In this article, we will take a look at the 10 best work-from-home (WFH) stocks to buy now. You can skip our comprehensive analysis of these companies and go directly to the 5 Best Work-From-Home (WFH) Stocks to Buy Now.
Remote working is no longer a privilege held by a small, highly educated minority in the world economy, but has spread over the past few months to become the new normal for most businesses. The lockdowns, quarantines, and self-isolations due to the COVID-19 pandemic resulted in a historic shift in the job market and working from home now seems to extend beyond the coronavirus crisis. According to management consultancy McKinsey, hybrid work models have led to a structural shift in where work takes place for many people.
McKinsey research indicates that more than 20 percent of the workforce could work remotely three to five days a week and be as productive as they would be from an office. The research also underlines that if remote working took off, three to four times as many people working from home than before the pandemic would result in a chain reaction affecting other sectors of the economy like urban markets, transportation, and consumer spending. Illustrating this shift is enterprise spending on cloud services, which has climbed to $129 billion in the past ten years.
There are several companies that rode the work-from-home wave through 2020 and look set for further growth even as businesses reopen. Zoom Video Communications, Inc. (NASDAQ: ZM), a communications technology firm, saw share price climb to 817% year-to-date highs at the height of the virus crisis in October before calming towards the end of the year, though it was still trading a 425% year-to-date surge then. Zoom Video Communications, Inc. (NASDAQ: ZM) has also seen annual revenue jump to over $2.6 billion in 2020 from $600 million in 2019.
Another company that benefited from the increased online business activity was CrowdStrike Holdings, Inc. (NASDAQ: CRWD), a cybersecurity firm. CrowdStrike Holdings, Inc. (NASDAQ: CRWD) almost doubled annual revenue in 2020 compared to 2019, and recently signed a deal with search giant Google to extend endpoint protection plans on cloud services offered by Google. CrowdStrike Holdings, Inc. (NASDAQ: CRWD) has so far only made small inroads in the cybersecurity market valued at over $35 billion and has lots of room to run. CRWD is one of the best work-from-home (WFH) stocks to buy now.
Slack Technologies, Inc. (NYSE: WORK) is another worthy winner of the work-from-home market. The software provided by the firm integrates teams and processes for big businesses and makes communications easier. Slack Technologies, Inc. (NYSE: WORK) stock did not witness explosive growth like some peers in the tech sector during the pandemic but registered steady gains, posting a close to 50% increase in annual revenue and outperforming the wider market. Slack Technologies, Inc. (NYSE: WORK) is one of the pioneers of digital business communications. WORK is one of the best work-from-home (WFH) stocks to buy now.
It certainly seems like the work-from-culture is here to stay, but it is still very tricky to predict market direction at any given point in time as disruptors routinely stoke volatility in several sectors, including the finance world. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details…