It’s easy to play alphabet soup to come up with creative abbreviations for hot stocks. I whipped up MANA as a way to improve on the now iconic FAANG stocks in the fall of 2018 — and two years later, MANA was smoking the original.
Fellow Fool Sean Williams cooked up TIPS as a new acronym last week, and I like the four stocks he went with. However, these are extraordinary times we live in, and it’s time to realize that the big winners of 2020 aren’t one-year flukes. I would like to propose a new acronym — Zoom (NASDAQ:ZM), Amazon.com (NASDAQ:AMZN), Roku (NASDAQ:ROKU), and Peloton (NASDAQ:PTON) — or ZARP. These are leaders of the current environment, and they should continue to be market bellwethers. Let’s check out the investing world according to ZARP.
It’s been a pretty explosive year for Zoom. A year ago, Zoom was a videoconferencing platform used largely by companies with remote workers or numerous offices. Now it’s the hub of choice for schools, family reunions, and companies with work-from-home policies in place.
Zoom was doing just fine before. Revenue nearly doubled in its fiscal 2020, which ended in January. The top line is expected to nearly quadruple this fiscal year, and the way it’s been jacking up its guidance every three months, don’t