One of the main characteristics of stock markets is that there is always a bull run in some stocks or sectors, regardless of economic conditions and other factors against them.
Even with the arrival of the new coronavirus pandemic, the stock market held its own. Sectors such as home entertainment, video games, e-commerce, and pharmaceuticals benefited from the confinement.
Although 47.9% of the population in the United States is vaccinated, the threat of COVID-19 is still present. The delta variant, one of the most contagious, has gained ground in the country. Infections and deaths have risen rapidly in some states with low vaccination rates such as Arkansas, Texas, and Nevada.
Also, the variant has generated outbreaks in Japan, Australia, and the United Kingdom, countries that, like the U.S., have high vaccination rates. If the increase in infections continues, the world will move further and further away from herd immunity and the end of the pandemic.
In the face of this scenario of uncertainty, it is important to look for alternatives to protect our finances. Therefore, we bring for you the best stocks to invest in case the third wave of coronavirus picks up strength.
After “unprecedented” growth in 2020, Zoom Video expects the positive momentum to continue. The company’s founder, Eric Yuan, believes that “the future is here with the rise of remote work trends.” Therefore, a possible third wave could extend the work-from-home craze.”
ZM stock has been relatively flat over the past six months. From a growth perspective, Zoom Video reported revenue of $956.2 million for the first quarter of 2022. This represents a year-over-year increase of 191%.
Recently, the company acquired Kites GmbH, which is focused on developing machine translation solutions. This will help Zoom improve productivity and meeting efficiency by “providing multilingual translation capabilities for users.”
The home exercise saw significant growth during the pandemic. A possible third wave of COVID-19 would likely spur further gains. That’s why NLS stock is an attractive option for investors.
Nautilus plans to surpass 250,000 members by the end of 2022. In addition, the company aims to achieve up to two million members by 2026. It also expects to earn $1 billion in revenue and achieve sustainable operating margins of 15% by this year.
Another highlight is the growth of the company’s retail segment. By the first quarter of 2022, Nautilus is expected to have an order backlog of $179 million. Thanks to strong demand for its fitness products, the retail segment is likely to be a key growth driver.
Netflix stock has underperformed over the past 12 months. One reason is intense competition in the streaming business. However, in the first quarter of 2021, the company posted revenue of $7.2 billion, which was up 24% year-over-year.
The company also generated a free cash flow of $2.4 billion. The main driver of Netflix’s growth is new content. Robust cash flow generation is likely to ensure aggressive content creation.
However, new content development has been delayed due to the pandemic. The third wave of coronavirus would likely affect the launch of new content. Should the transition from linear television to streaming continue, then the Netflix market will continue to increase.
Online gaming and entertainment have also benefited from confinement. If the third wave of COVID-19 intensifies, the positive trends for the video game industry will increase.
ATVI stock is among the most attractive stocks to buy in the sector. With a current price-to-earnings ratio of 24.8, the stock looks poised for healthy business growth and higher prices.
The company’s revenue beat expectations for the first quarter of 2021. Growth was driven primarily by Activision, whose revenue increased 72% year-over-year. At the end of the quarter, the company’s monthly active users were 435 million.
From a financial standpoint, the company reported net cash of $3.28 billion through March 2020. However, the net cash position increased to $5.87 billion in March 2021. On the other hand, Activision Blizzard plans to hire more than 2,000 developers over the next two years.