From CHWY to TEAM: Exploring 4 work-from-home stocks

When Apple Inc. (NASDAQ: AAPL) asked its employees to return and work from the office for at least three days a week, it did not go well for a section of the workers.

A group of disgruntled Apple staff launched a petition to attain more flexibility in terms of work arrangements. They argued that they performed better while working from home.

Twitter @AppleLaborers (AppleTogether)

Amid all these developments, we explore four work-from-home stocks chosen by Kalkine Media®:

1. Chewy, Inc. (NYSE: CHWY)

Chewy, Inc. is an online retailer of pet food in the US. Based out of Dania Beach, Florida, Chewy deals with all pet-related products. It was bought by PetSmart for US$3.35 billion in 2017, which was touted as the largest acquisition of an online business at that time.

CHWY stock plummeted more than 55 per cent year-over-year (YoY). But, over the past six months, Chewy’s shares rose 1.65 per cent.

Chewy is likely to report its Q2 2022 financial results on August 30, 2022, at market close.

For the first quarter of fiscal 2022, Chewy registered a net income of US$ 18.5 million, against US$ 38.8 million in the corresponding quarter a year earlier.

Its net sales in Q1 2022 were US$ 2.5 billion, relative to US$ 2.13 billion in Q2 2021.

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2. Dropbox, Inc. (NASDAQ: DBX)

Dropbox, Inc. offers file hosting services. It provides cloud storage, personal cloud, file synchronization, and client software.

The San Francisco, California-based company, Dropbox’s market valuation is US$ 8.36 billion. It has a price-to-earnings (P/E) ratio of 25.49. Its earnings-per-share (EPS) is US$ 0.89.

DBX stock increased 3.56 per cent over the past six months.

DropBox has collaborated with software giants like Microsoft, Google, Zoom, Salesforce, and Atlassian to grow their customer base and derive product exposure.

In the second quarter of 2022 financial results, Dropbox reported total revenue of US$ 572.7 million.

The GAAP net income for Q2 2022 was US$62.0 million, versus US$ 88 million in the year-ago quarter. Its non-GAAP net income was US$ 138.1 million, while it was US$ 160.5 million for the same period in 2021.

3. Steelcase Inc. (NYSE: SCS)

Steelcase is a US office furniture company that is more than 100 years old. As work from home has become the new normal with the onset of the pandemic, Steelcase is exploring new ideas to build product lines to offer greater privacy to workers, both on-site and offsite.

The US$ 1.34 billion market cap company, Steelcase has an annualized dividend of US$ 0.58.

The EPS of the company is US$ 0.17. SCS stock slid 0.16 per cent year-to-date (YTD). However, over the past month, it soared 6.07 per cent.

The company released its first quarter fiscal 2023 results on June 22, 2022.

For the quarter ended May 27, 2022, Steelcase reported a revenue of US$ 740.7 million, relative to the year-ago quarter at US$ 556.6 million. It also reported a net loss of US$ 11.4 million or US$ 0.10 per share in Q1 2023.

4. Atlassian Corporation (NASDAQ: TEAM)

Atlassian Corporation is an Australian software company domiciled in the UK. It develops products that cater to software developers, project managers, and other software management professionals. It also has global headquarters in many countries. It is based in San Francisco in the US.

Atlassian Corporation has a market cap of US$ 66.12 billion. On a year-to-date basis, TEAM stock plunged over 26 per cent. However, over the past month, it has gained over 31 per cent.

Atlassian released its fourth quarter fiscal 2022 results on August 4, 2022. It said that the quarterly revenue of US$ 760 million was up 36 per cent year-over-year. It was US$ 559.5 million in the corresponding quarter in 2021.

For the first quarter of fiscal 2023, the company is anticipating the total revenue to be in the range of US$ 795 million to US$ 810 million.

Bottom line

Despite what the fundamentals of the above stocks show, investing during a bearish phase calls for a lot of analysis of the sector’s growth prospects. When the economy is slow, there is inflation, and a likely recession coming ahead, so investors should choose their stocks based on a thorough analysis backed by long-term strategies.