For Immediate Release
Chicago, IL – April 8, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Dropbox, Inc. DBX, Alibaba Group Holding Ltd. BABA, Chegg, Inc. CHGG and The Rubicon Project RUBI.
Here are highlights from Tuesday’s Analyst Blog:
4 Internet-Based Stocks to Buy for the Coronavirus Lockdown
The rapid spread of the novel coronavirus has been rattling stock markets globally. Although the spread of the virus seems to be slowing down in China, it is picking up pace in other parts of the world, including the United States. Notably, despite most of the country being under strict stay-at-home orders, President Donald Trump recently warned, "there will be a lot of death" as the U.S. faces its "toughest week" to date in its fight against the coronavirus pandemic. Moreover, on Mar 29, the President extended the stay-at-home and social distancing guidelines until the end of April.
This worldwide black swan event has led to lockdowns in most parts of the world, driving the use of the Internet and Internet-based entertainment and services. Recently, the entire of India has been put on a 21-day lockdown to help curb the rapid spread of the virus, forcing big companies to issue work-from-home facilities for employees. Moreover, entrepreneurs are rapidly coming up with ways to keep customers engaged with the Internet.
With the COVID-19 outbreak causing global disruptions in economic, educational, medical, and civic welfare, Internet access has become critical not only to keep the public informed but also to let people work from home, attend school remotely and keep in touch despite social distancing.
On Mar 13, more than 65 broadband and wireless companies signed the “Keep Americans Connected Pledge” launched by the Federal Communications Commission (FCC) that implored major internet providers across the United States to ensure that Americans have access to the Internet.
On this note, we have picked four Internet-based services stocks, which are poised to benefit significantly from the COVID-19-incited panic.
To narrow down the list, we have selected those with a Growth Score of A or B. Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
Dropbox, Inc. offers a platform that enables users to store and share files, photos, videos, songs and spreadsheets. A strong focus on product innovation and the introduction of features like Dropbox Spaces, Paper and Extensions are anticipated to expand its user base. Further, integration with leading applications like Zoom Video, Slack and Atlassian will likely expand the Dropbox paying user base.
Dropbox currently has a Zacks Rank #1 (Strong Buy) and a Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alibaba Group Holding Ltd. owns a cloud-computing company, Alibaba Cloud. The platform offers tailored cloud solutions. Alibaba Cloud offers an AI-powered computing platform and super-computing cluster for free to power global research institutions, helping them accelerate viral gene-sequencing, protein-screening and other research to treat or prevent the coronavirus.
The company recently launched several AI technologies and cloud-based solutions that help analyze CT images within 20 seconds, diagnosing suspected novel coronavirus cases with an accuracy rate of 96%.
Alibaba currently has a Zacks Rank #2 (Buy) and a Growth Score of B.
Chegg, Inc. is a social education platform provider that rents and sells print textbooks and provides eTextbooks, supplemental materials, homework help, textbook buyback, courses, college admissions and scholarship services, among others.
The pandemic-led house arrest has led online education to trend northward. Remote schooling is a necessity in this time of crisis. It keeps students engaged and helps them continue their education.
Currently, Chegg carries a Zacks Rank #2 and a Growth Score of A.
The Rubicon Project provides technology solutions to automate the purchase and sale of digital advertising inventory for buyers and sellers in the United States and other countries. The company is expected to continue benefiting from the momentum in programmatic ad buying and continued strength in mobile video and mobile in-app spending during this coronavirus-induced stay-at-home period.
At present, the stock flaunts a Zacks Rank #1 and a Growth Score of A.
The COVID-19 scare is expected to send several other parts of the world on a state of stay-at-home as the virus further spreads across the globe. This is likely to boost most Internet-based services, as school, work, shopping and entertainment are expected to soon take place primarily online.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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