Many customers and companies celebrate the reopening of the American economy. While the schedule varied, the first states began to implement stay-at-home orders in mid-March, while others followed suit until early April. After two months or more trapped at home, consumers are eager to return to life as usual.
However, reports of new cases of COVID-19 and hospitalizations leave some health officials wondering if another blockade may be necessary to slow the renewed spread of the virus.
Investors seeking coverage against the possibility of additional orders to stay home should consider companies that rejected the pandemic to reach new all-time highs.
If you have $ 3,000 you don’t need for immediate expenses or your emergency fund, consider putting it to work in these solid businesses, even when your stocks reach new highs.
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Teladoc brings virtual healthcare to the mainstream
The possibility of seeking the advice of a health professional without leaving the comfort of your home is having a moment. Even before fear of contracting the new coronavirus sent patients looking for another option, telemedicine was already taking notice. Teladoc (NYSE: TDOC) is the leader in the rapidly growing field of telehealth, allowing any patient with a desktop or mobile device to have a video conference with a doctor or nurse.
In 2019, Teladoc’s annual revenue grew 32%, but its patient visits increased at an even faster rate, 57% compared to 2018. During the first quarter, with the pandemic in full swing, Teladoc’s numbers they sped up. Admissions increased 41% year-over-year, while total patients soared 92%.
While some believe that patients who flock to telemedicine are transient, recent research suggests new users are not going anywhere. In a survey of 1,800 patients, 50% of respondents said they had used telehealth in the previous three months, 71% said they are willing to use it again today, and 83% said they plan to continue using telemedicine in the future.
This illustrates why investors should buy Teladoc shares, even when they hit new all-time highs, whether new locks are announced or not.
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International markets are a great opportunity for Netflix
Netflix (NASDAQ: NFLX) It’s another example of a market-leading company that got an extra boost from stay-at-home requests, but the best may yet to come for the streaming pioneer.
Netflix ended 2019 with 167 million subscribers, up 20% year-over-year, while revenue grew 30% even more impressive during the same period. In the first quarter, which historically is the slowest for growth, transmission customers shot up to almost 183 million, up 23% year-over-year, while revenue grew 28%.
Netflix is guiding for even higher subscriber growth in the second quarter, forecasting 7.5 million paid memberships. That would put the total at over 190 million and represent a 26% rise. Some analysts feel that that number is too conservative. SunTrust analyst Robinson Humphrey Matthew Thornton investigated search data, app downloads, and specific regional data suggesting that Netflix will likely add 9-12 million new net subscribers.
After seeing the vast amount of programming available on the video streaming technology platform, consumers will likely loathe going back to their old viewing habits. That’s a good argument for buying Netflix before additional orders to stay home are issued.
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Shopify drives the e-commerce revolution
The most obvious impact of the pandemic was that it accelerated the shift to electronic commerce. Consumers started shopping online instead of hiking to retail stores. Too many merchants were ill-prepared for the sudden change in consumer behavior and the current toward online shopping. Luckily for them Shopify (NYSE: SHOP) He was there to answer the call.
Many traditional retailers with no online presence were forced to add a digital component to their business on the go if they wanted to survive. Shopify saw unprecedented demand for its services, which include helping merchants set up and manage e-commerce operations. The company also provides access to other critical business services, including inventory management, payment processing, and discounted shipping and fulfillment.
Shopify was already in an enviable position. Total revenue for 2019 grew 47% year-over-year, driven by more than 1 million merchants. Fast forward to the first quarter and Shopify maintained its impressive growth rate at 47%, even in what has historically been a slower quarter. New stores created on its platform grew 62% between March 13, 2020 and April 24, 2020, compared to the previous six-week period, as merchants were quick to offer their products online.
Most retailers are unlikely to give up on these new sources of revenue as the momentum from these additional sales carries over to the next few quarters. This gives investors a preview of the future of Shopify, close or not.
The small print
It is important to note that additional requests to stay home are not an inevitable conclusion. Many consumers and businesses are pushing for a permanent reopening of the economy. That said, each of these companies was already firing on all cylinders before the pandemic, suggesting that even if additional locks never come, these actions could continue to win.
