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Coronavirus Ramps Up Technology Innovation: 5 Top Picks

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There's more to the coronavirus pandemic than meets the eye. While this global health crisis has wreaked havoc on economies and industries, it has also driven the transition to remote working and services. In fact, this pandemic is going to have a long-lasting impact on several businesses.

In the past few months, lockdowns imposed to curb the COVID-19 widespread have driven innovation. This has created a trend, which is defined byworking from home, online education, digital health, and has also boosted demand for online retail.

Crisis-Driven Growth in Technology

As we know, crisis breeds innovation. As during a war, innovation in machine guns, aircraft, communication line are at the forefront, this pandemic has led to radical changes in every facet of human life.

With social-distancing orders in place, technology has helped provide flexibility in retail. While chatbots help address customer queries, AI gathers data to enhance relationship with customers. In fact, technology can now analyze the requirement of a specific product and notify operators about the inventory requirements. Furthermore, contactless delivery with the help of robots and virtual assistance sessions incurb-side pickup points are helping retails operate efficiently, even with minimum staff.

COVID-19 has changed the way businesses operate, leading employers to rely more on the remote working tools to maintain business continuity. The boost in remote working has led to technological innovation in various video-conferencing apps and cloud-based software. Additionally, companies are now looking for technologies that are faster, more cost effective and productive, and allows for more creativity.

Meanwhile, as businesses are going online and cloud is helping connect employees across the globe, security is of primary concern. Digital infrastructure protection companies like ZScaler Inc. (ZS - Free Report) are seeing significant demand during the crisis, with its shares rising more than 100% in the last three months.

From telehealth to remote monitoring tools, digital health is developing at warp speed. These days, insurance companies are paying customers to use digital health services and thus hospitals are reporting a massive rise in virtual visits. Some even claim that remote health care and monitoring, which were nearly a decade away, is now just a matter of a few months.

5 Stocks to Buy

Given the current scenario, technologieswhich can address pressing issues erupting from the pandemic, are poised to grow. We have shortlisted five stocks that are expected to return well.

Zoom Video Communications, Inc. (ZM - Free Report) provides a video-first communications platform. The company’s expected earnings growth rate for the current year is more than 100% compared with the Zacks Internet - Software industry’s projected earnings growth of 1.9%.

The Zacks Consensus Estimate for its current-year earnings has moved upmore than 100% over the past 60 days. Zoom Video flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Fortinet, Inc. (FTNT - Free Report) provides security solutions to all parts of IT infrastructure. The company has an expected earnings growth rate of 13.8% for the current year against the Zacks Security industry’s estimated decline of 14.9%. The Zacks Consensus Estimate for its current-year earnings has moved 8.1% up over the past 60 days. Fortinet sports a Zacks Rank #1.

Boxlight Corporation (BOXL - Free Report) is an education technology company that develops, sells, and services interactive classroom solutions for the education market. The company has an expected earnings growth rate of 54.6% for the current quarter against the Zacks Technology Services industry’s estimated decline of more than 100%.

The Zacks Consensus Estimate for its current-year earnings has climbed 33.3%over the past 60 days. Boxlight holds a Zacks Rank #1.

Yext, Inc. (YEXT - Free Report) is a search experience cloud company that engages in delivering brand-verified answers that puts businesses in control of their facts online. The company that belongs to the Zacks Technology Services industry has an expected earnings growth rate of 36.8% for the next quarter. The Zacks Consensus Estimate for its current-year earnings has moved 10.4% up over the past 60 days. Yext flaunts a Zacks Rank #1.

Livongo Health, Inc. (LVGO - Free Report) provides an online healthcare platform that enables people to maintain, record and share data with doctors. The company has an expected earnings growth rate of 97.8% for the current quarter compared with the Zacks Medical Info Systems industry’s estimated growth of 8.2%.

The Zacks Consensus Estimate for its current-year earnings has climbed 57.1%over the past 60 days. Livongo Health carries a Zacks Rank #2 (Buy).

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021. 

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