REUTERS/ Albert Gea
- Analysts at Jefferies laid out handful of stocks they deemed winners and losers from a broad shift to remote work during coronavirus-related social distancing measures.
- Shares of software companies like Atlassian and Dropbox could benefit from more workers relying on digital means of communication and collaboration, they said.
- Others aren't so well-positioned. For instance, analysts said REIT - which rely on demand for physical office space - could take a hit.
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The coronavirus pandemic has upended many aspects of American work life, with the sudden social distancing measures it's commanded. And the situation has gotten so extreme that entire business models are being thrown into question.
That's impacting investment decisions. In a lengthy note sent to clients on Monday, analysts at Jefferies selected stocks they think could benefit, or suffer, during the broad shift to remote work during social distancing.
"Post COVID-19, the benefits of flexible working will likely lead to a doubling of WFH levels which will drive paradigm shifts in tech requirements, consumer behavior and will provide extra time," they wrote.
Their recommendations fall into three general themes emerging from the coronavirus crisis that's claimed more than 114,000 lives globally and devastated economies worldwide.
1. Tech requirements are shifting, leading to "expanded tech budgets drive secure efficient, mobile, cloud solutions and hardware."
2. Consumer behaviors are going to shift for the long-term, leading to changes like heavier emphasis on e-commerce, shrinking demand for physical office space, and a drop in makeup sales.
3. Consumers are going to spend their time differently, the analysts said. People are going to spend more time at home because remote work is expected to rise, and that's going to lead to more demand for products and services including at-home exercise and video games.
For instance, software companies intended to connect remote employees and facilitate collaboration and digital file storage are set to benefit, the analysts said, pointing to stocks including Atlassian and Dropbox. Others, like real estate investment trusts (REITs) - which rely on employers' demand for physical office space - could take a hit.
Listed below is a selection of five stocks that Jefferies deemed likely to benefit, and five they suggested could take a hit and should be avoided for now.