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Coronavirus to Hit Apple Sales: Invest in Domestic Producers
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Apple Inc. (AAPL - Free Report) recently warned its investors of the impact of the deadly coronavirus outbreak on its business. Notably, the iPhone maker has been affected more than previously anticipated as the number of iPhones it can manufacture and sell in China will be limited. The iPhone maker announced that it is trimming sales expectations for this quarter. After all, demand for its products has declined in China, thanks to the outbreak.
Apple has closed all 42 of its stores in the country last month and many are yet to reopen. Management added that “we are experiencing a slower return to normal conditions than we had anticipated. As a result, we do not expect to meet the revenue guidance we provided for the March quarter.”
Needless to say, that the iPhone maker is heavily dependent on Chinese factories and consumers. Apple CEO, Tim Cook has been working with several Chinese telecom providers in introducing the iPhone in the country over the last 10 years. Following these committed initiatives, iPhone sales did take off, and now China is Apple’s second largest market after the United States.
By the way, Apple also assembles products in China. For instance, a Taiwanese company named Foxconn makes iPhones and other gadgets on behalf of Apple. However, concerns regarding the impact of coronavirus impact on the global economy and subsequently on corporate profits have been on the rise. The deadly virus has now infected over 72,000 people and claimed 1,800 lives, according to official reports. What’s more, nearly three-quarters of a billion people are already locked down in China, per a New York Times analysis.
Further, with the crisis deepening, not just Apple but a host of big companies have indicated that productions may be hurt, which in turn will have a bearing on their financial results. While Fiat Chrysler Automobiles has recently shut down several factory outlets in China, European aerospace giant Airbus, General Motors and Toyota have begun to limit production in China.
Starbucks and Ikea have shut down many stores, while deserted shopping malls in China are expected to adversely impact sales for retailers including Nike and others. Travel related stocks have been hit hard too. Notably, Lufthansa and British Airways have cancelled flights to China. To top it, after a recent breathtaking run, Tesla, Inc. (TSLA - Free Report) is looking vulnerable following the coronavirus outbreak. The electronic car maker did acknowledge risks that the coronavirus threat poses to output and overall business.
Coronavirus Threat Escalates! Grab These 4 Stocks Now
With the coronavirus threat increasing, it’s quite evident that companies having significant exposure to China and the global economy are vulnerable. However, domestic producers of goods should remain unaffected. Due to their limited international exposure, they offer higher protection than their large- and mid-cap counterparts against any economic upheaval. These stocks also have solid growth narratives as their promising outlook remains unfazed by the coronavirus outbreak.
We have, thus, selected four such stocks that should make meaningful additions to your portfolio. These stocks flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Eagle Bancorp Montana, Inc. (EBMT - Free Report) operates as the bank holding company for Opportunity Bank of Montana that provides various retail banking products and services in Montana. The company, currently, has a Zacks Rank #2. The Zacks Consensus Estimate for its current year earnings increased 1% over the past 90 days. The company’s expected earnings growth rate for the current quarter and year are 9.1% and 6.2%, respectively.
Onconova Therapeutics, Inc. , a clinical-stage biopharmaceutical company, focuses on discovering and developing small molecule product candidates to treat cancer. Onconova Therapeutics was founded in 1998 and is headquartered in Newtown, PA. The company, currently, has a Zacks Rank #2. The Zacks Consensus Estimate for its current year earnings increased 42% over the past 60 days. The company’s expected earnings growth rate for the current quarter and year are 94.1% and 57.7%, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
Proteostasis Therapeutics, Inc. engages in the discovery and development of various small molecule therapeutics to treat cystic fibrosis (CF) and other diseases caused by dysfunctional protein processing. Proteostasis Therapeutics was founded in 2006 and is headquartered in Boston, MA. The company, currently, has a Zacks Rank #1. The Zacks Consensus Estimate for its current year earnings increased 0.8% over the past 60 days. The company’s expected earnings growth rate for the current quarter and year are 19.4% and 25.5%, respectively.
Abeona Therapeutics Inc. develops cell and gene therapies for life-threatening rare genetic diseases. Abeona Therapeutics was incorporated in 1974 and is based in New York. The company, currently, has a Zacks Rank #2. The Zacks Consensus Estimate for its current year earnings increased 2.6% over the past 60 days. The company’s expected earnings growth rate for the current and next quarters are 19.4% and 30.8%, respectively.
