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Stay-at-Home Stocks Find Favor With New Age Investors
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The past year has been tremendous for e-commerce giant Amazon (AMZN - Free Report) . The stock has gained a massive 96.8%, way ahead of the 15.8% rise of the S&P 500 Index. Online media giant Netflix (NFLX - Free Report) has surged 88.7%. Leading pizza delivery company, Domino’s Pizza (DPZ - Free Report) has risen 40.1% over the past year.
On the contrary, retail drug store industry majors, Rite Aid and Walgreens Boots Alliance (WBA - Free Report) have witnessed a steep decline of 52.8% and 11.6%, respectively, in the same time frame.
Apparently, there does not seem to be a connection between these discrete stocks. However, going by Jim Cramer, the link is quite strong. They are all connected by the ‘Stay-at-Home economy’ concept that has become the buzzword of the financial world.
Stay-at-Home Economy at a Glance
In the past few years, the gradually changing lifestyle of people has led to an interesting consumption pattern. This tech-savvy generation is keen on staying indoors and avail a broad range of products and services from the comfort of their couch.
A Hade Platform report states that the term "home" originated in Japan. However, it gradually transformed into “a collective name for those who stayed at home, indulged in personal interests and hobbies, and were out of touch with society.” Needless to say, a number of industries like online retailing or food home delivery are already benefiting from the evolving Stay-at-Home trend.
Undoubtedly, the rise of cloud platforms and smart devices has also contributed to this consumption pattern. For investors, the most important part of Stay-at-Home concept is that the benefits are not limited to any specific industry. Rather, these are felt across a range of business segments and investment arenas.
This still little-known term has already created stir in the investment world and it is time for investors to wake up to this new commercial metaphor.
Stock Trends Clearly Depict the New Pattern
Be it Amazon, Netflix, Domino’s, or Rite Aid and Walgreens, their performance curves make the Cramer-forwarded concept of Stay-at-Home Economy quite evident.
The first three companies allow people to stay home and lead a convenient life at a minimum cost. The striking performances of these stocks elaborate how their business pattern has been well accepted. Let’s delve deeper.
Amazon crushed earnings estimates in the second quarter. Amazon Prime subscribers have already exceeded 100 million, leading to net product sales of $31.86 billion in the second quarter. Not only that, this Zacks Rank #2 (Buy) stock, while maintaining a huge hold in cloud computing, has expanded into the medical and pharmaceutical world, leading to a new definition of healthcare practice. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Netflix’s subscriber base is expanding at a fast pace, helping it generate significant revenues. This Zacks Rank #3 (Hold) company remains confident of adding more subscribers as the trend of Internet TV/binge viewing catches up. Moreover, the company’s efforts to attract viewers through investing in more regional programming have added significantly to its user base.
Domino’s Pizza stock has gained nearly fivefold in the past five years. The company has become a strong international player while also keeping its domestic dominance. This Zacks Rank #3 (Hold) company is a leader in pioneering consumer trend. It was one of the first companies in the pizza industry to build its mobile and online ordering systems.
Brick and Mortar Losing Ground
While the online players are gaining precedence, traditional brick and mortar is taking a backseat as evident from the performances of Walgreens, Rite Aid or Target Corporation. Going by an article published in Seeking Alpha, “The bricks and mortars are losing in a world where consumers see stay-at-home as an advantage.”
Jim Cramer has elaborated it in a more comprehensive way. Citing Target as an example, he stated that while shopping was earlier treated as a recreation, the new generation thinks differently. According to this investment strategist, now people want document-able, record-able experiences. “Unless they can go out and create memories they can share with their friends online, they mostly watch things at home and order delivery instead of driving to restaurants”- he said.
Additionally, prices at brick and mortars like Target are not quite attractive; more so when compared to what one can gets on Amazon. Further, these brick and mortar stores hardly have sufficient number of proprietary items to lure consumers.
Bottom Line
While the majority will focus on big shot ‘Stay-at-Home’ players, we ask you to minutely study the market to get a list of the lesser known stocks. You never know when one of these stocks will turn out to be as the Amazon or Domino’s of your portfolio. Home improvement supplies online company, Home Depot (HD - Free Report) or video games company, Activision-Blizzard certainly have the potential to make it count. Both the stocks carry a Zacks Rank #3 currently.
5 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2018 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs. A bonus Zacks Special Report names this breakthrough and the 5 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.
