Because several states have detected the COVID-19 omicron variant and the number of cases is expected to rise rapidly, several organizations are expected to resume a remote working model. Thus, we think it could be wise to bet on fundamentally sound work from home stocks Broadcom (NASDAQ:AVGO), Workday (NASDAQ:WDAY), and VMware (NYSE:VMW). Read on.The COVID-19 pandemic has given a significant boost to the performance of the work-from-home industry, which was booming well before 2020. While many employees resumed working from their offices this year after solid progress on the COVID-19 vaccination front, with the advent of a new, highly-contagious variant, omicron, many household name companies, such as Alphabet Inc. (NASDAQ:GOOGL), have postponed their return-to-office plans. Also, Okta (NASDAQ:OKTA) CEO Todd McKinnon recently asserted that “hybrid work will become more of the norm.” This is expected to drive the work-from-home industry’s growth.
According to a Small Business TRENDS report, 36.2 million Americans are expected to work remotely by 2025. Furthermore, 85% of Americans are estimated to enquire about remote/hybrid options before applying for jobs.
Given this backdrop, we think work-from-home stocks Broadcom Inc. (AVGO), Workday, Inc. (WDAY), and VMware, Inc. (VMW) could be solid picks now. The Direxion Work From Home ETF (WFH), which has returned 110.8% year-to-date, holds these three stocks.