The final days of February have been brutal for global stocks, with U.S. stocks seeing steep losses for six days in a row. Three key U.S. indexes like the S&P 500, the Dow Jones and the Nasdaq lost more than 4% on Feb 27 on news that California is monitoring at least 8,400 people for the coronavirus. About 33 people have tested positive in the state.
Global stocks are bracing for the worst week since 2008, thanks to the virus scare. In the past week (as of Feb 27, 2020), the key U.S. indexes lost more than 11% and entered into the correction territory. The S&P 500 witnessed the fastest correction in history. The Dow Jones fell 1,190.95 points on Feb 27 — its worst single-day slump in history.The FTSE 100 is now on course for its worst week since the Eurozone debt crisis in 2011.
Global markets lost $1.83 trillion on Feb 27, with the U.S. markets shedding $1.33 trillion, S&P Dow Jones’ Howard Silverblatt said in an email. Over the past six days, global markets wiped out $6 trillion, with U.S. markets losing $4 trillion.
Bank of America commented that the global economy is on its way for its weakest year since the 2008 financial crisis due to increased lockdowns, restrictions on global travel and lower manufacturing activity in China. Also, Goldman Sachs slashed its outlook for U.S. companies’ earnings growth to zero.
The three key big U.S. indexes and a small-cap index Russell 2000 tanked 9.3%, 10.7%, 7.9% and 9.1%, respectively (as of Feb 27, 2020). Against this backdrop, we highlight a few stocks that skyrocketed in the past month.
Co-Diagnostics Inc. (CODX - Free Report) — Up 207.9%
The molecular diagnostics company is clearly benefiting from the virus threat as it finalized its own unique coronavirus detection test. The new screening can test several patients at a time. This Zacks Rank #2 (Buy) companysurged 49.7% on Feb 27, the day Wall Street went into a correction mode.The stock hails from the favorable Zacks industry (top 46%) (read: The Wining Sector & Its Top Stocks in Virus-Infected January).
VAXART INC. (VXRT - Free Report) — Up 128.9%
Vaxart is a clinical-stage company developing a range of oral recombinant vaccines based on its proprietary delivery platform. Its development programs are oral tablet vaccines designed to provide protection against norovirus, seasonal influenza and respiratory syncytial virus. It also acts as a therapeutic vaccine for human papillomavirus.
No wonder, the company is in an advantageous position now as all expect a COVID-19 vaccine from it. It surged 49.7% on Feb 27. The stock has a Zacks Rank #2 andcomes from a favorable Zacks industry (top 39%).
Sprint Corporation (S - Free Report) — Up 109.4%
The wireless communications company’s stock has been gaining on the merger news. Sprint is poised to gain from potential growth opportunities of resilient 5G network rollout from its impending merger with T-Mobile. When the ruling in favor of Sprint-T Mobile deal (which was facing a regulatory hurdle) was announced on Feb.11, the stock surged. The Zacks Rank #3 (Hold) belongs to a favorable Zacks industry (top 41%).
Stamps.com Inc. (STMP - Free Report) — Up 86.4%
The Zacks Rank #1 (Strong Buy) company is a provider of Internet-based postage services. Stamps.com's service for postage online enables small businesses, enterprises and consumers print U.S. Postal Service-approved postage with just a PC, printer and Internet. The stock hails from a favorable Zacks industry (top 33%).
Uniti Group Inc. (UNIT - Free Report) — Up 59.5%
The Zacks Rank #3 real estate investment trust company is engaged in the acquisition and construction of mission critical infrastructure in the communications industry.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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