Zoom Or DocuSign: Which Is The Better Work-From-Home Stock?

The leading pandemic and work-from-home stocks have had spectacular years so far.

Companies that made work-from-home easier have seen profits shoot higher. In some cases, these changes will be a permanent part of the business and personal landscape.

And two companies that have ridden this trend to new heights are Zoom and DocuSign. With fewer people commuting to offices and more instead conducting business online, these companies have been the breakout stars of 2020.

But if you could only invest in one of these companies going forward, which is the better stock to buy now?

Today we're answering that question.

Here's what makes each of these some of the best stocks of 2020 – and which one makes the best option for your portfolio…

Zoom Stock vs. DocuSign Stock

Zoom Video Communications Inc. (NASDAQ: ZM) is an excellent example of a permanently changed company. Zoom has gone from a novel idea to a required tool for school and business. Families have used it to stay in touch since Sunday dinner together was not an option when we were all shut-in.

Zoom's revenue and profits have exploded higher. Earnings are up more than 600% this year and are accelerating. In the most recent quarter, profits rose by more than 3,000%. Analysts can't keep up, and Zoom has surpassed the consensus estimate by at least 100% in each of the last four quarters.

Wall Street is scrambling to raise estimates to reflect how strong the business has been since the pandemic hit our shores. The estimates for full-year 2020 profits have been raised 25 times in the last month alone.

Zoom is one of the few stocks that didn't sell off very much when the economy was shut down in March. As the market fell by more than 40%, Zoom barely budged.

While 95% of all stocks fell below their moving average during the sell-off, Zoom was one of the magic 5% that did not fall below that significant support line. Traders who took note of that powerful performance have made an enormous amount of money since.

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Disclosure: None.

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William K. 1 month ago Member's comment

This is an unusual post in that it asks about making an either-or choice. If I had been really wise I would have bought BOTH before they took off. Zoom because it has huge appeal to almost everybody, being like Skype but without the grief, and DocuSign, because it has a product that business will find very useful, even valuable.

But Zoom would not be for the long term because at some point it will certainly level off, while DocuSign should be able to deliver good dividends for many years.