Stocks to buy

Most remote work stocks declined significantly as the coronavirus pandemic became less severe. And with the monetary policy becoming tighter in late-2021, these growth-oriented stocks saw even more turbulence. However, the remote work trend is far from over, and many remote work stocks are bound to turn a corner once market conditions allow.

Before the pandemic, around 6% of Americans worked remotely. Today, that figure stands at around 20%, according to recent estimates. So, while the pandemic did cause a significant surge followed by a retracement over the past two years, the remote work trend has only been accelerating, if you zoom out and look at the bigger picture (no pun intended).

Accordingly, it’s my view that most remote work stocks have their headwinds priced in, while their catalysts are often overlooked. Investing in the following three such stocks right now provide investors with excellent entry points to high-growth stocks that may not be under-appreciated for much longer.

ZM Zoom $80.77
FVRR Fiverr $42.64
DOCU DocuSign $65.49

Zoom (ZM)

Source: Michael Vi / Shutterstock.com

Zoom (NASDAQ:ZM) stock currently changes hands at around $80 per share, which is much lower than its pre-pandemic close of over $102. The company gained substantial popularity and was widely covered in the media as one of the biggest beneficiaries of the coronavirus pandemic. However, ZM stock peaked in Oct. 2020 and continued sliding for more than a full calendar year. Indeed, it appears much of this decline can be attributed to surging competition and a removal of strict quarantine measures over time.

Nonetheless, investors should realize that Zoom became a household name after the pandemic. The company dominates its sector, widely considered to be the most popular video conferencing platform worldwide. The world hasn’t fully healed from the pandemic, and Zoom will still deliver poor year-on-year results due to short-term trends and year-over-year comps. But as things stabilize, I see Zoom’s growth accelerating, which will justify a premium valuation for ZM stock.

This won’t happen overnight, but as the company re-shapes its business model into a more profitable one, it is set to gain the most from the long-term transition to remote work.

Fiverr (FVRR)

Source: Temitiman / Shutterstock.com

Fiverr (NYSE:FVRR) is another company that was initially a blockbuster business during the pandemic, but has declined significantly in the post-pandemic era. Fiverr operates in an industry that is remote-work related, but does not depend on the remote work trend to succeed. Rather, Fiverr is a platform where clients can find and pay freelancers for work, making this company among the most popular freelancing platforms before the pandemic.

Fiverr’s business model makes it well-suited to take advantage of the burgeoning freelance market. Many companies realize the benefits of hiring freelancers instead of full-time workers. These freelance workers are “individual contractors,” and companies do not have to spend anything on benefits for these workers. Thus, workplaces worldwide are adapting to the shift toward a so-called gig economy, which will benefit Fiverr in the long run.

Fiverr’s user-friendly platform has provided robust customer retention relative to its competitors. Clients can browse freelancers on Fiverr and see their ratings, which is the opposite of what clients can do on platforms such as Upwork (NASDAQ:UPWK).

As for the company’s financials, Fiverr’s top line continues to grow at a double-digit clip. Its growth rate is much lower than the growth during the pandemic, but the 88% decline from its peak means that the growth slowdown is more than priced in for the stock.

As for profitability, Fiverr’s management has clearly focused more on growth, and they could easily cut costs if needed. The company reported a $12 million loss in the third quarter of 2022, but that was because it spent $65 million on research, development, and marketing. That is money well-spent due to the market share Fiverr is capturing, and it’ll pay dividends years down the line.

DocuSign (DOCU)

Source: David Tran Photo / Shutterstock.com

DocuSign (NASDAQ:DOCU) is a cloud-based electronic signature and document management company. The company has seen its stock price plunge over the past year and a half. But as more businesses turn to remote work, I forsee a long-term uptrend for DOCU stock. Its electronic signature technology is particularly well-suited to the needs of remote workers, enabling them to quickly sign and send documents from any location with an internet connection.

In addition to electronic signatures, DocuSign’s platform offers various document management and workflow automation tools. Its products help businesses of all sizes reduce paperwork and streamline their operations. This has become especially important in the current business environment, where companies must be agile and efficient to stay competitive.

Unfortunately, DocuSign does not offer fantastic value despite its decline. However, its position as the go-to electronic signature platform will keep the business growing in the long term.

On the date of publication, Omor Ibne Ehsan 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.

Omor Ibne Ehsan is a writer at InvestorPlace. He is also an active contributor to a variety of finance and crypto-related websites. He has a strong background in economics and finance and is a self taught investor. You can follow him on LinkedIn.

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