Check Out These Stay-at-Home Stocks In The Stock Market Today
With the Omicron variant raging across the world as the winter holiday approaches, it’s natural that the stay-at-home stocks are in the limelight again. It’s no secret that the U.S. is now facing a resurgent coronavirus as the pandemic marches into its third year. Elsewhere in Europe, the Netherlands has just gone into a month-long nationwide lockdown yesterday while the UK wouldn’t rule out further restrictions.
Against this backdrop, tech stocks offering video conferencing and cloud computing services have had the unique opportunity to help businesses weather the coronavirus pandemic. Naturally, investors would flock to capitalize on this opportunity once again. Considering that many of these stay-at-home names have now taken a breather, I can understand why some investors are putting up a list of top stay-at-home stocks to watch right now.
As we try to find a “new normal” amid a crisis, technology plays a key role in helping people stay connected during this unprecedented time. Certainly, many critics say this demand may be short-lived and will fade once things go back to normal. But others believe that the work-from-home trend is likely to be sticky. Investors who are looking for a couple of investments that are tapping into the stay-at-home theme might want to consider taking a closer look at these stocks in the stock market today.
Top Stay-at-Home Stocks To Watch This Week
- DocuSign Inc. (NASDAQ: DOCU)
- Workday Inc. (NASDAQ: WDAY)
- Zoom Video Communications Inc. (NASDAQ: ZM)
- Twilio Inc. (NYSE: TWLO)
- Domino’s Pizza Inc. (NYSE: DPZ)
It is safe to say that digital signature company DocuSign is here to stay as remote work becomes a norm for many organizations. DocuSign enables companies and individuals to sign and manage contracts and agreements digitally under its DocuSign Agreement Cloud.
Its range of products under the DocuSign Agreement Cloud also includes DocuSign Insight which uses artificial intelligence (AI) to identify risks and opportunities within an agreement.
From its latest quarter, revenue came in 42% higher year-over-year to $545.5 million. This is driven by the subscription revenue of $528.6 million, which represents an increase of 44%. Given its seemingly robust quarter, you would expect a post quarter boost with the stock. But instead, the opposite happened due the company’s decelerating billings and weak fourth-quarter outlook. Considering its recent dip, would you include DOCU stock on your watchlist right now?
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Next, we have Workday, a provider of on-demand financial management and human capital management software services. In a nutshell, the company’s enterprise cloud applications serve as finance and human resources solutions for companies today. Among Workday’s core offerings are its financial management, human resources, planning, spend management, and analytical applications. With most payroll operations going digital amidst the pandemic, Workday would be looking at busy times.
It’s not surprising that investors are watching to see if the company could continue to record a strong growth rate over the next decade. After all, companies like Workday are attractive because they tend to have high margins and recurring revenue.
From its latest quarter, revenue came in 20% higher year-over-year to $1.3 billion, with over 90% of it coming from recurring subscriptions. It also made a new milestone with an earnings per share of 17 cents during the quarter, from a loss of 10 cents per share last year. Given its strong fundamentals, would you consider investing in WDAY stock right now?
Zoom Video Communications
Zoom’s video conference platform has become a mainstay during the pandemic as remote working became a norm. The company’s video telephony and online chat services have exploded in popularity since the start of the pandemic.
For its third fiscal quarter results, the company posted a total revenue of $1.05 billion. That represents an increase of 35% year-over-year. It saw 2,507 customers contributing more than $100,000 in trailing 12 months revenue, up by about 94% year-over-year. Zoom also said it will launch its own cloud contact center software in early 2022.
The company’s stock however has been under pressure throughout the year despite its revenue growth. After all, investors may have concerns about potential slowdowns in the company’s growth as the economy reopens. But with many companies delaying their plans to bring their employees back to office, many will continue to rely on services provided by Zoom. With that in mind, would you be adding ZM stock to your portfolio?
Cloud-based software-as-a-service specialist Twilio is looking more like a compelling growth play at these prices. For starters, Twilio provides a cloud communication platform which utilizes Application Programming Interfaces (APIs) that act as intermediaries to allow two entities to communicate to each other. For example, if you’re booking a room online with Airbnb (NASDAQ: ABNB), Twilio helps you communicate with the host. And with its dynamic communication solutions, it now boasts more than 250,000 active customers.
No doubt, TWLO stock has shed a considerable amount of its value this year. And with the volatility in today’s stock market, you don’t want to be catching a falling knife. After Twilio posted quarterly earnings in late October, the stock has continued facing selling pressure.
Partly, you could say that its string of acquisitions have padded its top line. But we can’t deny that the company posted a healthy rate of growth in its organic revenue year-over-year. Considering the key role Twilio plays in this space, would you bet on TWLO stock as the world continues to fight the pandemic?
Unlike the other companies on this list, Domino’s Pizza is not a tool or software that could improve your work productivity. But its pizzas saw skyrocketing demand during the height of the pandemic. For starters, the company has developed deep, profitable relationships with its customers. What’s more, by keeping delivery in-house, the company has a more complete control of its customers’ experiences.
Despite its slowing U.S. same-store sales growth in its third quarter, the company reassured its investors that the growth runway is far from over. For the third quarter, revenue increased $30.3 million, or 3.1%, to $998 million.
Besides, Domino’s extended its stunning 111-quarter streak of positive same-store sales internationally, highlighting its continued successful expansion globally. As the company continues to cater to customer needs amid these challenging times, would DPZ stock make your list of top stay-at-home stocks to buy in the stock market today?
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