11 Best Work From Home Stocks To Buy

At first glance, HubSpot might seem just like any other customer relationship management tool out there on the market. But as anyone who’s used it can tell you, HUBS is so much more – which goes some way to explaining the firm’s stratospheric share price rise from around the $100 mark in early 2020 to its recent high of $850 in November 2021.

 

But such a stellar performance in just less than two years doesn’t come without its own punishment. The company’s lost nearly half its value since then, and now trades at a little above $450.

 

Ironically, the firm’s loss began around the same time that news broke that Amazon had internally pitched the idea of buying HubSpot for $38 billion – which, incidentally, is significantly more than its current market cap of $21 billion.

However, investors shouldn’t be discouraged by this development at all. HUBS is still the excellent company it’s always been, as its financial metrics go to prove. Its gross profit margin of 80% is especially attractive, as is its year-on-year revenue growth of 45%.

 

Most importantly, though, HUBS has dramatically expanded its offering by moving out from just marketing services and into sales, operations and content management systems too. As a consequence, its total addressable market has also widened, which should drive revenue growth upwards well into the future. 

 

Bandwidth is a fascinating enterprise communications company that is fast becoming a major rival to its larger competitor Twilio. The firm builds talk and text communication capabilities for applications such as Click-and-Call and SMS Marketing. Its customers already include businesses as influential as Google, Microsoft and Zoom.

 

Despite an excellent third quarter earnings report last November, the Communications Platform as a Service company has had a torrid previous twelve months of late. Its shares are down 67% from its earlier highs of February 2021, with little price action to indicate an imminent recovery is on the cards. 

A slowdown in growth – as well as cooling investor sentiment off the back of some downside guidance – has put paid to any big swings in capital appreciation for the time being. But that doesn’t mean BAND doesn’t still retain some long-term value.

 

In fact, Bandwidth is positively cheap right now, with its simply mind-blowing year-on-year EBITDA growth of 445% proving that this is an outfit that has no problems turning a profit.

 

Where would the world of online work be without DocuSign? It’s fair to say the electronic agreement and signature company has revolutionized the way we all do business in the Internet-age, and its rapid growth over the last few years has been witness to that.

 

However, the company’s recent precipitous share price fall in December 2021 has had investors wondering if there’s any upside left for this one-time darling of the Nasdaq exchange.

 

The firm lost 45% of its value in a matter of days at the end of last year, as expectations of weakening revenue caused investors to exit the stock in droves.

 

Although DOCU’s results actually beat earnings and top-line estimates during Q3, Chief Executive Dan Springer’s comments of lowered sales going forward sucked the wind out of any boost those numbers might have given the company.

But all is not lost. Given the general pull-back in almost every growth stock lately, it’s reassuring to see that insider trading has resumed for many of these companies, especially those in the SaaS sector.

 

Indeed, DOCU’s very own CEO Dan Springer has personally bought back DocuSign stock, just less than two months after that revenue warning. Perhaps the negative reaction was overwrought, and DocuSign is ready for a comeback?

 

The health crisis has seemingly led to many unintended and unforeseen consequences since its outbreak in 2020, but one of the strangest has been the phenomena known as the Great Resignation – that is, the raft of workers voluntarily leaving previous jobs en masse to either pursue recreational activities or find other employment more suited to their liking.

 

Whether the Big Quit is just a passing phase or a permanent feature remains to be seen, but, for the moment, the trend is very real. One big winner from this “new normal” is Fiverr, an Israel-based online freelance marketplace that brings together remote workers with those seeking their services.

 

Indeed, the company has identified in its own surveys the theme of worker flexibility, and the problem of new hires for employers, as major issues in the economy today, which Fiverr believes it can solve.

The good news for investors is that Fiverr operates in what is a potentially trillion-dollar market, and the firm is only scratching the surface of what it is capable of achieving.

