3 actions (unnamed zoom) to enlarge your portfolio returns in 2021

[ad_1]

Focus on video communications ZM is arguably one of the biggest winners in the coronavirus-induced lockdowns, home shelter guidelines, and the trend towards social distancing. The stock has soared 489.8% since the start of the year.

Demand for this company’s Zacks Rank # 3 (Hold) cloud-native unified communications platform, which combines video, audio, phone, screen sharing and chat functionality, has increased dramatically thanks to working from home and to the online learning wave.

In addition to remote workers and online educators, Zoom Video solutions are quickly adopted by telehealth providers. Remote diagnosis helps them adhere to social distancing standards without compromising patient health care.

Since vaccination programs will take several months to reach a large portion of the world’s population, social distancing measures are needed to keep the infection rate stable. This will require continued work from home and online learning, driving Zoom’s revenue growth.

Nonetheless, Zoom’s current momentum will likely be difficult to sustain in 2021, as a significant number of employees are expected to take over, according to this report from real estate firm JLL, as cited by CNBC. It should be noted that three in four workers want to join the back office when the health risk linked to the coronavirus decreases. In fact, a hybrid model that includes a few days of working from home is likely to be popular among employees.

While the hybrid model is beneficial for Zoom, the intensifying competition from the likes of Microsoftthe MSFT teams and CiscoCSCO Webex is a headwind.

3 best bets than zoom for 2021

Here we select three fundamentally strong stocks that offer good investment opportunities compared to Zoom in 2021.

Logitech LOGI takes advantage of the strong performance of its video games and collaboration units. In addition, the PC peripheral market is experiencing strong traction, which contributes to the growth in revenue. Additionally, the demand for gaming products has exploded due to the growing popularity of online video games and e-sports in a pandemic-led stay-at-home environment.

In addition, the thriving cloud-based video conferencing services will continue to be the key enabler of the prospects for this Zacks # 1 company. You can see The full list of current Zacks # 1 Rank stocks here.

Additionally, the growing adoption of new mobile platforms in mature and emerging markets is fueling demand for Logitech peripherals and accessories. Remarkably, the company has made innovative offerings such as the highest performing mouse and keyboard switches, the wireless mouse with the longest battery and multi-device keyboards, among others.

In addition, Logitech’s partnerships with Zoom as well as with cloud platform providers like Microsoft and Google are major positives.

Zacks’ consensus estimate for the company’s 2021 tax profit of $ 15.27 billion has been revised 64.8% up to $ 4.12 a share in the past 60 days .

Logitech International SA price, consensus and EPS surprise

Surprise-Price-Consensus-EPS-Surprise Graph from Logitech International SA | Quote from Logitech International SA

Dropbox DBX builds on a growing demand for its team collaboration tools through which users can share files, photos, videos, songs, and spreadsheets. The focus on product innovation and the introduction of solutions such as updated Dropbox Spaces, HelloSign, Passwords, Vault and Computer Backup is expected to be expected. expand its user base.

Strong demand for cloud storage, triggered by the coronavirus-induced work-from-home wave, has acted as a tailwind for this $ 9.73 billion company. Additionally, integration with major apps like Zoom, Slack, and Atlassian will likely expand Dropbox’s paid user base.

In addition, Dropbox’s innovative “Virtual First” initiative, where its employees will work from home most of the time and meet occasionally to collaborate as a team, is expected to reduce costs. The company’s plan to move to hiring in low-cost regions is likely to boost profitability.

Zacks’ consensus estimate for 2020 earnings stands at 88 cents per share, up 12.8% in the past 60 days. The consensus mark for its 2021 earnings is set at $ 1 per share, after being revised up 9.9% in the same period.

Dropbox, Inc. Price, Consensus, and Surprise EPS

Dropbox, Inc. graph-price-consensus-eps-surprise | Quote from Dropbox, Inc.

CrowdStrike holdings CRWD is benefiting from the growing demand for cybersecurity solutions due to the multitude of data breaches and the growing need for security and network products as part of the remote work trend driven by the COVID-19 pandemic.

Additionally, the continued digital transformation and cloud migration strategies adopted by organizations are key growth drivers for this Zacks Tier 2 company. The strength of CrowdStrike’s portfolio, primarily the 10 cloud modules of the Falcon platform, strengthens its competitive advantage and helps add users.

Additionally, the company’s next-generation antivirus, EDR, and device control products are well positioned to win in the burgeoning remote work culture.

CrowdStrike has a market cap of $ 39.78 billion. The consensus mark for its 2020 net income is set at 22 cents per share, up 266.7% in the past 60 days. For 2021, the earnings consensus mark has shifted 45.5% north to 32 cents a share over the same period.

CrowdStrike Holdings Inc. Price, Consensus, and Surprise EPS

CrowdStrike Holdings Inc. Price, Consensus and Surprise on BPA — CrowdStrike Holdings Inc. Price, Consensus, and Surprise EPS

CrowdStrike Holdings Inc. graph-price-consensus-eps-surprise | Quote from CrowdStrike Holdings Inc.

Top 10 Zacks stocks for 2021

In addition to the stocks discussed above, would you like to know our top 10 tickers for all of 2021?

These 10 are painstakingly handpicked from over 4,000 companies covered by the Zacks rank. These are our main choices to buy and keep. Start your access to the new Top 10 Zacks stocks >>

Want the latest recommendations from Zacks Investment Research? Today you can download 7 best stocks for the next 30 days. Click to get this free report