Image: Bigstock
Stay-at-Home Stocks Find Favor With New Age Investors
The past year has been tremendous for e-commerce giant Amazon (AMZN - Free Report) . The stock has gained a massive 96.8%, way ahead of the 15.8% rise of the S&P 500 Index. Online media giant Netflix (NFLX - Free Report) has surged 88.7%. Leading pizza delivery company, Domino’s Pizza (DPZ - Free Report) has risen 40.1% over the past year.
On the contrary, retail drug store industry majors, Rite Aid and Walgreens Boots Alliance (WBA - Free Report) have witnessed a steep decline of 52.8% and 11.6%, respectively, in the same time frame.
Apparently, there does not seem to be a connection between these discrete stocks. However, going by Jim Cramer, the link is quite strong. They are all connected by the ‘Stay-at-Home economy’ concept that has become the buzzword of the financial world.
Stay-at-Home Economy at a Glance
In the past few years, the gradually changing lifestyle of people has led to an interesting consumption pattern. This tech-savvy generation is keen on staying indoors and avail a broad range of products and services from the comfort of their couch.
A Hade Platform report states that the term "home" originated in Japan. However, it gradually transformed into “a collective name for those who stayed at home, indulged in personal interests and hobbies, and were out of touch with society.” Needless to say, a number of industries like online retailing or food home delivery are already benefiting from the evolving Stay-at-Home trend.
Undoubtedly, the rise of cloud platforms and smart devices has also contributed to this consumption pattern. For investors, the most important part of Stay-at-Home concept is that the benefits are not limited to any specific industry. Rather, these are felt across a range of business segments and investment arenas.
This still little-known term has already created stir in the investment world and it is time for investors to wake up to this new commercial metaphor.
Stock Trends Clearly Depict the New Pattern
Be it Amazon, Netflix, Domino’s, or Rite Aid and Walgreens, their performance curves make the Cramer-forwarded concept of Stay-at-Home Economy quite evident.
The first three companies allow people to stay home and lead a convenient life at a minimum cost. The striking performances of these stocks elaborate how their business pattern has been well accepted. Let’s delve deeper.
Amazon crushed earnings estimates in the second quarter. Amazon Prime subscribers have already exceeded 100 million, leading to net product sales of $31.86 billion in the second quarter. Not only that, this Zacks Rank #2 (Buy) stock, while maintaining a huge hold in cloud computing, has expanded into the medical and pharmaceutical world, leading to a new definition of healthcare practice. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Netflix’s subscriber base is expanding at a fast pace, helping it generate significant revenues. This Zacks Rank #3 (Hold) company remains confident of adding more subscribers as the trend of Internet TV/binge viewing catches up. Moreover, the company’s efforts to attract viewers through investing in more regional programming have added significantly to its user base.
Domino’s Pizza stock has gained nearly fivefold in the past five years. The company has become a strong international player while also keeping its domestic dominance. This Zacks Rank #3 (Hold) company is a leader in pioneering consumer trend. It was one of the first companies in the pizza industry to build its mobile and online ordering systems.
Brick and Mortar Losing Ground
While the online players are gaining precedence, traditional brick and mortar is taking a backseat as evident from the performances of Walgreens, Rite Aid or Target Corporation. Going by an article published in Seeking Alpha, “The bricks and mortars are losing in a world where consumers see stay-at-home as an advantage.”
Jim Cramer has elaborated it in a more comprehensive way. Citing Target as an example, he stated that while shopping was earlier treated as a recreation, the new generation thinks differently. According to this investment strategist, now people want document-able, record-able experiences. “Unless they can go out and create memories they can share with their friends online, they mostly watch things at home and order delivery instead of driving to restaurants”- he said.
Additionally, prices at brick and mortars like Target are not quite attractive; more so when compared to what one can gets on Amazon. Further, these brick and mortar stores hardly have sufficient number of proprietary items to lure consumers.
Bottom Line
While the majority will focus on big shot ‘Stay-at-Home’ players, we ask you to minutely study the market to get a list of the lesser known stocks. You never know when one of these stocks will turn out to be as the Amazon or Domino’s of your portfolio. Home improvement supplies online company, Home Depot (HD - Free Report) or video games company, Activision-Blizzard certainly have the potential to make it count. Both the stocks carry a Zacks Rank #3 currently.
5 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2018 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs. A bonus Zacks Special Report names this breakthrough and the 5 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.
Click to see them right now >>