It has been an interesting time for stay-at-home stocks to say the least. At the beginning of the pandemic last March, they were hailed as heroes. Some would even say they were among the best stocks to buy at the time. Naturally, this was the case because countless people depended on their services while bunkered down at home. However, as the months passed, positive coronavirus vaccine news caused most investors to pull back from the top stay-at-home stocks. Understandably, with the distribution of a vaccine, there would be less need for people to rely on these companies. Fast forward to the present, you might be wondering if these stocks are still worth investing in now.
Well, as CNBC’s Jim Cramer said, “Every time we get hit with another wave of Covid infections these stocks will keep roaring. I bet they’re going to keep roaring until we all have been vaccinated.” In hindsight, he wasn’t too far off the mark. Current projections say it could take months or maybe even the better part of the year before we can get the pandemic under control. In this time, we will still have to stay home to help slow the spread of the coronavirus. Seasoned investors who know this have evidently turned to the top stay-at-home stocks in the stock market. Among them are companies like Papa John’s (NASDAQ: PZZA) and Netflix (NASDAQ: NFLX). This duo has kept people fed and entertained so far and have seen major gains because of it.
From streaming stocks to food delivery and teleservices, there is a stay-at-home stock for most aspects of our lives. The question remains as to whether these shares still have room to grow in 2021. If you’re convinced that they are, here is a list of stay-at-home stocks to watch in January 2021.
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Up first is live sport streaming giant FuboTV. The New-York based streaming platform also offers news, network television series, and movies. Since October 2020, FUBO stock has risen by over 500% at one point. However, the stock dipped by about 56% in late December thanks to negative analyst reports. On Tuesday, the stock soared by over 35% after its latest news. The stock has risen by another 6% at market open today.
On January 12, Fubo announced that it will be acquiring sports betting and interactive gaming company Vigtory. That’s not all. The company will also be launching a sportsbook later this year. CEO David Gandler explained, “Our free to play gaming experience, which will be available to all consumers, will build further scale to fuboTV, essentially acting as another lead generator for driving subscribers to our streaming video platform and, ultimately, our sportsbook. We not only expect sports wagering to become a new line of business and source of revenue, but we also expect that it will increase user engagement on fuboTV resulting in higher ad monetization, better subscriber retention, and reduced subscriber acquisition costs.” Clearly, Fubo is not resting on its laurels just yet.
For one thing, the company appears to be in the financial position to make moves like this. In its recent quarter fiscal, it reported year-over-year surges of 949% in total revenue and 559% in cash on hand. Adding to that, it released preliminary fourth-quarter figures last week as well. Among these figures was an expected 84% top-line guidance for total revenue. With the company on such a hot streak now, could FUBO stock be looking at another great year ahead? You tell me.DoorDash Inc
Following that, we have another hot 2020 IPO DoorDash. The food delivery company saw its shares rise by 89% on its first trading day last month. Given it holds the largest slice of the food delivery market pie in the U.S., I don’t blame investors for doing so. Most DASH shareholders were likely looking to hold as the stock dipped. Well, it shot up by over 25% this week thanks to news of the company’s activities in Japan.
Over the weekend, Nikkei reported that DoorDash was looking to fill a general manager position in Japan. Investors flocked to DASH stock as this move could imply that the company is looking to expand into the Japanese market. Rightfully so, as many consider the food delivery market as mostly untapped. Surprisingly, only 5% of restaurants in the region have some form of delivery service at the ready. A DoorDash spokesperson told Nikkei, “We’re always thinking about ways to enhance and scale our platform to serve more communities. We continually assess expansion opportunities, but there is nothing to update on at this moment in time.” It seems that DoorDash is not planning to slow down anytime soon. Should it play its cards right in Japan, DASH stockholders could be in for a treat in the long run.
In terms of financials, the company has also been pulling huge figures even before its IPO. Impressively, its annual revenue prior to going public showed sequential growth upwards of 200% for the last 3 years. As a matter of fact, DoorDash brought in over $1.6 billion in the first nine months of 2020. Nevertheless, investors seem to be getting a taste for DASH stock right now. Will you be following suit?Teladoc Health Inc.
Following that, we have Teladoc. For the uninitiated, it is a multinational virtual healthcare company. As you’d expect, its key services include telehealth and medical opinions. Pandemic or not, people will still fall sick. Because of this, Teladoc was able to provide healthcare services for those stuck at home. Looking back, TDOC stock has benefitted from this tremendously as it is up by over 130% in the past year. If anything, I’d say this warrants a closer look at its financials.
In its recent quarter fiscal posted in October, the company saw impressive gains. To elaborate, Teladoc posted year-over-year increases of 109% in total revenue and 149% in cash on hand. Astoundingly, it ended the quarter with over $1.1 billion in cash on hand. CEO Jason Gorevic said, “We are seeing significant market success and consistent growth in member visits throughout all of our commercial channels. With the addition of Livongo later this year, we will be creating a new category of whole person virtual care that will transform how people live healthier lives.” No doubt, investors were impressed by these figures. But, the real question is what the company has done with its recent merger and solid financials.
To investors’ excitement, the company has been making the most of its current resources. Earlier this week, Teladoc announced that its diabetic customers will receive continuous glucose monitoring insights. These new features make it easier for clients to keep track of their blood glucose levels which is a great play by Teladoc. Effectively, the company is integrating its services to account for Livongo’s customers as well. Could this mean big gains for TDOC stockholders moving forward? I’ll let you decide.