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6 Stocks to Wade Through the Spike in Coronavirus Cases
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Major averages tumbled on Jul 7 as rise in new coronavirus cases weighed heavily on investors’ sentiments. The Dow, the S&P 500 and the Nasdaq closed 1.5%, 1.1% and 0.9% lower, respectively, for the day. Sharp declines were seen in airlines and hotel stocks, which eventually dragged down the broader market.
U.S. Sees 55k New Cases in a Day
Coronavirus cases are increasing in the United States by leaps and bounds. The country saw signs of easing as the number of new cases dropped to 49,818 on Jul 4 from 58,910 new cases a day before. However, since then, the cases have only been rising drastically. On Jul 7, 55,442 new cases were recorded in America, with 993 deaths on a single day.
The virus is wrecking havoc across Texas, California and Florida, which registered 9414, 8631 and 7347 new cases in single-day. Not far behind are Arizona and Georgia, which witnessed more than 3400 new cases on Jul 7. Florida's greater Miami area has become the new coronavirus hot spot and has opted to roll back its reopening plans. Other states going through the reopening process are putting travel restriction from the aforesaid states.
Additionally, the Organisation for Economic Co-operation and Development (OECD) factored in the risk of a second wave of COVID-19 and also suggested that countries need to move quickly to extend unemployment benefits.
Per OECD’s forecast, in the current scenario, the U.S. unemployment rate is likely to remain high at 10.4% in the fourth quarter of 2020. The organization forecasts U.S. real GDP decline to7.3% in 2020 with a 4.1% rebound in 2021, under a single wave. In case of a second wave, the OECD predicts U.S. real GDP decline to 8.5% in 2020 with a muted bounce-back of a mere 1.9% in 2021.
The looming possibilities of coronavirus resurgence led to widespread sell-off in stocks, which are supposed to benefit from the economic reopening. Shares of American Airlines and United Airlines plunged more than 6% on Jul 7.
6 Stocks to Snap Up
Given the current health scare, market volatility is here to stay for a while. Hence, we have shortlisted six stocks from consumer staples, healthcare and IT sectors.These stocks will continue to be in demand due to extended stay-and-work-at-home practices.
Consumer staples and healthcare sectors are considered defensive, as they deal in products and services that fulfill basic needs and thus enjoy steady demand during market gyrations. In fact, the pandemic has forced people to stay at home, keeping requirements for essential items like food and medicines intact.
Likewise, stocks in the IT sectors are facilitating several companies with the working-from-home trend. Hence, even with the surge in new cases, companies can continue to operate with employees availing remote working facilities.
Pilgrim's Pride Corporation (PPC - Free Report) produces, processes, markets, and distributes fresh and frozen chicken and pork products. The company’s expected earnings growth rate for the current year is 12.4% compared with the Zacks Food - Meat Products industry’s estimated earnings growth of 2.8%. The Zacks Consensus Estimate for its current-year earnings has climbed 56.9% over the past 60 days.
The Boston Beer Company, Inc. (SAM - Free Report) produces and sells alcohol beverages. The company’s expected earnings growth rate for the current year is 8.8% against the Zacks Beverages - Alcohol industry’s estimated earnings decline of 7%. The Zacks Consensus Estimate for its current-year earnings has climbed 18.1% over the past 60 days.
Emergent BioSolutions Inc. (EBS - Free Report) is a lifesciences company that addresses accidental, deliberate, and naturally occurring public health threats. The company’s expected earnings growth rate for the current year is 38.5% compared with the Zacks Medical - Biomedical and Genetics industry’s estimated earnings growth of 10%. The Zacks Consensus Estimate for its current-year earnings has climbed 26.7% over the past 60 days.
AbbVie Inc. (ABBV - Free Report) discovers, develops, manufactures, and sells pharmaceuticals. The company’s expected earnings growth rate for the current year is 17.9% compared with the Zacks Large Cap Pharmaceuticals industry’s estimated earnings growth of 6.1%. The Zacks Consensus Estimate for its current-year earnings has climbed 4.9% over the past 60 days.
Zoom Video Communications, Inc. (ZM - Free Report) provides a video-first communications platform that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems. The company’s expected earnings growth rate for the current year is more than 100% compared with the Zacks Internet - Software industry’s estimated earnings growth of 4%. The Zacks Consensus Estimate for its current-year earnings has climbed more than 100% over the past 60 days.
ChannelAdvisor Corporation offers a cloud platform that helps brands and retailers improve their online performance by expanding sales channels and facilitates in connecting with consumers around the world. The company’s expected earnings growth rate for the current year is 72.5% against the Zacks Internet - Software and Services industry’s estimated earnings decline of 12.8%. The Zacks Consensus Estimate for its current-year earnings has climbed 6.2% over the past 60 days.
5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.
