Would These Coronavirus Stocks Still Be Attractive After The Pandemic?
It’s been a wild start to 2020 for anyone keeping track of their portfolios. Many are looking for the best stocks to buy, but are not sure how to do so. It is also at this time where you would see some vulnerable investors making some of their biggest investment mistakes, while more experienced traders and some millennial investors are profiting from the fears of others.
Some people think it’s hard for people of average means to build significant wealth through the stock market. That’s not entirely true. Beginner investors can always start with small sums and learn their way up. This couldn’t be any more accurate from my point of view. After all, if an investor can’t trade well with a $1,000, how can he manage $100,000? Many have done well with quick flips of small cap stocks, while the rest make money surely but slowly with large-cap stocks and ETFs.
We are always encouraged to start investing now rather than later. But what if ‘now’ is during a coronavirus pandemic? What kind of strategy should we adopt in the stock market today when the pandemic is not going away yet? In my opinion, I would look for stocks that could benefit from Covid-19 (and hopefully still do after the pandemic). As such, are these coronavirus stocks on your watchlist?
Best Coronavirus Stocks To Buy: Beyond Meat
Beyond Meat (BYND Stock Report) is arguably the leading public company in the plant-based protein industry. The disruption facing the meat supply chain has sent the stock up since the market sell-off during March. The stock has held up quite well during the pandemic, with shares soaring 76% year to date and are currently trading at $136.44 per share.
The company reported its first quarter fiscal earnings on May 12, and the results were a highly positive one. Beyond Meat reported a strong increase in revenue of 141.4% from $40.21 million to $97.07 million, while gross profit margin expanded from 27% of sales to 39% of sales.
Many investors are concerned about the prospects of Beyond Meat when the pandemic is over. What investors may not be aware of is that it has some compelling growth drivers in the long term. The plant-based meat alternative company is quickly rising to national prominence through partnerships with fast food chains like Starbucks and KFC, just to name a few. More consumers are switching their eating habits towards a cleaner diet. Also, plant-based meat has gained increasing recognition in grocery stores. BYND stock remains a strong investment for the foreseeable future.
Best Coronavirus Stocks To Buy: Target Corporation
When it comes to selecting retail stocks, Target Corporation (TGT Stock Report) may not be the first to come to investors’ minds. Naturally, retail analysts have tended to focus more on Walmart (WMT Stock Report), Costco (COST Stock Report), and Amazon (AMZN Stock Report).
Digital Sales Growth; A Catalyst For TGT Stock?
When it comes to digital sales gain, Walmart is no match for Target Corporation. The company recorded an exponential growth of 282% from e-commerce sales and jumped 141% for the full quarter. Walmart’s comparable quarterly figure was only 74%. So why the big difference between two retailers?
Target’s same-day fulfillment services, which include in-store pickups and home deliveries, are leading the race. The chain’s ability to deliver these products safely helped lift its brand image during these trying times. High consumer satisfaction around these services should keep Target popular even after the Covid-19 threat has faded. Despite ongoing efforts of reopening in various sectors, certain consumers are still choosing to stay at home and place their orders online. TGT stock appears to have more room to run.
Best Coronavirus Stocks To Buy: Peloton Interactive Inc.
Shares of Peloton Interactive (PTON Stock Report) climbed to near all-time highs after speculation that gym-goers are unlikely to return to in-person fitness routines once economies begin to open. Peloton’s growth has picked up the pace, but this isn’t just a Covid-19 play. Momentum was obviously there well before the virus struck us. All that the pandemic has done is to accelerate the growth of the company.
Strong membership growth and record engagement levels make it clear that fitness seekers are making the most of their time at home. Besides spotting the trend, investors have simultaneously been putting their money into PTON stock amid strong financial results that are above Wall Street’s expectations. As an innovator paving the way to the future of fitness, has the market truly grasped the potential of PTON stock?