If I can use a phrase to describe this year’s events, I would first think of “anticipating the unexpected”. When we look at the stock market, the economic fluctuations caused by the pandemic are particularly obvious.Earlier this year, travel and retail stocks plummeted, while high-growth stocks related to the new “resident” specification, such as Teladoc Health (New York Stock Exchange code: TDOC), enlarge video (Nasdaq stock code: ZM)with Adobe (Nasdaq stock code: ADBE), A record high.
Then on Monday, the pharmaceutical giant Pfizer (New York Stock Exchange: PFE) Announced that the late and mid-term trial data showed that its candidate coronavirus vaccine is more than 90% effective in preventing COVID-1
Although this vaccine news is encouraging, the recent reality of tight supply and cold storage problems means that even if a vaccine is released before the end of the year, most of us will most likely not be able to use it in the next few months. In addition, while it is true that there are some pandemic coronavirus stocks that may lack the rationale for sustaining meaningful long-term growth, Teladoc, Zoom, and Adobe were all clear winners before the pandemic. This is why adding shares of these three stocks to your portfolio can help you get through your life.
As of November 12, Teladoc’s stock price has risen 122% so far this year, although the stock has fallen about 14% on Monday following the release of the vaccine news. It is no secret that telemedicine is a booming industry. Experts predict that the industry will achieve a compound annual growth rate (CAGR) of 25% between 2019 and 2027. In the nine months ended September 30, Teladoc reported that its revenue increased by 79% compared to the same period last year, and its platform visits surged by 163%.
As a leader in the digital medical field, there is no doubt that Teladoc has benefited a lot from the increasing demand for platform services due to the continuous restrictions on ordering at home and the coronavirus. However, long before the pandemic began, the company had achieved above-average growth. In the past five years alone, Teladoc has been reporting double-digit year-over-year revenue growth-78% in 2015, 59% in 2016, 89% in 2017, 79% in 2018, and 32% in 2019.
In the third quarter of this year, Teladoc’s year-on-year revenue increased by three digits to 109%, while visits increased by 206% over the same period last year. By the end of this year, management expects the company’s annual revenue to reach approximately US$1 billion, an increase of more than 80% over 2019 revenue. The management also stated that it is expected that by 2020, the number of paying members in the United States will reach 50 million to 51 million, and the number of visits on its platform will reach 10.6 million.
Teladoc acquired Livongo, a leader in applied health signals. The company reported a year-on-year revenue growth of 126% in the last quarter, which laid an unprecedented stage for the future of healthcare and its global influence was unprecedented. Teladoc’s management stated that the combination of the resources and services of the two companies is expected to shine in “projected revenue of approximately $1.3 billion in 2020.” Before the stock gets bigger, joining Teladoc now may not be a bad idea.
At the beginning of the pandemic, Zoom quickly earned the title of “hot stock”. From board meetings to online schools to virtual birthday parties, Zoom has always been the solution of choice for quarantining people worldwide. But the company blew analyst expectations out of the water long before the coronavirus hit. In the 2020 fiscal year ending on January 31, Zoom’s reported revenue increased by 88% year-on-year compared to fiscal 2019, reaching $622.7 million.
Zoom’s results for the first quarter of fiscal 2021 as of April 30 show that revenue increased by 169% year-on-year, while the company’s second-quarter revenue as of July 31 increased by 355% compared with the same period last year. The cash-to-liability ratio on Zoom’s balance sheet is also manageable. The cash and cash equivalents reported by management were approximately US$749 million, while the company’s total liabilities for Zoom in the second quarter report were US$1.4 billion.
At present, the market reflects the fact that some investors worry that once the vaccine is approved, Zoom may lose a lot of steam. I think this is an overreaction. We are currently facing an increase in coronavirus cases worldwide and a long winter ahead, and we know that unrestricted use of vaccines still has a long way to go. Although the trend of working from home may change in the future, many people may stay. Global Workplace Analytics estimates that by the end of next year, 25% to 30% of workers will work from home more than one day a week.
Although Zoom’s stock price has fallen from last week, the company’s transaction price is still 531% higher than in January. And even though the company has achieved impressive growth, it is difficult to ignore the fact that Zoom has been overvalued for most of this year-the stock currently trades at a price-to-earnings ratio of 550 times, which is incredible. In the next few months, it may be a good time to snap up this unstoppable stock at a slightly more affordable price.
Whether there is a pandemic or not, Adobe consistently delivers outstanding financial performance. To briefly introduce, the company reported that its 2017 fiscal year revenue increased by 25% year-on-year, while in fiscal year 2018 and fiscal year 2019, it increased by 24% year-on-year. In the first, second, and third quarters of this year), Adobe reported revenue growth of 19%, 14%, and 14%, respectively, compared to the same period in fiscal 2019.
Increasing demand for Adobe cloud solutions and an increase in Digital Experience subscriptions have been the company’s steady source of income this year. The third quarter (as of August 28) was a particularly good quarter for the company. Chief Executive Officer and President Shantanu Narayen said:
Adobe delivered the best third-quarter performance ever in a challenging macroeconomic environment, demonstrating the global demand for our innovative solutions. We are confident that our leadership in the creative, document and customer experience management categories will drive continued growth in 2020 and beyond.
In the last quarter of fiscal 2020, management’s goal is total revenue of $3.4 billion, more than twice its third-quarter revenue figure.
The company’s stock is not cheap. The stock is currently trading at approximately $460, which is approximately 40% higher than its January share price. However, as one of the few real anti-recession gems on the coronavirus stock market, Adobe is a permanent growth stock that you can buy immediately and hold for decades.