Here’s My Favorite Stock for the Second Half of 2020

It carries relatively low risk for a high return potential.

Coolcaesar / CC BY-SA

All signs are pointing to the fact that we’re still in the middle of the greatest stock market rally the world has ever seen.

Since March 2009, the S&P 500 Index is up 357%. And since the 35% “Covid Crash” from February to March of this year, we’re already back near all-time highs…

Think about it… Inflation is low, interest rates are near zero, and the Fed recently launched $3.5 trillion worth of economic stimulus – the largest in history – with even more likely to come…

There have already been some huge winners so far in the first half of 2020. SHOP is up 144%, NKLA is up 575%, NVAX has rocketed 1,633% higher… Just to name a few.

With the S&P 500 down a modest 4% YTD, it’s important to pick individual stocks.

Here’s my favorite stock for the second half of the year…

This Company Is Changing the Way We Do Business Forever

You’ve probably heard of it before…

Heck, if you’ve been working remotely during this pandemic, odds are you’ve already used it a number of times…

Zoom Video Communications (NASDAQ: ZM) is my favorite stock for the second half of 2020 because it carries relatively low risk for a high return potential.

finviz dynamic chart for  ZM

In case you don’t know, Zoom provides a communications platform that connects people through video, voice, chat, and content sharing.

The company’s cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting.

Customers can use the platform for teleconferencing, telecommuting, distance education, and social relations.

Zoom’s business strategy focuses on providing an easier to use product than its competitors, as well as cost savings. The company minimizes computational costs at the infrastructure level and has a high degree of employee efficiency.

Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.

You probably already know that ZM stock has been one of the best performing stocks already in 2020 – up 280% so far. And the best part is, you can still invest today for substantial returns by the end of the year…

Thanks to government shutdowns of “non-essential” businesses, Zoom’s daily active users have increased a whopping 1,900% – from 10 million to 200 million between January and March.

But these companies still need to get the same work done, whether they’re allowed to be in the office or not.

And because of its superior technology and cost savings benefits, most are choosing Zoom over all of its competitors (Slack, Microsoft, Cisco, Google).

The massive increase in daily active users has mostly contributed to Zoom’s meteoric rise.

And I think Zoom’s user growth will continue from here because 19 states are already pausing plans to reopen their economies in some way, shape, or form.

Even if we discovered a COVID-19 vaccine that could be widely distributed throughout the world tomorrow, many businesses will NOT have their employees return to the office for business as usual.

Instead, they’re going to cut operations costs by reducing office size or eliminating the physical office altogether. And they’re going to continue using Zoom to save money and conduct business remotely.

That’s the “low-risk” element to investing in Zoom today, which I was alluding to earlier.

My prediction is that Zoom will conservatively add another 200 million users by the end of 2020, which could mean big moves in the stock price.

Legendary Stock-Picker Names Favorite Stock of ‘20

He's pinpointed dozens of stocks that went on to jump 100% or more.

Plus 18 recommendations that skyrocketed over 1,000%.

Today, he's doing it all over again.