TOP 3 stocks for November

Zoom - welcome to the kingdom of volatility

Zoom Communications can be described as the kingdom of volatility, with its value down almost 60% since the beginning of the year. Such a fall was probably inevitable, after the Zoom shares shot up during the coronavirus. The current share price is comparable to that at the start of 2020. Adapting to a world without a coronavirus is extremely difficult for Zoom, and the company is thus facing a harsh reality. Can Zoom be described as a "one trick pony" - a company that no longer has anything to offer long-term investors? Or can the current price be attractive for long-term portfolios?
 

_{Zoom shares in the MT4 platform on the D1 timeframe along with the 50 and 100 day moving averages}

The company's third-quarter results would suggest the former. The numbers themselves were not too bad - earnings per share of $1.07 were well ahead of market expectations, and sales of $1.1 billion matched market expectations. If there is one thing investors do not like, however, it is a downgrade to the outlook for the next quarter or full year. Zoom is expected to end 2022 with $4.37 billion in revenue, which is less than the company itself and analysts had estimated. It is very hard for Zoom to find new clients, and the number of subscriptions through the web is even declining.

Moreover, Zoom has a very strong competitor in the form of one of the biggest companies in the world - Microsoft. Its Teams are stealing a large part of Zoom's clients. We must also not forget the competition in the form of Cisco and Google. With energy prices rising, it is possible that people will prefer working from the office to their own home. Zoom, like most of us, could be in for a tough winter. So Zoom definitely cannot be described as a "buy" and it would probably need a miracle to make a difference.

Lufthansa - a steep take off?

If anyone is benefiting from the post-covid era, it is the airlines. Strong demand for travel is driving their shares higher and Lufthansa, for example, has gained more than 12% since the start of the year, outperforming both the DAX and the S&P 500. However, the chart below shows that this year has not been without turbulence, and Lufthansa has also experienced high volatility. However, like the DAX index as a whole, it has been having a great time since the end of November. In that time, the shares have appreciated by almost 30%. Looking at the financial results, it is no wonder - sales practically doubled year-on-year to EUR 10.1 billion and EBIT quadrupled to EUR 1.1 billion. In addition, Lufthansa raised its outlook for the full year.
 

_{Lufthansa shares in the MT4 platform on the D1 timeframe together with the 50 and 100 day moving averages}

However, even Lufthansa is not a company without risks, as the pandemic has already shown us. Similar increases in the number of infections as China is currently experiencing could once again affect the aviation sector. Moreover, China is one of the destinations to which Lufthansa aircraft fly. Moreover, in September, the pilots' union went on strike in a fight for higher wages. This strike cost the company more than EUR 70 million and 800 cancelled flights. However, no more strikes are expected until June 2023. However, Lufthansa shares could pay the price for the overly optimistic rise in German shares in recent weeks. Winter can be very tough in Germany and the threat of a recession has certainly not yet been averted. A possible recession could have a significant impact on travel across Europe.