The coronavirus pandemic has shifted the way we think about virtually everything. This includes the benefits of working remotely.
Before the COVID-19 pandemic, 4.7 million people were already working remotely in the U.S. That was up from just 0.8 million in 2015. But in 2020, once COVID-19 was declared a pandemic, 88% of organizations worldwide encouraged or made it mandatory for their employees to work from home.
77% of remote employees say they’re more productive when working remotely, while around 75% of people who work from home say they do so because there are less distractions. 80% also reported they experience less work-related stress.
The reality is this work-from-home trend is not going anywhere anytime soon. An amazing 99% of remote workers said they would like to continue doing so to some extent. Looking forward, an estimated 25% to 30% of the workforce is estimated to work remotely by the end of 2021. That’s up from just 3.4% before the pandemic!
Perhaps the most notable “pandemic play” to come out of this work-from-home trend is Zoom Video Communications (ZM). The go-to online communication platform has made it easy for people to interact face-to-face with each other during the pandemic.
Interestingly, what has helped ZM expand its platform offerings is its use of artificial intelligence (AI).
For example, the company uses an AI-powered transcript and meeting note recorder. This allows it for live speech recognition to record meetings in real time and “translate” the spoken words into text.
Zoom also uses AI to improve its fun background options, where it now offers a mixed reality virtual background. This includes JPEGs, PowerPoints and even other videos. This is done with facial recognition technology, which can detect how many people are in the room versus a video or background.
The demand for the company’s products was evident in its third-quarter earnings report, which saw total revenue of $777.2 million and adjusted earnings of $297.2 million, or $0.99 per share. That represented 367% year-over-year revenue growth and 1,000% annual earnings growth. The consensus estimate called for earnings of $0.79 per share on $693.95 million in revenue, so Zoom crushed earnings estimates by 25.3% and revenue forecasts by 12%.
I look for even stronger results in the company’s fourth-quarter earnings report, scheduled to be released on March 1. Currently, analysts are expecting earnings of $0.79 per share on revenue of $811.77 million. This represents a stunning 426.7% year-over-year increase in earnings and a 331.2% rise in revenue from the fourth quarter in 2019.
As I discussed last Saturday, not all companies who use AI are worth your time or money. But companies with great fundamentals and superior business models, like ZM, are. That is why I recommended it to my Accelerated Profits subscribers on May 8, 2020. Since then, the stock has risen about 170%. In comparison, the S&P 500 and Dow are up 34% and 33.6%, respectively.
And ZM is just one of the triple-digit winners on my Accelerated Profits Buy List right now. In total, there are 18 stocks that are currently up in the triple digits, 29 stocks in the double digits and 6 stocks in the single digits out of the 62 stocks on the Buy List. The total average return for my Accelerated Profits Buy List is currently sitting at around a 77% return in total.
You don’t want to miss out on the “next Zoom” stock to pop – and my Accelerated Profits Buy List is chock full of stocks with significant upside potential. While the fourth-quarter earnings season might be winding down, several of my Accelerated Profits stocks have still yet to unveil their most-recent results, so there is no better time to jump in.
If you haven’t already, I encourage you to do so now so you can take advantage of my latest Buy Alerts, including two brand-new recommendations I released on Wednesday. Both companies have triple-digit forecasted earnings growth. And both have been firing on all cylinders over the past few months.
All told, I have unveiled eight new recommendations in the last four weeks. These stocks have trekked nicely higher since I added them to my Accelerated Profits Buy List, but it’s not too late to invest. One of my latest recommendations will be reporting its most-recent results on March 5, so you still have time to buy before its earnings report dropkicks and drives the stock higher.
The Editor (Louis Navellier) hereby discloses that as of the date of this email, the Editor (Louis Navellier), directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
Zoom Video Communications (ZM)