 

The company recently received a dose of optimism from its latest Q3 earnings report, clocking in a Non-GAAP top-line beat of $0.19 per share, as well as better-than-expected revenues of $74 million.

 

Moreover, the firm is also expanding its user engagement, driving active buyers up by 33% year-on-year, and increasing the per spend value by 20% too.

 

As many people leave employment in established companies and firms, one of the difficulties they encounter is navigating the minefield of legal and regulatory demands that they suddenly have to face all alone.

 

To remedy this, new businesses such as LegalZoom have stepped into the vacuum, creating online solutions for people who need to manage their own legal documents without actually having to hire a specialist lawyer.

 

LegalZoom offers a suite of services for both business and personal needs, including brand protection, annual report writing and tax filing.

The company only went public in June 2021, and it’s not been much of a success thus far.

 

LegalZoom’s stock lost over half its value since its IPO, and is down over 4% already this year. However, the firm’s shares appear to have leveled out, and an up-tick in price action could be just around the corner.

 

The company missed its top-line target in the third quarter, but did beat its revenue expectations by $2.6 million, bringing in a total of $148 million in sales altogether. If the company stays profitable and keeps adding revenue, its fortunes could be about to change.

 

Continuing the theme of once-booming growth stocks having had a terrible year, we now come to Etsy, the popular e-commerce platform where artists and craftsmen sell their wares to an international and highly-engaged marketplace.

 

Etsy’s price rise since the early 2020s, has, to put it mildly, been astounding. The company’s stock rose nearly 10-times to over $300 in the space of little more than eighteen months, falling back to around the $160 point today after new buyer growth slowed down, with shoppers returning to brick-and-mortar outlets as the pandemic rescinded.

That drop in value is large but not unprecedented, especially for online businesses riding the tailwinds of the lock-down and work-from-home trends of the previous two years – but Etsy will need to get back on track soon, not least to stem the loss of investor confidence it suffered lately.

 

However, that does look more likely now, with KeyBanc Capital Markets recently upgrading its assessment of the company from Sector Weight to Overweight, having previously described Etsy as having “one of the strongest economic models” in the entire space.

 

On the face of it, Roblox is simply a fun, entertaining gaming platform aimed mainly at children, where users create their own games and play against each other online.

 

However, Roblox sits atop a massive growth opportunity in the form of the coming metaverse – and, if it takes off, everyone is set to benefit: Roblox, creators – and, most especially, investors.

 

As it stands, Roblox already has a fully-developed 3-D digital world in which users and developers can create their own online realities. But once the metaverse becomes a fully-realized fixture in people’s lives, Roblox will be perfectly positioned to sell itself as the platform of choice for early, and hopefully later, adopters of the new technology.

Critically for a business such as RBLX’s, the company has been growing that most important metric, its Daily Active Users. In fact, Roblox has been growing its global DAUs for 15 straight quarters now, but, because it also derives most of its users from the high-spending North America market, its revenue generation remains high too.

 

With a growing user base and a business model that derives 88% of its revenues from the sale of virtual items, it’s hard to see where Roblox can go wrong in the immediate future. 

 

One of the most pressing concerns for organizations whose workforce is stationed at home is figuring out how to manage those remote employees in an effective and efficient way. That’s where Atlassian comes in.

 

Attlasian is a software development and collaboration tool that helps companies handle their projects and teams in the best possible way.

Atlassian’s stock has seen a staggering loss of value from the close of 2021, when the company traded for prices in excess of $450. Today, however, the Australian firm is faring far worse, with shares changing hands for a little under $300. But don’t be put off though; TEAM’s been ripe for a correction for some time now, and this fairly rapid re-pricing event actually makes the stock more attractive, not less.

 

The company’s profitability metrics, particularly its gross margin of 84%, shows that it doesn’t have too many problems generating cash – its year-on-year operating cash flow growth is a healthy 45% too – but it does have issues converting that into raw earnings. But if TEAM can improve things here, who knows what it can achieve a few years down the line?