Zoom, Slack, Docusign: Will Flu Season Help Work From Home Stocks?

The Coronavirus has forced people to increasingly work and learn from home, causing surging demand for connectivity, collaboration, and cybersecurity-related software. Our indicative theme on Work And Learn From Home Stocks is up by 210% year-to-date, compared to the S&P 500 which is up a mere 4%. Most of these stocks have fared well over the last few weeks as well, as investors bet that the fall flu season could see Covid-19 cases rise in the U.S., calling for greater restrictions and stay-home orders.

To be sure, valuations are high for many of these stocks, but it’s quite possible that the pandemic will result in a structural shift of sorts, benefiting these companies in the long-run as well. Zoom (NASDAQ: ZM) has been the biggest driver of the theme’s returns, rising by over 580% year-to-date. On the other side, Slack’s (NYSE: WORK) performance has been more muted, rising 20% this year. Below is a bit more about the companies in our theme.

Zoom has emerged as the video conferencing platform of choice through the pandemic, thanks to its easy user interface and simple sign-up process. The stock has gained about 580% year-to-date and is up by about 4% over the last 5 trading days.

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ZM

DocuSign offers e-signature solutions that enable companies to sign and manage contracts and agreements digitally, avoiding a time consuming and inefficient manual process. The stock has gained 187% year-to-date and is up by about 4% over the last 5 trading days.

CrowdStrike is a cybersecurity player that offers a cloud-delivered endpoint protection platform, which relies on a lightweight software running on the customer’s servers or laptops. The stock is up by 173% this year and is down by about -1% over the last 5 trading days.

Okta is a cloud security company that provides identity and access management tools that enable users to securely access cloud-based applications from various devices. The stock has gained about 85% this year and is up by about 3% over the last 5 trading days.

Slack Technologies is best known for its collaboration platform that is positioned as an alternative to email. The stock is up by about 20% year-to-date and is up by about 2% over the last 5 trading days.

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio to beat the market, with over 100% return since 2016, versus 50% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.

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