Demand for IoT, AI, VR and AR across industries is anticipated to grow substantially. These solutions are capable of embedding intelligence into business operations to facilitate employee and customer engagement. In fact, the COVID-19 pandemic only sped up the process of digital transformation, which now puts us in an era of remote working.
The past decade has seen significant growth in usage of smartphones, mobile devices and applications that promotes digitization. However, digital transformation is all aboutintroduction of more technologically-advanced products and services that connect and offer data-rich solutions.
Digital transformation helps streamline and integrate all business operations and also save time, effort, and resources by replacing traditional processes with automation. This, in turn, reduces the rate of errors made by users. It also mitigates risks that occur during marketplace fluctuation or in a geopolitical environment disturbance.
This is because the coronavirus pandemic has compelled several industries to maintain operations completely on technology as employees worked from home due to lockdowns. In fact, pharmaceuticals and healthcare operators across the world have resorted to AI and cloud technology to find a cure for the deadly virus.
COVID-19 Crisis Drives Digital Transformation
While some organizations had already opted for digital transformation, it was a challenge for many that lacked digital strategy and tools or infrastructure to get employees to work from their homes. And it is not just the tools or infrastructure, ensuring employee productivity and allowing teamwork across the geography has been another barrier.
Despite the disruptions in professional, personal, and community life that COVID-19 caused, it has opened opportunities for several businesses. Businesses can now work on digital experience and to enhance efficiency and productivity at the same time.
Many businesses have now learned to function efficiently without employees in the office. This scenario only propels the digital transformation market. Per a Grand view research report, the global digital transformation market size was valued at $284.38 billion in 2019 and is expected to see a CAGR of 22.5% from 2020 to 2027.
Additionally, the pandemic has inspired pharmaceuticals and healthcare institutions to improve their R&D investments in AI and cloud technology. Digitalization helps in sharing data, reports and speeds up research. For instance, Illumina, Inc. (ILMN - Free Report) claims that itshardware and software are prerequisites for the next generation of personalized medicines. In fact, the company holds a 70% market share in DNA sequencing.
AI can also help in reducing operating costs and increase customer satisfaction during the renewal process, claims, and other services in the insurance industry. With schools and universities closed due to lockdowns, VR/AR are assisting in e-learning.
5 Stocks to Buy
The coronavirus pandemic has forced businesses to shift from traditional to new digitalized business models. These digitally-transformed organizations easily adapt to the evolving technological landscapesand tackle sudden shifts in the industry. In fact, major part of the market growth is expected to be driven by investment in mobility, cloud platforms and big data technologies.
Given such a scenario, we have shortlisted five stocks that hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Citrix Systems, Inc. (CTXS - Free Report) help in content collaboration for various business and personal devices, endpoint management, and intelligent workflow.The company has an expected earnings growth rate of 1.7% for the current quarter against the Zacks Computer - Software industry’s projected decline of 23%. The Zacks Consensus Estimate for its current-year earnings has risen 3.9% over the past 60 days.
ServiceNow, Inc. (NOW - Free Report) offers an IT workflow platform that helps enterprises consolidate, manage and automate services. The company has an expected earnings growth rate of 27.7% for the current year against the Zacks Computers - IT Services industry’s estimated decline of 6.4%. The Zacks Consensus Estimate for its current-year earnings has moved up 7.1% over the past 60 days.
DocuSign, Inc. (DOCU - Free Report) provides a leading e-signature solution, helping businesses sign contracts and agreements digitally over the Internet securely. The company has an expected earnings growth rate of nearly 71% for the current year compared with the Zacks Technology Services industry’s projected growth of 7%. The Zacks Consensus Estimate for its current-year earnings has climbed 29.3% over the past 90 days.
The Trade Desk, Inc.’s (TTD - Free Report) platforms allow advertisement buyers to create, manage, and optimize data-driven digital advertising campaigns across display, video and audio on multiple devices, including computers, mobile devices, and connected TV.
The company has an expected earnings growth rate of 30.6% for the next year compared with the Zacks Internet - Services industry’s projected growth of 23.6%. The Zacks Consensus Estimate for its current-year earnings has moved up 7.5% over the past 30 days.
Okta, Inc.’s (OKTA - Free Report) Okta Identity Cloud platform offers a suite of applications that manage and secure identities. The company has an expected earnings growth rate of 60% for the current quarter against the Zacks Internet - Software and Services industry’s projected decline of 10.2%. The Zacks Consensus Estimate for its current-year earnings has moved up 45.7% over the past 60 days.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>