The Coronavirus Pandemic Has Radically Changed the Way Companies Are Conducting Business
These 10 Stocks Are Rebounding Sharply as Investors Adjust to the New COVID-19 Work From Home Economy
Just last month, North American financial markets were chugging along, setting multiple all-time highs in February. A lot has changed in the past 30 days due to the rapid rise and global spread of the novel Coronavirus (COVID-19). The way of life we once knew has changed dramatically for the time being.
COVID-19 originated in Wuhan, China, in late 2019. The virus has since spread globally, effectively bringing the world’s supply chain to a halt and, more recently, causing schools and restaurants to close. It’s affected nearly every business, with many employees forced to work from home until the pandemic runs its course. President Trump stated recently that the Coronavirus crisis could last all summer.
As we’ve seen throughout history, every major economic crisis also brings with it great opportunities for investors. In response to the massive disruptions to the North American economy, the stock market has corrected in record-setting fashion. Since reaching a new all-time high of 29,568.57 on February 12, 2020, the Dow Jones Industrials Average (DJIA) has plummeted as much as 9,686.31 points (–32.76%) in just over a month. Canada’s main index, the TSX Composite Index (TSX), didn’t fare any better as it shed as much as 6,086.85 points (-34.15%) since peaking at 17,970.51 on February 20, 2020.
The unprecedented drop in the financial markets has dragged the valuations of nearly every company down with it. With so much uncertainty still surrounding the COVID-19 situation, it’s difficult to predict where the market will bottom, but with the broad market down over 30% in such a short period, it could be close. The market is now trading at deeply oversold levels, and many experts are predicting a massive snap back once the situation becomes more clear. For example, an announcement regarding the successful development of a COVID-19 vaccine could spark an enormous stock market rally.
For those with the stomach and appropriate risk tolerance, it may be time to start looking at buying certain stocks. As mentioned, the new work from home economy that has become a reality for many has also created an excellent opportunity for individual companies to thrive. Many of these companies have already begun to rebound as investors come to the same realization.
So, without further delay, here is our list of 10 stocks that could thrive in the new Coronavirus-induced stay at home/work from home economy.
Citrix Systems is a digital workspace company that provides businesses with a platform and the tools for their employees to work virtually from any location. Currently, over 400,000 businesses use the Citrix platform, which includes 99% of the Fortune 500 companies. According to the company’s website, over 100 million individuals are using the platform, and due to the new Coronavirus economy we now live in, these numbers could skyrocket dramatically.
Shares of CTXS stock rose 15.1% today to close the day at $127.46.
RingCentral is a leading provider of global cloud communications, collaboration, and contact center solutions for businesses. RingCentral’s platform allows businesses and their employees to work together and collaborate on projects from any location and any device. The company offers global services that are now in very high demand, such as unified voice, video meetings, team messaging, digital customer engagement, and integrated contact centers.
RNG stock closed trading today at $163.25, up 17.48% on the day.
Teladoc Health is the only technology company that offers a comprehensive virtual care solution that’s capable of serving organizations and people anywhere in the world. The company provides a variety of virtual healthcare services for general medical, mental health, and complex care.
Shares of TDOC stock closed today’s trading session up 1.28% at $118.24.
Slack provides companies with the tools and technology to work remotely through its collaboration hub. Millions of people around the world use Slack to connect their teams, unify their systems, and drive their business forward. Slack gives its users the ability to stay productive even while working from home. Another company with technology that is now in high demand.
Share of WORK stock jumped 16.78% today to close at $19.90 per share.
Zoom is a provider of video and web conferencing technologies. The company offers an online platform that features services such as cloud video conferencing, online meetings, group messaging and a software-defined video conference room. Zoom’s all in one platform will undoubtedly see a sharp rise in users as more and more employees are working from home.
ZM shares closed today at $111.10 per share, up 3% on the day.
Campbell Soup is a brand name everyone knows. The company makes a wide range of high-quality soups, simple meals, beverages and snacks. As people rush to stock up on food and supplies, many of Campbell’s products are flying off the shelves. It’s not just Campbell’s products that are in high demand. Shares of the company’s stock have also been a popular choice for investors.
CPB stock reached a new 52-week high today as shares rose 9.21% to close at $53.84 per share.
Microsoft is another company on our list that everyone is familiar with. The company offers a variety of products and services, which include operating systems for computing devices, servers, video games, phones and the very popular communication app Skype. Microsoft also offers a range of business solution applications like Microsoft Teams, which allows users to chat, meet, call, and collaborate from anywhere all on one platform.
MSFT stock rose 8.23% today to close the session at $146.57 per share.
The Clorox Company is a leading manufacturer of consumer cleaning products. Clorox markets some of the most recognized brand names, including its namesake bleach and cleaning products. The company has a global product portfolio made up of diverse brands sold in more than 100 countries in nearly every region of the world. Most importantly, Clorox makes products that help kill germs at home, the office and in healthcare settings. In our current environment, Clorox cleaning products are must-have in the fight to stop the spread of the Coronavirus.
CLX shares closed today at $197.88 per share, up 13.27%.
Netflix is a leading internet streaming entertainment company with millions of subscribers in nearly 50 countries. Netflix subscribers have access to an ever-expanding library of TV shows, movies, docuseries and documentaries. Netflix also creates its own high-quality shows and feature films that are available on the platform. The company’s streaming platform gives subscribers the ability to watch what they want, anytime, anywhere, on nearly any internet-connected screen. With so many people around the world stuck at home during the pandemic, the company could see its subscriber count rise substantially as more people decide to ‘Netflix and Chill’ to kill time.
NFLX stock closed today at $319.75, up 7% on the day.
DocuSign is a technology company that provides e-signature solutions for businesses. The company’s services are used regularly by professionals in a wide range of industries such as healthcare, government, insurance, and real estate. DocuSign’s product portfolio allows organizations to manage electronic agreements virtually. Agreements between parties can be signed electronically on a variety of different devices, eliminating the need for face to face meetings.
DOCU closed trading today at $70.94, down 1.89%.
Charts source: Barchart.com
Disclosure: The Cannabis Investor does not hold a position in any of the stocks mentioned in this article.