Important Stocks to Watch this Week

Important Stocks to Watch this Week

These days, there has never been a boring week on Wall Street. Any firms are going to make headlines when we go into the final month of 2020 and they certainly bear to watch. Zoom Video (NASDAQ:ZM), Nikola (NASDAQ:NKLA) and DocuSign (NASDAQ:DOCU) have plenty to show this week.

Zoom

One of the hottest stocks this year will have the last chance to blow the market away this week. Zoom Video shares grew by 593 per cent in 2020 through the close of Friday, and bulls would contend that upticks were more than won. Zoom began the year as a rising yet mysterious video conferencing site. It erupted into a household name that redefined the way businesses meet, students study, and families gather. Analysts see sales more than quadrupling—up 316 per cent—for the third quarter of the fiscal year to be announced shortly after the market ends on Monday. Zoom's consolidated net income is forecast to be more than eightfold. As big as Wall Street's ambitions might sound, Zoom was a rock star. Over the past year, analyst forecasts have more than doubled in earnings per year. It is boosted its guidance. There may be questions about the role of Zoom in our lives until the pandemic is a thing of the past, but it will certainly never stop playing an important part in how we interact in the future.

Nikola

Investors are going to watch Nikola a little more than normal this week. Stock lock-up restrictions end early this week, releasing insiders who have been on bail on the stock since the electric truck designer's IPO six months ago. There are definitely some legitimate arguments for sale. Since entering the market through a special purpose acquisition company—or SPAC—route, we have seen the founder CEO resign on fraud charges and critics wonder how long Nikola would actually take to get his flagship Badger super truck on the track. Shareholders have been rallying along with other stocks of hybrid cars. Why will not insiders make a profit from this very risky stock? One factor to keep in mind here is that short interest keeps sticking to fresh heights, so a short squeeze is definitely possible. If insiders do not sell on Tuesday, it might lead to a rally—and more shorts closing their positions—later in the week. No matter how you cut it the risks here are high.

DocuSign

Zoom is not the only high-flying pandemic game to announce fresh financial reports this week. DocuSign will come up with its third-quarter fiscal results on Thursday afternoon. The price has more than tripled in 2020 when we step into the final month of trading. DocuSign's market is not rising at the same freakish rate as Zoom, but growth is accelerating for the second year in a row. The COVID-19 crisis has driven the shift from ink signatures to an e-signature industry dominated by DocuSign. Wall Street saw quarterly sales growing by 45 per cent on Thursday. DocuSign should be able to beat the analyst's bottom-line goals because like Zoom, it is been landing way ahead of where the pros are perched. Zoom, Nikola, and DocuSign are going on a lot these days. Market warming up to them as growth stocks, and investors will certainly pay attention to these three firms this week. Source: fool.com