Image: Shutterstock
6 Stocks to Wade Through the Spike in Coronavirus Cases
Major averages tumbled on Jul 7 as rise in new coronavirus cases weighed heavily on investors’ sentiments. The Dow, the S&P 500 and the Nasdaq closed 1.5%, 1.1% and 0.9% lower, respectively, for the day. Sharp declines were seen in airlines and hotel stocks, which eventually dragged down the broader market.
U.S. Sees 55k New Cases in a Day
Coronavirus cases are increasing in the United States by leaps and bounds. The country saw signs of easing as the number of new cases dropped to 49,818 on Jul 4 from 58,910 new cases a day before. However, since then, the cases have only been rising drastically. On Jul 7, 55,442 new cases were recorded in America, with 993 deaths on a single day.
The virus is wrecking havoc across Texas, California and Florida, which registered 9414, 8631 and 7347 new cases in single-day. Not far behind are Arizona and Georgia, which witnessed more than 3400 new cases on Jul 7. Florida's greater Miami area has become the new coronavirus hot spot and has opted to roll back its reopening plans. Other states going through the reopening process are putting travel restriction from the aforesaid states.
Additionally, the Organisation for Economic Co-operation and Development (OECD) factored in the risk of a second wave of COVID-19 and also suggested that countries need to move quickly to extend unemployment benefits.
Per OECD’s forecast, in the current scenario, the U.S. unemployment rate is likely to remain high at 10.4% in the fourth quarter of 2020. The organization forecasts U.S. real GDP decline to7.3% in 2020 with a 4.1% rebound in 2021, under a single wave. In case of a second wave, the OECD predicts U.S. real GDP decline to 8.5% in 2020 with a muted bounce-back of a mere 1.9% in 2021.
The looming possibilities of coronavirus resurgence led to widespread sell-off in stocks, which are supposed to benefit from the economic reopening. Shares of American Airlines and United Airlines plunged more than 6% on Jul 7.
6 Stocks to Snap Up
Given the current health scare, market volatility is here to stay for a while. Hence, we have shortlisted six stocks from consumer staples, healthcare and IT sectors.These stocks will continue to be in demand due to extended stay-and-work-at-home practices.
Consumer staples and healthcare sectors are considered defensive, as they deal in products and services that fulfill basic needs and thus enjoy steady demand during market gyrations. In fact, the pandemic has forced people to stay at home, keeping requirements for essential items like food and medicines intact.
Likewise, stocks in the IT sectors are facilitating several companies with the working-from-home trend. Hence, even with the surge in new cases, companies can continue to operate with employees availing remote working facilities.
What’s more? These stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Pilgrim's Pride Corporation (PPC - Free Report) produces, processes, markets, and distributes fresh and frozen chicken and pork products. The company’s expected earnings growth rate for the current year is 12.4% compared with the Zacks Food - Meat Products industry’s estimated earnings growth of 2.8%. The Zacks Consensus Estimate for its current-year earnings has climbed 56.9% over the past 60 days.
The Boston Beer Company, Inc. (SAM - Free Report) produces and sells alcohol beverages. The company’s expected earnings growth rate for the current year is 8.8% against the Zacks Beverages - Alcohol industry’s estimated earnings decline of 7%. The Zacks Consensus Estimate for its current-year earnings has climbed 18.1% over the past 60 days.
Emergent BioSolutions Inc. (EBS - Free Report) is a lifesciences company that addresses accidental, deliberate, and naturally occurring public health threats. The company’s expected earnings growth rate for the current year is 38.5% compared with the Zacks Medical - Biomedical and Genetics industry’s estimated earnings growth of 10%. The Zacks Consensus Estimate for its current-year earnings has climbed 26.7% over the past 60 days.
AbbVie Inc. (ABBV - Free Report) discovers, develops, manufactures, and sells pharmaceuticals. The company’s expected earnings growth rate for the current year is 17.9% compared with the Zacks Large Cap Pharmaceuticals industry’s estimated earnings growth of 6.1%. The Zacks Consensus Estimate for its current-year earnings has climbed 4.9% over the past 60 days.
Zoom Video Communications, Inc. (ZM - Free Report) provides a video-first communications platform that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems. The company’s expected earnings growth rate for the current year is more than 100% compared with the Zacks Internet - Software industry’s estimated earnings growth of 4%. The Zacks Consensus Estimate for its current-year earnings has climbed more than 100% over the past 60 days.
ChannelAdvisor Corporation offers a cloud platform that helps brands and retailers improve their online performance by expanding sales channels and facilitates in connecting with consumers around the world. The company’s expected earnings growth rate for the current year is 72.5% against the Zacks Internet - Software and Services industry’s estimated earnings decline of 12.8%. The Zacks Consensus Estimate for its current-year earnings has climbed 6.2% over the past 60 days.
5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.
See the 5 high-tech stocks now>>