5 Pandemic Stock Favorites Are Rising Despite Omicron Variant Fears
Amid the latest market crash, some COVID-19 pandemic stock favorites are seeing renewed trading interest. Will fears about the Omicron variant impact the stocks?
Nov. 29 2021, Published 10:21 a.m. ET
Stay-at-home stocks are still in the running. As the omicron variant of the COVID-19 virus takes center stage, the stock market is wavering much like it did when the COVID-19 pandemic first hit the U.S. in February 2020. Since the Dow Jones Industrial Average dropped by 1,030 points in a day, certain COVID-19 pandemic favorites are climbing their way up once more.
Here are five stocks that are seeing a resurgence as the new COVID-19 variant causes economic concern. Also, some bonus stocks are still integral to the conversation.
1. Docusign (DOCU) is up as the omicron variant emerges.
Docusign Inc. (NASDAQ:DOCU) rose by 5.65 percent overnight on Nov. 26 before leveling off to achieve a marginal gain. In addition to being a stay-at-home stock that caters to electronic contracts and identification, DOCU is poised to report earnings this week.
Wall Street analysts predict an EPS of $0.46, which is up from $0.22 this time last year. The revenue is expected to increase YoY from $383.92 million to $530.63 million.
2. Zoom (ZM) is logging back on as the omicron variant looms.
Zoom Video Communications Inc. (NASDAQ:ZM) stock jumped 13.15 percent overnight on Nov. 26 before leveling off for a marginal gain by the morning of Nov. 29.
Zoom was one of the biggest stay-at-home stocks during the COVID-19 pandemic's early days. Zoom's run appears to be continuing on a smaller scale. YTD, ZM stock is down 41 percent and it's struggling to sustain growth. A resurgence in stay-at-home stocks could mean that the current price of $210.76 (on the morning of Nov. 29) is a steal.
3. Moderna (MRNA) shows that the public has faith in vaccine makers.
Moderna (NASDAQ:MRNA) stock is soaring and is up 30.55 percent from its pre-Thanksgiving price. The omicron variant is different from other COVID-19 variants because it's heavily mutated, which could mean that more vaccine research is needed.
Vaccine makers will need at least a few weeks to determine if the current vaccines will protect against the new variant.
4. BioNTech (BNTX) rises amid talk of a vaccine for the omicron variant.
Pfizer's partner in crime, BioNTech (NASDAQ:BNTX) is up 16.08 percent from its pre-Thanksgiving price. BioNTech is in a similar place to Moderna, although the momentum for Moderna is stronger.
BioNTech reports that it's already developing a vaccine for the omicron variant, which proves that it's ahead of the curve.
5. Twitter (TWTR) is chirping again.
Twitter Inc. (NYSE:TWTR) dropped a few percentage points over the Thanksgiving holiday but subsequently rose as much as 10.34 percent over the weekend following news of CEO Jack Dorsey's expected departure.
While not entirely due to the omicron variant, Twitter is a stay-at-home stock that has been known to generate revenue and growth during recent economic tumult. Final reports about Dorsey's egress and a potential replacement are expected in the coming days.
Other stay-at-home stocks getting a boost.
Peloton Interactive Inc. (NASDAQ:PTON) rose nearly 8.63 percent overnight on Nov. 26 before tapering off, but the stock is still seeing gains while many major public companies are losing. Recent bullishness aside, PTON has had trouble keeping up with rapid growth.
Not all COVID-19 pandemic favorites are making the cut this week. Stocks like DoorDash (NYSE:DASH) and Crocs (NASDAQ:CROX) are both seeing bearish behavior in line with the greater market, which suggests there's still time to see what the omicron variant will do.