The United States is so far the hardest-hit country by the coronavirus pandemic. However, the government’s stimulus and safety measures can help in easing the coronavirus restrictions while the wait continues for a vaccine or cure. With major cities under lockdown, businesses shut down and stores closed, the economy has hit the wall and only reopening the country would help markets rebound. On Apr 26, U.S. Treasury Secretary Steven Mnuchin in an interview on Fox News said, “As we begin to reopen the economy in May and June, you’re going to see the economy really bounce back in July, August and September.” This ignites hope among investors whose sentiments have been dampened by a poor business outlook and a staggering jump in monthly jobless claims. News of several states easing lockdowns and businesses reopening, have helped investors heave a sigh of relief. States Reopening in Stages Recently, there was an upsurge in coronavirus testing in the United States and the report reflects that the share of positive tests has fallen to 11% for the week ending Apr 26 compared to 16% a week earlier. Among the states to reopen economy is Texas. The state has asked several nonessential retailers to provide curbside pickup. Additionally, Tennessee, Arkansas, Mississippi, Minnesota and Colorado have announced plans to lift business restrictions in phases. However, every state has separated policies on reopening. For instance, Tennessee has allowed restaurants and retailers to open at 50% capacity from Apr 27, while Minnesota is allowing nearly 80,000 to 100,000 workers in industrial and office jobs to return to work on the same day. In fact, America’s coronavirus hotspot New York also has plans to reopen economy. Governor Andrew Cuomo has begun discussing a phased-in reopening for the state, where construction and manufacturing would be the first workplaces permitted to reopen on May 15. However, with public health officials constantly warning of a resurge in cases due to asymptomatic carriers many of these states have continued social distancing norms and are keeping personal service businesses like salons, spa, tattoo parlors closed till further notice. Alongside, companies are also gearing up to reopen. Installation of thermal cameras to use of wristbands that will buzz if workers venture too close to colleagues are among the safety measures to be taken. Hotels are using ultraviolet light to sanitize rooms and employers have made face masks a compulsion for everyone. Why Buy Growth Stocks? Growth stocks generally quote those companies whose shares are anticipated to grow at a rate significantly higher than the average market rate. Investors can earn money through capital gains when they buy in the dip and eventually as the market gains traction, shares rally, bringing in profits for holders. Evidently, these companies do not pay out dividends, as they usually want to reinvest any earnings to accelerate growth in the short term. Additionally, these stocks have unique product lines and thanks to their innovation, often have a set of loyal customers or a significant amount of market share in their respective industry. 5 Stocks to Buy Given the current scenario, it would be prudent to invest in growth stocks as they tend to grow at a faster pace. We have shortlisted five stocks that flaunt a Zacks Rank #1 (Strong Buy) and possess a Growth Score of A.You can see the complete list of today’s Zacks #1 Rank stocks here. Avid Technology, Inc. ( AVID Quick Quote AVID - Free Report) develops, markets, sells and supports software, hardware and integrated solutions for video and audio content creation, management and distribution. The company’s expected earnings growth rate for the current year is 68.6% compared with the Zacks Computer - Software industry’s projected earnings growth of 1.6%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 6.2% upward over the past 60 days. Build-A-Bear Workshop, Inc. ( BBW Quick Quote BBW - Free Report) operates as a specialty retailer of plush animals and related products. The company’s expected earnings growth rate for the current year is more than 100% against the Zacks Retail - Miscellaneous industry’s projected decline of 18.3%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 22.2% upward over the past 60 days. JAKKS Pacific, Inc. ( JAKK Quick Quote JAKK - Free Report) develops, produces and markets consumer products. The company’s expected earnings growth rate for the current quarter is 34.7% against the Zacks Toys - Games - Hobbies industry’s projected decline of 20.1%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 12% upward over the past 60 days. Kaleyra, Inc. ( KLR Quick Quote KLR - Free Report) provides mobile communication services to financial institutions and enterprises. The company’s expected earnings growth rate for the current year is 8.3% against the Zacks Communication - Network Software industry’s projected decline of 13.8%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 18.2% upward over the past 60 days. MagnaChip Semiconductor Corporation ( MX Quick Quote MX - Free Report) designs, manufactures and sells analog and mixed-signal semiconductor platforms. The company’s expected earnings growth rate for the current year is 85.4% against the Zacks Semiconductor - Analog and Mixed industry’s projected decline of 27.9%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 4.7% upward over the past 60 days. Just Released: Zacks’ 7 Best Stocks for Today Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year. These 7 were selected because of their superior potential for immediate breakout.
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