Back to top

Image: Bigstock

Dodge the Coronavirus Crisis With These 4 Stay-At-Home Stocks

Read MoreHide Full Article

The rapidly growing number of coronavirus-infected patient cases across the globe has roiled the equity market. With drugs and vaccines many months away, investors expect global businesses to witness longer and steeper downturns.

However, there could be some respite if the spread of the virus is contained. In wake of this scenario, governments are urging people to strictly adhere to lockdown directives. Hence, it’s advisable to keep an eye on "stay-at-home" stocks that are well poised to gain and are immune to the virus’ impact.

Virus Fears Intensify

In view of the coronavirus outbreak, which has been classified as a pandemic by the World Health Organization, more governments across the world are considering and extending strict nationwide lockdowns.

Per compiled data of Johns Hopkins University, since the virus was first detected in China late last year, the total number of infected people across the world has increased to 860,181, as of Apr 1. The virus has already spread across 180 countries, killing more than 42,000 people, the compiled data suggests. On the bright side, the data shows recovery of 178,359 infected people.

Stocks to Gain From the Pandemic

To combat the outbreak, people are being increasingly advised to avoid mass gathering. This has brightened up prospects of companies that are helping people to stay connected. In other words, the businesses of such companies prosper if people spend more time at home.



We are presenting two stocks with a Zacks Rank #2 (Buy) and two with a Zacks Rank 3 (Hold) that are well positioned to gain. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Headquartered in Los Gatos, CA, Netflix Inc. (NFLX - Free Report) is a leading provider of streaming services. With more people staying at home, streaming could be their in-house entertainment. Thus, the #2 Ranked stock is expected to witness an expansion in its subscriber base. We expect the company to see earnings growth of roughly 47% in 2020.

With mounting demand for in-house entertainment services, video streaming service providers are competing to boost their customer base. Being a leading provider of content delivery network services, Akamai Technologies Inc. (AKAM - Free Report) is well positioned to grow, since the company provides the necessary platform to the video streaming service providers to compete. Notably, the stock, with Zacks Rank #2, is likely to see earnings growth of almost 9% in 2020.

DocuSign Inc. (DOCU - Free Report) , headquartered in San Francisco, CA, is a popular name for authenticating documents over the Internet through electronic signature. The stock, with Zacks Rank of 3, is likely to see earnings growth of almost 71% in fiscal 2021 (read more: Coronavirus Drives Work-From-Home Trend: 5 Stocks to Gain).

In the wake of limited movement and home confinement, there is growing demand for digital doctors. Being a provider of virtual access to high-quality care and expertise with a portfolio of services and solutions, Teladoc Health, Inc. (TDOC - Free Report) , headquartered in Purchase, NY, is a well-known name in the space. In 2020, the #3 Ranked stock is likely to see bottom-line growth of almost 19%.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.

This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.

See their latest picks free >>