Among the so-called novel coronavirus stocks to buy, Logitech (NASDAQ:LOGI) arguably stands out the most. No, LOGI stock doesn’t have the dramatic post-pandemic gains of Teladoc Health (NYSE:TDOC) or Zoom Video Communications (NASDAQ:ZM). Instead, Logitech has given stakeholders a steady rise to the top with minimal fuss. In these times, we can all appreciate this consistency.
Additionally, the stock is one of those names that should perform well irrespective of the pandemic’s outcome, barring of course irrational fears of a complete meltdown.
For example, if the biotech industry produces a vaccine, great! Video games already represented a rapidly growing market before the pandemic and that won’t change in the new normal.
If not, LOGI stock potentially moves higher aggressively. With little to do outside of home entertainment, people will naturally stay indoors. Indeed, government agencies and health officials are urging just that for non-essential activities.
It’s a win-win if you’re a Logitech stakeholder. And here are three more reasons why you should consider adding it to your portfolio.
Video Games Will Keep Powering LOGI Stock
When the coronavirus first triggered a nationwide shutdown, it took the air out of everything. However, video game companies were among the first to rebound sharply. As I said above, with little to do, many people distracted themselves with video games.
By the way, this isn’t an exclusively American phenomenon. Video game usage spiked across several countries. If you weren’t outside hunting for food and toilet paper, the best course of action was to stay indoors. This also explains why streaming giant Netflix (NASDAQ:NFLX) skyrocketed following its initial volatility in March.
Presently, the data suggests that the crisis will worsen. Hospitalizations are rising. Sadly, deaths are too. While many professional sports leagues have opened or resumed their seasons, the pivotal one — football — remains questionable. And there is a possibility that college football could be cancelled.
Let’s be clear — it’s a possibility, not a certainty. Further, you cannot take a decision like this lightly as it impacts a broader economic ecosystem.
But if the unthinkable were to happen, video games would plug the gap. In some ways, LOGI stock is a hedge against disaster.
Logitech Is the “Super Bowl”
Every year — well, perhaps for this upcoming season — football fans debate who will win the big game. Even sports fans who may not watch football all that much will tune into the Super Bowl. It’s an American tradition.
Consistently, though, the biggest winner isn’t necessarily who wins the ultimate matchup. Instead, it’s whoever sells the tickets. Logitech sells the tickets.
Part of the challenge of video game stocks is determining which trend will engage the most users. For instance, the first-person shooter (FPS) game Fortnite took the wind out of FPS giant Activision Blizzard (NASDAQ:ATVI). Also, different platforms — think mobile versus consoles — can create challenges for prospective investors.
Fortunately, these critical matters don’t matter to Logitech. Like I said, the underlying company is in the business of selling tickets, in this case, the controllers and accessories (such as gaming-centric headsets). Those don’t go out of style because they can be used across several platforms.
Taking out this guesswork also explains why LOGI stock has been so consistent this year.
Don’t Forget the Office!
Not everyone views the coronavirus in a completely negative light. When the virus first severely impacted our society, virtually all companies that could do so shifted their operations remotely. Inevitably, this was a huge relief for millions of employees. Now, they didn’t have to fight traffic or engage in the unpleasantries of working nine to five.
This bolsters the case for LOGI stock in that Logitech can ramp up its office equipment business. With remote workers staying in for the long haul, they’ll likely purchase equipment to make them feel comfortable and productive.
Moreover, Logitech isn’t just about boring stuff like keyboards and mice. They sell webcams and streaming-centric equipment too. If people want to become the next big YouTube star, Logitech has the platform.
Easily, Logitech is one of the most relevant companies in the new normal. Therefore, if you want some measure of confidence in this storm, consider buying LOGI stock.
Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. Click here to see what Matt has up his sleeve now. As of this writing, Matt did not hold a position in any of the aforementioned securities.