity amid the virus outbreak.

Employees too are now comfortable working remotely. Needless to say, this new normal is spurring demand for computer hardware, peripherals, network software and cloud business.

As vaccination programs will take several months to cover a major portion of the global population, social-distancing measures are required to keep the infection rate flat. This will need continuation of work from home, which in turn would continue to drive demand for video conferencing, productivity and collaboration software.

Moreover, growing usage of cloud-based services is aggravating security lapses, inducing risks of hacking and phishing mails in the garb of coronavirus as content of the subject. Additionally, usage of own devices and equipment that are not properly configured or can be infected with malware during teleworking or accessing information from cloud raises possibilities of security breaches for enterprises. This is driving demand for cloud-based security service solutions.

Here we discuss four stocks that have benefited from the work-from-home trend and are well poised to gain from the solid prospects of continued remote working.

Dropbox DBX stock has spiked 28% in the year-to-date period. The company is riding on growing demand for its cloud-based team collaboration tools through which users can share files, photos, videos, songs and spreadsheets.

This Zacks Rank #2 (Buy) company’s strong focus on product innovation and introduction of solutions like updated Dropbox Spaces, HelloSign, Passwords, Vault and Computer Backup are anticipated to expand its user base. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Solid demand for cloud storage, triggered by the coronavirus-led work-from-home wave, has been acting as a tailwind for the company. Further, integration with leading applications like Zoom, Slack and Atlassian will likely expand the Dropbox paying user base.

Additionally, Dropbox’s innovative “Virtual First” initiative, under which employees will work from home majority of the time and will meet once in a while for team collaboration, is expected to lower cost. The company’s plan to shift to hiring in low-cost regions is likely to boost profitability.

The Zacks Consensus Estimate for 2020 earnings stands at 88 cents per share, up 14.3% in the past 60 days. The consensus mark for its 2021 earnings is pegged at $1 per share, having been revised 9.9% upward over the same time frame.

 

CrowdStrike Holdings CRWD is benefiting from rising demand for cyber-security solutions amid several data breaches and the urgency for security and networking products, prompted by the COVID-19 pandemic-led remote working trend. Moreover, continued digital transformation and cloud-migration strategies adopted by organizations are key drivers for this presently Zacks Rank #2 company.

CrowdStrike’s portfolio strength, mainly the Falcon platform’s 10 cloud modules, boosts its competitive edge and helps to add users. Further, the company’s next-generation antivirus EDR and device-control products are well poised to gain from the thriving remote work culture.

The company’s shares have been up a whopping 312.9% year to date. The consensus mark for its 2021 bottom line is pegged at 22 cents per share, having been revised a whopping 266.7% upward in the past 30 days. For fiscal 2022, the consensus mark for earnings has moved 33.3% north to 32 cents per share over the same time frame.

 

DocuSign Inc. DOCU provides e-signature solutions. The company’s software provides a proof of signing process to all parties related to a transaction. DocuSign is poised to benefit from the growing number of off-site and work-from-home availing employees amid coronavirus fears.

Furthermore, the long-term outlook of DocuSign looks impressive owing to a rising freelance market, as government and organizations are finding it more convenient and cost effective in hiring freelancers than employing full-time staff. This Zacks Rank #3 (Hold) company has software integration partnerships with Microsoft, Salesforce, Oracle, and others, which is likely to continue boosting its user base.

The Zacks Consensus Estimate for fiscal 2021 earnings is pegged at 74 cents per share, having been revised 34.5% upward in 30 days’ time. For fiscal 2022, the consensus mark for earnings has moved 28.2% north to $1.09 per share over the same time frame. Shares of DocuSign have soared 207.9% in the year so far.

 

Microsoft’s MSFT Office 365 commercial suite paid version enables team members to share files, schedule meetings directly from Outlook, record meetings and collaborate on documents using the desktop Office programs and SharePoint Online.

Microsoft is an all-rounder with encouraging prospects across cloud computing, AI, 5G, edge computing, gaming, enterprise communication and PC markets. The company is well poised to gain from expanding Azure clientele, solid momentum in Teams and growing user base of different applications including Microsoft 365 commercial, Dynamics, and Outlook mobile.

The company is also taking gaming to new highs with the launch of next generation Xbox Series X and S consoles. Further, positive trend in PC shipments remains a tailwind for its latest Surface devices.

The Zacks Consensus Estimate for fiscal 2021 earnings increased by 5 cents to $6.73 per share over the past 60 days, highlighting bullish sentiments for the stock. Notably, shares of this Zacks Rank #3 company has returned 43.6% year to date.

 

Zacks Top 10 Stocks for 2021

In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2021?

These 10 are painstakingly hand-picked from over 4,000 companies covered by the Zacks Rank. They are our primary picks to buy and hold.

Start Your Access to the New Zacks Top 10 Stocks >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Microsoft Corporation (MSFT) : Free Stock Analysis Report
 
DocuSign Inc. (DOCU) : Free Stock Analysis Report
 
Dropbox, Inc. (DBX) : Free Stock Analysis Report
 
CrowdStrike Holdings Inc. (CRWD) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.