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The Zacks Analyst Blog Highlights: Zoom Video, Dropbox, JD.com, Wayfair and Atlassian

Zacks Equity Research
·6 min read

For Immediate Release

Chicago, IL – June 22, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Zoom Video Communications, Inc. ZM, Dropbox, Inc. DBX, JD.com, Inc. JD, Wayfair Inc. W and Atlassian Corporation Plc TEAM.

Here are highlights from Friday’s Analyst Blog:

5 Online Players to Buy as Coronavirus Cases Rise Again

Benchmarks faltered on Jun 18 as investors grew concerned about the rise in new coronavirus cases in some of the states with the gradual reopening of the economy. A rise in new cases has increased possibilities of a new round of lockdown measures.

In the United States, nearly 10 states have reported a record number of new COVID-19 cases and Florida could be the next epicenter of the pandemic. The state reported 3,207 additional coronavirus cases on Jun 18, the largest single-day count in Florida since the start of the pandemic. The increase in cases is a concern as more than 75% of Florida's adult intensive care unit beds are occupied at present.

Other states that have recorded spike in cases are Alabama, Arizona, California, Nevada, North Carolina, Oklahoma, Oregon, South Carolina and Texas.

Work-from-Home Stocks Trend North

Due to the resurgence in cases, companies issued extended work-from-home orders. What drives this work-from-home trend more than the pandemic is productivity. With performance-monitoring tools and data security in place, technology firms have been performing well during this global health scare. Firms have reported that employees remain logged in for more hours and the deliverables have not been impacted. This has led companies to extend remote working options.

Jack Dorsey, CEO of Twitter and Square, has asked employees to work from home forever while Google and Facebook notified employees that they can be in work-from-home mode until the end of 2020.

Now, with companies forced to conduct their businesses online, there is heightened demand for video conferencing, cloud computing, data security and related stuff. Technology firms are likely to reap the benefits of this extended stay-at-home orders.

Online Retailers Move Higher

The coronavirus pandemic has weighed heavily on brick-and-mortar stores. Several discretionary product stores have been shut down for nearly three months now and cost a huge number of jobs. However, online retailers have been faring well during this time. Non-store sales jumped 9% in May and rose 30.8% from May 2019.

Stores offering contactless deliveries, curbside pickups and allowing customers to pay online have been performing well even during the pandemic. In fact, brick-and-mortar retailers that have gone online during this period have seen a surge in demand.

According to data by eMarketer, Walmart surpassed eBay in terms of share in U.S. e-commerce sales for the first time in May. In the said month, Walmart’s total e-commerce sales share was 5.8%, while eBay held 4.5%. In fact, big box retailers like Target and Costco have accelerated their e-commerce businesses and are now in the top 10 list of e-commerce sales. Amazon still remains the leader with a bigger margin of 38% sales.

Per eMarketer estimates, e-commerce sales in 2020 are expected to rise 18%, higher than the previous forecast of 13% growth.

5 Stocks to Buy

Given the present scenario, it is prudent to invest in these five stocks that are into e-commerce and support remote working.

Zoom Video Communications, Inc. provides a video-first communications platform. The company’s expected earnings growth rate for the current year is more than 100% compared with the Zacks Internet - Software industry’s projected earnings growth of 2.3%.

The Zacks Consensus Estimate for its current-year earnings has climbed more than 100% over the past 60 days. Zoom Video sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Dropbox, Inc. provides a collaboration platform. The company’s expected earnings growth rate for the current quarter is 70% against the Zacks Internet - Services industry’s projected earnings decline of 16.3%. The Zacks Consensus Estimate for its current-year earnings has moved up 4.3% over the past 60 days. Dropbox sports a Zacks Rank #1.

JD.com, Inc.operates as an e-commerce company and retail infrastructure service provider. The company’s expected earnings growth rate for the current quarter is 15.2% against the Zacks Internet - Commerce industry’s projected earnings decline of 42.7%. The Zacks Consensus Estimate for its current-year earnings has moved up 49.4% over the past 60 days. JD.com sports a Zacks Rank #1.

Wayfair Inc.is an e-commerce business, offering furniture, décor, housewares, and other home goods. The company’s expected earnings growth rate for the current quarter is more than 100% against the Zacks Internet - Commerce industry’s projected earnings decline of 42.7%.The Zacks Consensus Estimate for its current-year earnings has moved 51.9% up over the past 60 days. Wayfair carries a Zacks Rank #2 (Buy).

Atlassian Corporation Plcprovides project tracking, content creation and sharing, and service management products. The company’s expected earnings growth rate for the current year is 26.7% compared with the Zacks Internet - Software industry’s projected earnings growth of 2.3%. The Zacks Consensus Estimate for its current-year earnings has moved 2.8% up over the past 60 days. Atlassian carries a Zacks Rank #2.

5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.

See the 5 high-tech stocks now>>

Media Contact                                               

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com                       

https://www.zacks.com                                                   

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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JD.com, Inc. (JD) : Free Stock Analysis Report
 
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Dropbox, Inc. (DBX) : Free Stock Analysis Report
 
Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report
 
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