Zoom video communications ZM is undoubtedly one of the biggest winners of coronavirus-induced blockages, home shelter guidelines and the trend of social distancing. The stock increased by 489.8% from year to year.
Demand for this Zacks Rank # 3 (Hold) native cloud unified communications platform, which combines video, audio, phone, screen sharing and chat capabilities, has grown significantly due to the wave of online learning at work and at home. .
In addition to distance workers and online educators, Zoom Video solutions are rapidly being adopted by telehealth providers. Remote diagnosis helps them to comply with the rules of social distancing without compromising the patient’s medical care.
As vaccination programs take several months to reach a large part of the global population, social distancing measures are needed to keep the infection rate fixed. This will require the continuation of home learning and online learning, thus determining the top increase in Zoom.
However, Zoom’s current momentum is likely to be hard to sustain in 2021, as a significant portion of employees are expected to return to the office, according to this report from real estate company JLL, quoted by CNBC. Obviously, three out of four workers want to join the office when the coronavirus-led health risk disappears. In fact, a hybrid model that includes a few days of work from home is likely to be popular with employees.
Although the hybrid model is beneficial for Zoom, the intensification of competition from such MicrosoftMSFT teams and CiscoCSCO Webex is a headwind.
3 better bets than Zoom for 2021
Here we choose three fundamentally strong stocks that offer good investment opportunities compared to Zoom in 2021.
Logitech LOGI gains from solid performance through its gaming and video collaboration units. The PC peripheral market is also experiencing strong traction, which is helping to grow the top. In addition, the demand for gaming products has grown on the growing popularity of online video games and eSports, amid the pandemic-driven home environment.
Moreover, thriving cloud-based video conferencing services will continue to be the key catalyst for this company’s Zacks Rank # 1 prospects. You can see The full list of Zacks # 1 stocks today is here.
Moreover, the growing adoption of new mobile platforms in both mature and emerging markets fuels the demand for Logitech peripherals and accessories. Notably, the company has manufactured innovative offerings, such as the best-performing mouse and keyboard switches, the longest-battery wireless mouse, and multi-device keyboards, among others.
In addition, Logitech’s partnerships with Zoom, as well as cloud platform providers such as Microsoft and Google, are major positives.
Zacks’ consensus estimate for the company’s 2021 tax earnings of $ 15.27 billion has been revised up 64.8% to $ 4.12 a share over the past 60 days.
Logitech International SA Price, consensus and EPS surprise
Logitech International SA price-consensus-eps-graphic-surprise | Devit Logitech International SA
dropbox DBX builds on the growing demand for its team collaboration tools, through which users can share files, photos, videos, songs, and spreadsheets. Zacks Rank # 2’s strong focus on product innovation and the introduction of solutions such as updated Dropbox Spaces, HelloSign, Passwords, Vault and Backup on the computer is expected to expand the user base.
The solid demand for cloud storage, triggered by the wave of work at home driven by coronavirus, acts as a tailwind for this company of $ 9.73 billion. In addition, integration with top apps like Zoom, Slack and Atlassian will likely expand the Dropbox paid user base.
In addition, Dropbox’s innovative “Virtual First” initiative, in which its employees will work from home most of the time and meet from time to time for team collaboration, is expected to lower costs. The company’s plan to move to low-cost regions is likely to increase profitability.
Zacks’ consensus estimate for earnings in 2020 is 88 cents a share, up 12.8% over the past 60 days. The consensus mark for its 2021 earnings is set at $ 1 per share, being revised up 9.9% over the same period.
Dropbox, Inc. Price, consensus and surprise EPS
Dropbox, Inc. price-consensus-eps-graphic-surprise | Dropbox, Inc. Quote
CrowdStrike Holdings CRWD is benefiting from the growing demand for cyber security solutions due to the large number of data breaches and the growing need for security and network products amid the trend of remote work driven by the COVID-19 pandemic.
Moreover, the continuous digital transformation and cloud migration strategies adopted by organizations are key growth factors for this company Zacks Rank # 2. The power of the CrowdStrike portfolio, mainly the 10 cloud modules of the Falcon platform, increases its competitive advantage and helps to add of users.
Moreover, the new generation of antivirus, EDR and device control products are well prepared to win amid the thriving culture of remote work.
CrowdStrike has a market capitalization of $ 39.78 billion. The consensus mark for the bottom line of 2020 is set at 22 cents per share, up 266.7% in the last 60 days. For 2021, the consensus mark for gains has moved 45.5% north to 32 cents a share over the same period.
CrowdStrike Holdings Inc. Price, consensus and surprise EPS
CrowdStrike Holdings Inc. price-consensus-eps-surprise-graphic | Quotation CrowdStrike Holdings Inc.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our top 10 for the entire year 2021?
These 10 are carefully chosen from over 4,000 companies covered by Zacks Rank. These are our main options for buying and holding. Turn on new access Zacks Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download the 7 best stocks for the next 30 days. Click to get this free report
Microsoft Corporation (MSFT): free inventory analysis report
Cisco Systems, Inc. (CSCO): free stock analysis report
Logitech International SA (LOGI): Free stock analysis report
Dropbox, Inc. (DBX): free inventory analysis report
Zoom Video Communications, Inc. (ZM): free stock analysis report
CrowdStrike Holdings Inc. (CRWD): Free inventory analysis report
To read this article on Zacks.com, click here.
Zacks Investment Research