Best Stocks to Buy Amid the COVID-19 Crisis

Choose from the best stocks to invest in the month of September. Some of these companies are primed for high-octane growth, even in the midst of the COVID-19 pandemic.



PUBLISHED BY
Anna Domanska



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1 year ago




Zoom Video Communications posted strong results riding on the back of the Pandemic wave, which has forced most office workers to work-from-home. Zoom stocks went up 39% following the results and pushed the multi-billionaire status of the CEO Eric Yuan.

Zoom’s success has unleashed a wave of software companies providing similar cloud-based services and platforms and investors who are eager to piggyback on their success.

Best Stocks to Buy

Looking for top performing stocks? Here is a list of top stocks to invest – some of these top stocks come with expert recommendations.

Top stocks to invest in COVID-19

CrowdStrike

CrowdStrike Holdings, Inc. is a cybersecurity technology company that provides endpoint security, threat intelligence, and cyberattack response services. The security-software company reports second-quarter results on Wednesday. Analysts on Wall Street are feeling bullish on CrowdStrike. The company is quoting $135 a share at the moment and the analysts see a $145 to $160 on the upside and $110 to $115 on the downside for its shares.

The company projects revenue of $185.8 million to $190.3 million, with non-GAAP earnings per share ranging from a loss of 2 cents to break-even. CrowdStrike sees revenue for the full year ending in January of $761.2 million to $772.6 million, with a non-GAAP loss of 5 cents to 8 cents a share.

Zuora

Zuora is an enterprise software company for subscription-based services. Zuora’s applications are designed to automate recurring billing, collections, quoting, and revenue recognition. The company reports second-quarter results on Wednesday. Zuora projects total revenue of $72.5 million to $75 million, with a non-GAAP loss of 7 to 8 cents a share. The company beat the Zacks Consensus Estimate in the past four quarters, delivering an earnings surprise of 29.8%, on average.

The company recently launched Zuora Revenue, which is likely to have attracted new users. The updated solution enables companies to achieve a faster quarter close, minimize compliance risk and forecast the impact of business decisions on revenues.

It also launched its next-generation Zuora Central Platform. The company has a six-month free subscription allowing customers access to Zuora Workflow software for five specific pandemic related challenges at the workplace.

DocuSign

The leader in electronic-signature software reports its second quarter on Thursday. The company projects revenue of $316 million to $320 million, and sees full-year revenue of $1.313 billion to $1.317 billion.

Docusign has inspired confidence among the punters all the year through with the shares having gained nearly 85% in 2019. Its shares have gone up 190% so far in the year, making it one of the best performers in this segment.

DocuSign counts 18 of the top 20 global pharmaceutical companies, 10 of the top 15 global financial companies, and seven of the top 10 global technology companies among its customers. DocuSign controls an estimated 70% of the e-signature market, according to a report by Motley Fool. It has a customer base of 660,000.

The company has a whole slew of digital docs signing processes: DocuSign CLM, which automates workflows across the entire agreement process; Intelligent Insights that use artificial intelligence to search and analyze agreements by legal concepts and clauses; Gen for Salesforce, which allows sales representatives to automatically generate agreements.

Coupa Software

The business-spend management software company based in San Mateo, California, will report quarterly earnings on September 8. Coupa sees revenue of $118 million to $119 million, with non-GAAP profits of 6 cents to 8 cents a share. Coupa projects full-year revenue of $489 million to $491 million.

The company has performed well in the last four quarters. It beat the consensus report in the last quarter and delivered earnings $0.20 against an estimated price of $0.07, delivering a surprise gain of over 185%.

Zscaler

A provider of network access control software. It enables secure digital transformation by rethinking traditional network security and empowering enterprises to work from anywhere securely. The company reports its fourth quarter on September 9. Zscaler projects revenue of $117 million to $119 million, with non-GAAP profit of 2 cents to 3 cents a share.

Cybersecurity has benefitted from the work-from-home phenomenon. Though for Zscaler, it was not a smooth ride. The pandemic caused the stock to plummet and touch its 52-week low of $35. However, the stock recovered and jumped up 198.41% YTD to close at $141.13 on August 29.

The company has maintained its revenue growth through the year though it has been affected by the macroeconomic headwinds and an uneven sales cycle.

Zscaler estimates the total market opportunity for internet access and private access technologies to be $20.3 billion.

It says the company’s proprietary cloud-based applications are broad enough for the current distributed-network environment.

The company has a highly diversified customer base of over 3,900 customers across 185+ countries. It is busily adding new customers to its consumer base. Still, it has far to go as the latest figures show that only 32% of the company’s Global 2000 customers have purchased (Zscaler Private Access) or ZPA service to date.

Analysts advise caution on the stocks as they deem it overvalued at 53.2%.

Chewy

The web-based pet-food products retailer reports for the second quarter on September 10. The company projects revenue of $1.62 billion to $1.64 billion, with full-year revenue of $6.55 billion to $6.65 billion.

It is believed to be riding on the good fortunes of Zoom’s popularity too. Traditionally, spending on pets is recession-proof and the pandemic related lockdown may have added to the spendings on furry friendly goods. .Analysts are expecting revenue for the May-July quarter to have grown 43.4% and are eyeing a loss of $0.16 compared to per-share loss of $0.21 in the quarter a year ago. Revenue in the first quarter jumped 46% on a surge of 1.8 million customers, which is good news for its second-quarter report.

PagerDuty

The cloud-based help-desk software company integrates machine data and human intelligence to improve visibility and agility across organizations. It reports its second-quarter on September 3. PagerDuty projects revenue of $50 million to $51 million, with a non-GAAP loss of 6 cents to 7 cents a share. The company sees full-year revenue of $204 million to $213 million, with a non-GAAP loss of 25 cents to 30 cents a share.

PagerDuty counts Zoom as one of its top customers. So Zoom’s good fortune is sure to reflect on it. Jennifer Tejada on the company’s last earning call praise Zoom and said that PagerDuty’s automation and intelligence had made Zoom’s teams so efficient and effective that they’ve actually improved their time to resolve incidents despite the massive increase in people using Zoom. As of Q1, PagerDuty had 57 customers accounting for $500,000 or more in annual recurring revenue. And it has over 13,000 customers overall.

Slack (WORK)

 The workplace-collaboration software company reports second-quarter results on September 8. Slack projects revenue of $206 million to $209 million, with a non-GAAP loss of 3 cents to 4 cents a share. The company sees full year revenue of $855 million to $870 million, and a non-GAAP loss of 17 cents to 19 cents a share.

Slack has not been raising any excitement in the bourses with analysts pegging its performance as disappointing in the last four reports. They believe that Slack has not been able to take advantage of the WFH boom as the others in the market, though its platform is tailor-made for it.

Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

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