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Consider These Work-From-Home Stocks for 2021 and Beyond

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The pandemic has opened our eyes on many things, one being the fact that there are jobs that can be done remotely without compromising on employees’ productivity or work quality.

For 2021, the work-from-home model shall continue as a necessity, since vaccination programs would take several months to cover the global population. Nevertheless, looking beyond the crisis, remote working could be an irreversible change as organizations have started seeing opportunities of business expansion, productivity improvement, cost saving and employee satisfaction through a single approach.

Surely, as companies revisit their strategies post the pandemic, many will prioritize on reducing fixed asset investment and overhead costs by reducing dependency on office premises and resources. This will be easy for and suit those that have already invested in digital workforce during the pandemic. Tech giants like Facebook (FB - Free Report) and Twitter (TWTR - Free Report) , for instance, have given employees the option of working from home indefinitely.

And the need for face-to-face interaction to build relationships, facilitate collaboration and address complex problems that should come up over time, could be addressed through a more integrated system of in-person and virtual hybrid work.

So, the new normal shouldn’t take much time to become normal if advantages continue to come in without much of delay or disruption. 

3 Stocks Poised to Gain From Long-Term Remote-Working Trends

Zoom Video Communications, Inc. (ZM - Free Report) : The remote-working model has been helping this global video-first communications platform to geographically diverse its talent pool. The company has witnessed demand for its offerings soaring on the continuous work-from-home trend.

Zoom’s upcoming offering, Smart Gallery, uses AI to create a gallery view of in-room participants. It will be better suited for a hybrid work environment, where some employees work remotely and some from office.

The company carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for fiscal 2021 earnings is pinned at $2.89, having moved up 16.1% in the past 60 days. The consensus mark for fiscal 2022 earnings is pegged at $2.95, having been revised 22.9% upward during the same time frame. The stock has skyrocketed 397.8% over the past year.

PayPal Holdings, Inc. (PYPL - Free Report) : This technology platform operator and digital payments company is benefiting from the demand spike for contactless payment solutions amid the pandemic.

The company’s QR functionality, that allows touch-free payments to vendors on its app, is helping PayPal address this rising demand. The 2020 acquisition of Honey Science has equipped the company with new tools for contactless payment, helping it expand consumer engagement and increase sales to merchants.

The Zacks Rank #2 company’s shares have spiked a massive 113.7% in the past year. The consensus mark for the 2020 bottom line is pegged at $3.8 per share, remaining unchanged in the past 60 days. For 2021, the consensus mark for earnings has moved 0.44% north to $4.52 during the same time frame. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CrowdStrike Holdings (CRWD - Free Report) : This cloud-delivered solutions provider is riding on the surging demand for cyber-security solutions, urgency for security and networking products, and continued digital transformation and cloud-migration, amid the remote-working wave.

CrowdStrike’s portfolio strength, mainly the Falcon platform’s 10 cloud modules, boosts its competitive edge and helps add users. Further, the company’s next-generation antivirus EDR and device-control products are well poised to gain from the thriving remote work culture.

The stock has appreciated a massive 263.7% in a year’s time. The consensus mark for the fiscal 2021 bottom line is pegged at 22 cents, having been revised a whopping 266.7% upward in the past 60 days. For fiscal 2022, the consensus mark for earnings has moved 33.3% north to 32 cents during the same time frame.

The chart below shows the price performance of the aforementioned stocks over the past year.

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