COUR - 3 Work-From-Home Stocks to Buy as Remote Work Continues to Thrive

2023-04-25 06:10:08 ET

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Work-from-home stocks have weathered a rollercoaster ride as the pandemic-led tailwinds faded away.

These stocks flourished because of the rapid shift to remote work, but faced turbulence, as did the rest of the stock market. Remote work trends are here to stay, and savvy investors should eye work-from-home stocks as investing opportunities.

With companies increasingly adopting hybrid and remote work models for the long term, remote work stocks are bound to bounce back. A Gallup survey in June 2022 highlighted that 8 in 10 people are embracing hybrid or remote work.

A recent AT&T study projected the hybrid work model to skyrocket from 42% in 2021 to 81% in 2024 . In this context, I’ve earmarked three interesting work-from-home stocks offering investors excellent entry points in capitalizing on the massive remote work revolution.

Fiverr ( FVRR )

Fiverr (NYSE: FVRR ) has established itself as a resilient player in the ever-evolving freelance landscape. Unlike many pandemic-era darlings, the platform has maintained its relevance in the post-pandemic era.

With its robust virtual marketplace connecting companies with talented freelancers globally, it continues to ride the wave of the growing gig economy.

With the shift in the macro environment and spending sentiment in the past year, Fiverr has witnessed a dramatic slowdown in its operating results. Revenue growth on a year-over-year (YOY) basis is at 13.3% , roughly 74% lower than its 5-year average.

It has effectively adjusted its business model, evidenced by its strong profitability numbers. In its fourth quarter, the firm’s adjusted earnings per share came in at 26 cents, approximately eight cents higher than its consensus expectations.

Active buyers on the platform increased to 4.3 million, 100,000 higher than expected. With secular tailwinds in place, I expect Fiverr’s growth rates to fall in the double-digit range for the foreseeable future.

DocuSign ( DOCU )

DocuSign (NASDAQ: DOCU ) may have experienced a massive dip in its stock price last year, but you probably shouldn’t count it out just yet. As remote work gains traction in the business world, DocuSign’s innovative e-signature solutions stand to benefit immensely.

Beyond its e-signature prowess, DocuSign offers a wide variety of document management and workflow automation tools, enabling businesses to embrace streamlined efficiency.

Hence, in an age where agility is key, DocuSign presents an opportunity for investors looking to capitalize on the remote working revolution.

The company taps into a lucrative $25 billion market for e-signatures , with an additional $25 billion for other offerings. Since its IPO in 2018, it has experienced tremendous growth, with its customer base growing from around 400,000 to over 1.3 million.

Boasting a remarkable pro forma gross margin of 80% or more, the firm ranks among the elite in the enterprise software space. Despite the slowdown in revenue growth of late, forward estimates point to over 11% growth, which still exceeds its sector median by a considerable margin.

Coursera ( COUR )

Coursera (NYSE: COUR ) is a trailblazer in the online education sphere and has garnered an impressive following. These digital powerhouse partners with some of the most reputable colleges to deliver targeted, high-quality courses, delivering genuine learning experiences.

The pandemic supercharged Coursera’s growth rates, propelling its revenue base to a massive $293 million in sales from its 77 million registered learners in 2020.

While growth has moderated since then, it remains ahead of the curve, with a 53% increase in its learner base to 118 million last year .

Coursera’s certificates carry weight, garnering massive respect in academia and the workplace. As the future of work embraces digitalization and on-demand knowledge, Coursera is poised to redefine accessible education, offering its investors incredible upside ahead. In fact, Tiprank’s analysts believe that there is a 76% upside potential for COUR stock from current price levels.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

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