The great resignation began sometime in early 2021, coinciding with the pandemic. It was marked by a massive voluntary resignation by many workers across the U.S. Those workers cited unfavorable work conditions, burnout, and a lack of advancement opportunities as people reconsidered what was important to them in their work lives. It’s no secret that the workforce continues to change. With change comes opportunity. Those opportunities will certainly be reflected in the stock market as there will be shares to buy based on the shifting workforce.
I mentioned that the great resignation began sometime in early 2021. It is widely considered to have ended as the pandemic dissipated and the era of cheap money ended. There are signs that a great resignation 2.0 is in the offing. Whether a similar phenomenon emerges again is yet to be seen. However, these great resignation stocks to buy should fare well in either case.
Upwork (UPWK)
Upwork (NASDAQ:UPWK) is one of the biggest and best platforms for the growing gig economy. That makes it an obvious stock to consider as the workforce changes. More and more people are leaning into freelance work as a viable career choice.
Workers disillusioned with the corporate lifestyle continue to flock to Upwork and find opportunities there.
That’s the general narrative that supports investing in Upwork overall. Investors also have to consider the company’s results at the same time. There’s a fair bit of good news in that regard. First of all, Upwork is currently priced at $10. That’s below the low target price and suggests that 100% returns are a distinct possibility.
I’d argue that Upwork is currently undervalued due to the slowing of top-line growth. Overall, Upwork is stabilizing. The company reached net profitability in 2023 and is expected to continue to do so. However, sales growth has slowed to the mid-teens as a percentage.
The first quarter results largely followed those patterns. In my estimation, Upwork is headed in the right direction, and that sets it up for a comeback.
Pinterest (PINS)
Pinterest (NASDAQ:PINS) is a unique e-commerce platform that should grow as more individuals shun traditional work and start their own e-commerce businesses. I fully expect the stock to thrive moving forward. Pinterest is expected to reach overall profitability in 2024 and remain there. Significantly, Pinterest is also anticipated to grow by roughly 20% in the next several years.
As the workforce changes and more and more people shun the corporate lifestyle, e-commerce platforms will grow. Pinterest is expected to be among those platforms. It’s also a unique platform, and its business model warrants clarification.
Pinterest users, called pinners, create collections of images and videos, called pins, that adhere to specific themes. People view those pins and collections, known as scrapbooks, for inspiration. Those pins link to websites that drive sales. Pinterest receives a commission for each pin that leads to a sale.
It’s sort of like an affiliate platform. It’s also one with a lot of potential as more people venture into the e-commerce space independently.
Coursera (COUR)
Let’s start by noting that Coursera (NYSE:COUR) stock is subject to many of the same factors as the companies discussed above. It, too, is expected to reach overall profitability in 2024 and should recognize a slower sales growth trajectory moving forward.
I’m a fan of investing in companies that are just reaching net profitability and am willing to sacrifice slower growth. Thus, Coursera is an excellent choice, especially amid ongoing workforce changes.
Coursera acts as a sort of middleman. The platform connects businesses, universities, and others, offering courses and even entire degree programs. That’s particularly useful for a shifting Workforce for several reasons. Some employees are seeking to switch industries. In that case, Coursera offers courses and degree options that may help those individuals.
Many people are choosing to avoid traditional education these days. There, too, Coursera shines.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