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This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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Coronavirus to Hit Apple Sales: Invest in Domestic Producers
Apple Inc. (AAPL - Free Report) recently warned its investors of the impact of the deadly coronavirus outbreak on its business. Notably, the iPhone maker has been affected more than previously anticipated as the number of iPhones it can manufacture and sell in China will be limited. The iPhone maker announced that it is trimming sales expectations for this quarter. After all, demand for its products has declined in China, thanks to the outbreak.
Apple has closed all 42 of its stores in the country last month and many are yet to reopen. Management added that “we are experiencing a slower return to normal conditions than we had anticipated. As a result, we do not expect to meet the revenue guidance we provided for the March quarter.”
Needless to say, that the iPhone maker is heavily dependent on Chinese factories and consumers. Apple CEO, Tim Cook has been working with several Chinese telecom providers in introducing the iPhone in the country over the last 10 years. Following these committed initiatives, iPhone sales did take off, and now China is Apple’s second largest market after the United States.
By the way, Apple also assembles products in China. For instance, a Taiwanese company named Foxconn makes iPhones and other gadgets on behalf of Apple. However, concerns regarding the impact of coronavirus impact on the global economy and subsequently on corporate profits have been on the rise. The deadly virus has now infected over 72,000 people and claimed 1,800 lives, according to official reports. What’s more, nearly three-quarters of a billion people are already locked down in China, per a New York Times analysis.
Further, with the crisis deepening, not just Apple but a host of big companies have indicated that productions may be hurt, which in turn will have a bearing on their financial results. While Fiat Chrysler Automobiles has recently shut down several factory outlets in China, European aerospace giant Airbus, General Motors and Toyota have begun to limit production in China.
Starbucks and Ikea have shut down many stores, while deserted shopping malls in China are expected to adversely impact sales for retailers including Nike and others. Travel related stocks have been hit hard too. Notably, Lufthansa and British Airways have cancelled flights to China. To top it, after a recent breathtaking run, Tesla, Inc. (TSLA - Free Report) is looking vulnerable following the coronavirus outbreak. The electronic car maker did acknowledge risks that the coronavirus threat poses to output and overall business.
Coronavirus Threat Escalates! Grab These 4 Stocks Now
With the coronavirus threat increasing, it’s quite evident that companies having significant exposure to China and the global economy are vulnerable. However, domestic producers of goods should remain unaffected. Due to their limited international exposure, they offer higher protection than their large- and mid-cap counterparts against any economic upheaval. These stocks also have solid growth narratives as their promising outlook remains unfazed by the coronavirus outbreak.
We have, thus, selected four such stocks that should make meaningful additions to your portfolio. These stocks flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Eagle Bancorp Montana, Inc. (EBMT - Free Report) operates as the bank holding company for Opportunity Bank of Montana that provides various retail banking products and services in Montana. The company, currently, has a Zacks Rank #2. The Zacks Consensus Estimate for its current year earnings increased 1% over the past 90 days. The company’s expected earnings growth rate for the current quarter and year are 9.1% and 6.2%, respectively.
Onconova Therapeutics, Inc. , a clinical-stage biopharmaceutical company, focuses on discovering and developing small molecule product candidates to treat cancer. Onconova Therapeutics was founded in 1998 and is headquartered in Newtown, PA. The company, currently, has a Zacks Rank #2. The Zacks Consensus Estimate for its current year earnings increased 42% over the past 60 days. The company’s expected earnings growth rate for the current quarter and year are 94.1% and 57.7%, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
Proteostasis Therapeutics, Inc. engages in the discovery and development of various small molecule therapeutics to treat cystic fibrosis (CF) and other diseases caused by dysfunctional protein processing. Proteostasis Therapeutics was founded in 2006 and is headquartered in Boston, MA. The company, currently, has a Zacks Rank #1. The Zacks Consensus Estimate for its current year earnings increased 0.8% over the past 60 days. The company’s expected earnings growth rate for the current quarter and year are 19.4% and 25.5%, respectively.
Abeona Therapeutics Inc. develops cell and gene therapies for life-threatening rare genetic diseases. Abeona Therapeutics was incorporated in 1974 and is based in New York. The company, currently, has a Zacks Rank #2. The Zacks Consensus Estimate for its current year earnings increased 2.6% over the past 60 days. The company’s expected earnings growth rate for the current and next quarters are 19.4% and 30.8%, respectively.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>