Three Companies To Cash In On The Most Dynamic Sectors In 2021

But those forecasts were BC – before COVID. Now, millions of employees plan to work from home. Global Workplace Analytics says some 30% of the workforce will continue to work from home even after getting a vaccine.

And that plays to the advantage of cloud leader Salesforce.com Inc. (CRM). It was one of the first cloud-centric software firms and is mostly known for customer relationship management (CRM), hence the stock ticker.

It’s now setting itself up to be the go-to for online collaboration and communication. That’s why Salesforce recently said it will buy Slack Technologies Inc. (WORK), a pioneer in that field. News of the deal put CRM stock under selling pressure. However, I view this as a great buying opportunity. Salesforce has a history of making savvy buyouts that ultimately add to the bottom line.

The firm is growing yearly per-share profits at 36%. At that rate, they will double in two years.

Tech Catalyst No. 2 – E-commerce

Driven by the COVID closings of retail stores, global e-commerce sales are set to reach an astonishing $4.13 trillion. The U.S Census Bureau says consumers spent $211.5 billion through e-commerce channels just in the second quarter, the last period for full data. That was a nearly 32% increase in just three months.

In this space, I recommend Etsy Inc. (ETSY) as a very undervalued play. The firm is a leader in one-of-a-kind, handcrafted, and customized wares. It’s built around the notion that the item you’re buying is unique.

The firm is so nimble it sold 12 million face masks for over $133 million in just the first month of masks being talked about in America.

Now, the November news that a COVID vaccine is close did cause a sell-off in Etsy stock. It was a classic Wall Street overreaction on fears the vaccine will seriously disrupt e-commerce. To which I say bunk.

This year has marked a permanent shift in consumer behavior, one reason why Etsy crushed on third-quarter sales and earnings. Wall Street just gave you the chance to buy Etsy at a nice discount from its long-term trajectory.

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Note that this author has not disclosed any interest or commercial relationship with the companies discussed; do your own careful due diligence.

Disclosure: None.

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John D. Singleton 1 month ago Member's comment

$WORK was by worst stock by ever. Took me year to get my money back.