Analysts say stocks like Amazon and Wingstop will continue to benefit from a socially distant world

Published Sat, May 9 20208:10 AM EDT

(This story is for CNBC PRO subscribers only.) Consumers may be social distancing for the foreseeable future due to the coronavirus pandemic, but Wall Street analysts say there's a slew of ways for investors to trade the stay-at home play. CNBC PRO examined Wall Street research this week to find stocks that will benefit from more a socially distant society. They include: Wingstop , ServiceNow, QTS Realty Trust , CyrusOne , Amazon, and Wolverine World Wide . Wolverine World Wide The footwear manufacturer is home to outdoor brands like Wolverine Boots and Stride Rite, which could be unexpected beneficiaries as consumers and families begin to get outside, especially in warmer weather, noted KeyBanc analysts Matthew DeGulis and Edward Yruma. "If the consumer economy remains in a recessionary environment through the balance of the year, which we view as likely, we believe needed products will outpace wanted products. WWW's largest brands are driven by need-based purchases," they said. The firm also added that the company has exposure to many countries re-opening faster than the United States. Shares are up 10% over the last month. Wingstop Earlier this year, CNBC's Jim Cramer highlighted the chicken wing restaurant chain as one of 20 stock picks in his 'stay-at-home economy index.' With the stock up over 47% this year, the company's digital strategy may be paying off, according to investment firm Cowen. "Wingstop's playbook focused on off-premise, digital, simple operations, robust data mining/analytics and prudent integration of third party delivery are paying off with sales accelerating from 8.6% in March to 33.4% in April," analyst Andrew Charles said. The company also beat estimates on its first quarter earnings report earlier this week. "WING remains the best long-term story in small mid cap restaurants, in both a social distancing backdrop as well as 'on the other side.'" ServiceNow Shares of ServiceNow hit an all-time intraday high earlier this week before pulling back to $377 at the close of Friday's trading. The cloud computing platform, which helps companies manage digital workflows, is also up over 33% year-to-date. Bank of America recently attended ServiceNow's virtual conference and came away "incrementally bullish" that the company has what it takes to succeed during the pandemic and beyond. "In our view, NOW has proven to be a key business continuity tool during the COVID-19 crisis and is now solidifying itself as a key tool to enable remote employees to eventually return to work," analyst Kash Rangan said. The firm reiterated its buy rating and said the company was a top pick well on its way to $10 billion dollars in long-term revenue. "NOW has taken yet another step to showcase the flexibility of its platform and solidify its relevance in the future of work," he said. QTS Realty Trust & CyrusOne - Jefferies, Buy ratings "QTS' strong backlog of leasing should drive sector-leading earnings growth for the next few years. Additionally, the company's large bank of shell capacity allows the company to quickly deliver new space in a time when getting construction permits is difficult. For CONE, we expect accelerating growth from recent levels as hyperscale leasing picks up. ... .WFH Digital Transformation Has Staying Power. At some point we will all go back to the office, stop wearing masks, go to a restaurant, and take a flight. However, we believe there will be no going back from the current rapid digital transformation of the workplace. The enterprise applications that have been put in the cloud to enable more efficient work-from-home are likely never coming out. Amazon - Argus, Buy rating "Although the pandemic is perceived as having 'turned a corner,' we believe many of the changes wrought by shelter-at-home and social distancing will persist. These include increased use of remote work-spaces, heavier use of delivery and do-it-for-me services, continued growth in media and gaming content streaming, and other significant behavioral changes. Amazon is positioned for growth in all economies, but particularly amid significant shifts in the social fabric such as at present." Wolverine World Wide - KeyBanc, Overweight rating "Wolverine and the social-distance economy – outdoors, international, and kids. If the consumer economy remains in a recessionary environment through the balance of the year, which we view as likely, we believe needed products will outpace wanted products. WWW's largest brands are driven by need-based purchases. Pairs of hiking, work, or running shoes are usually considered and based on need. ... .For the first two weeks of 2Q, WWW's owned e-commerce business was trending > 100%. Further, WWW has a large international business with exposure to many economies reopening faster than the U.S. Finally, WWW has a large kids business; spending on kids has acted recessionresistant in the past. Wingstop - Cowen, Outperform rating "WING remains the best long-term story in smid cap restaurants, in both a social distancing backdrop as well as 'on the other side.' We expect durable upside to comps will be driven by middle innings of digital penetration, growing brand awareness and the potential return of successful check & margin accretive value offers. ... .Wingstop's playbook focused on off-premise, digital, simple operations, robust data mining/analytics and prudent integration of thirdparty delivery are paying off with sales accelerating from 8.6% in March to 33.4% in April." ServiceNow - Bank of America, Buy rating "We attended the ServiceNow Knowledge virtual conference and came away incrementally bullish. In our view, NOW has proven to be a key business continuity tool during the COVID-19 crisis and is now solidifying itself as a key tool to enable remote employees to eventually return to work. ... .We re-iterate NOW as a top pick given its rising relevance in customers' IT spending priority, enabling higher productivity and business continuity, and solidifying its path towards $10bn+ in revs LT."

Charlie Morrison, former CEO of Wingstop.

Scott Mlyn | CNBC

(This story is for CNBC PRO subscribers only.)

Consumers may be social distancing for the foreseeable future due to the coronavirus pandemic, but Wall Street analysts say there's a slew of ways for investors to trade the stay-at home play.

CNBC PRO examined Wall Street research this week to find stocks that will benefit from more a socially distant society.