Some might say we’re in the middle of a recession at present. The COVID-19 pandemic turned the business world upside down last year. Many companies and entire industries struggle to generate business growth or, in some cases, keep the lights on. At the same time, the stock market is booming. The S&P 500 Index has gained 16% in the past 52 weeks and the Nasdaq-100 Index increased by 42% over the same period. I wouldn’t be surprised to see a dramatic market correction in the near future, making the stock charts more comparable to the reality of this struggling economy.
Investors should take a closer look Fiverr International (NYSE: FVRR) and Zebra Technologies (NASDAQ: ZBRA), two tech stocks that look like good buys today. Since these companies are arguably benefiting from difficult market conditions, they would be even more tempting after the next general market crash.
A leading provider of data capture and management solutions, Zebra has seen customers across the company lining up for better data collection tools in 2020.
“They have prioritized spending with us to better position themselves to face new trends in automation and digitization like omnichannel for example,” CEO Anders Gustafsson said on last week’s show. call for fourth quarter results.
In other words, Zebra’s data management products are an important cog in many modern business machines, from retail giants and mass merchants to healthcare providers and manufacturers. Zebra barcodes and radio frequency identification (RFID) tags can help customers in all of these industries track their assets more effectively. The company also relies on cutting-edge solutions like distributed ledgers and blockchain technology to ensure the information you track is reliable, highly available, and easy to find.
Zebra share increased 50% in 2020. The company completely crushed Wall Street estimates during the second half of this difficult year. This action deserved its best valuation by offering fantastic results in good times as in bad times. You should consider buying Zebra today and then take a second look at it the next time the stock goes down due to a general market panic.
Independent market operator Fiverr climbed 730% more in 2020. When millions of people found themselves with a combination of overtime and stressful budget pressures during lockdowns from the coronavirus, the so-called concert economy entered the mainstream. Fiverr isn’t the only name in the game, but the opportunity for growth here is incredible.
Fiverr is looking down on an $ 815 billion domestic freelance economy today – and rising. With revenue of just $ 163 million, Fiverr captured around 0.02% of the addressable market. This is changing quickly, however. Fiverr sales were up 88% year-on-year in the third quarter and 89% in the fourth quarter, reported this morning.
Strong predictable growth and a large pool of untapped market opportunities make Fiverr a solid buy at almost any price. As lead investor Warren Buffett says, “It’s much better to buy a wonderful business at a fair price than a fair business at a wonderful price.” This is what you get in Fiverr – a explosive growth value who earns every penny of their premium valuation. Like Zebra, Fiverr should only grow faster when times are tough and you should be ready to add to your Fiverr holdings if the next stock market crash takes that action down.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.