Do You Have These Epicenter Stocks On Your List Next Month?
When you are looking for the best stocks to buy in the stock market today, some of the best investments can be found in epicenter stocks. So, you might ask, what exactly are epicenter stocks? Originally popularized by Fundstrat’s Tom Lee, epicenter stocks are those which have been beaten down the most by the coronavirus pandemic. They are also the ones that could become the fastest to recover in light of an economic reopening.
Many of the travel names might spike from time to time over positive vaccine and treatment news. But we know that these companies are still struggling to gain a strong footing. That’s simply because they have been burning hundreds of millions of dollars every month just to stay afloat. Having said that, you might be skeptical about putting your money into a list of the top epicenter stocks today. I get that. However, as the world moves forward with more vaccines being approved, things are looking up. For a start, investors could prepare themselves with companies that are now struggling but stand a good chance of pulling through.
Pfizer (NYSE: PFE) and Moderna (NASDAQ: MRNA) were among the earliest to receive approvals for their vaccines. And on Thursday, Novavax (NASDAQ: NVAX) said that its coronavirus vaccine was more than 89% effective in protecting against COVID-19 in its phase 3 trial conducted in the U.K. Now, with Novavax’s vaccine looking to be on track to join Pfizer’s and Moderna’s, would you prepare a list of the best epicenter stocks to buy before 2021?
Top Epicenter Stocks To Watch On February 2021
- American Airlines (NASDAQ: AAL)
- Carnival Corporation (NYSE: CCL)
- Booking Holdings (NASDAQ: BKNG)
- AMC Entertainment Holdings (NYSE: AMC)
First up, shares of American Airlines soared more than 20% at the opening after the company reported earnings Thursday morning. If you haven’t taken a look at it closely, you would have thought AAL reported better than expected earnings. But the truth is, it’s because Reddit investors believe that AAL stock may be the next GameStop. And why might that be the case? All that started from one user saying that AAL stock is majorly shorted while others aren’t.
American Airlines reported a net loss of $2.18 billion for the fourth quarter, compared with a profit of $414 million a year earlier. The carrier reported an annual loss of $8.9 billion, its biggest on record. Fundamentally, this is not something to be cheering about.
However, anything that Reddit investors have their sight on is worth putting on your watchlist. No, I’m not saying this is the best investment in the stock market. But with this week’s vaccine news, the road to recovery for AAL stock may be a smoother one.
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Like American Airlines, the coronavirus pandemic has also brought the cruise-line business to a screeching halt. During the ongoing pandemic, the company has been burning hundreds of millions a month to stay operational. Even though the outlook for the industry seems bleak, many countries are immunizing their citizens. And that is a sign of hope.
Admittedly, it is still early to say if Carnival could allow all their ships to resume operation this year. But even if they don’t, the company has enough liquidity to weather through the COVID-19 storm.
That said, it is only a matter of time before the company could rebound. If things improve quickly in the coming few months, then there’s a good chance the company could rebound strongly. With another vaccine underway to immunize more citizens, things could really turn around for CCL stock sooner than we have expected.
Similar to other travel stocks listed above, Booking has been hit hard by the global pandemic. After shedding more than 40% of its stock price during the March sell-off, the stock has recouped back all its pandemic losses. The company’s stock price had another boost recently when an analyst from Wells Fargo lifted his price target to $2,250 on Booking. This implies a 10% potential upside from Thursday’s closing.
Booking Holding is slated to report its fourth-quarter earnings in February, and it’s like to be another painful quarter. That’s because most of its businesses come from Europe. Many of these countries are still struggling to tame the insidious virus. While businesses are unlikely to pick up in Europe anytime soon, it’s interesting to know how other countries, particularly those in East Asia and Australia are faring.
Now, no one can be sure when the company could fully rebound in terms of its bookings. But with increasing vaccine distribution, more government stimulus, and the gradual reopening of the economy, there are reasons to be cheerful. With that in mind, will you be watching BKNG stock?
It’s hard to put a list of top stocks to buy without including AMC Entertainment in the stock market today. The company has been in the limelight as of late for numerous reasons. Initially, investors were cheering on the company after it had gotten fresh funding to keep the company afloat. With bankruptcy no longer an imminent issue and with its balance sheet bolstered, the company believes that it has enough liquidity to keep its operation running until “deep into 2021”. That fresh funding has certainly assuaged fears that the company would go under.
The cinema operator has seen its stock price swinging wildly along with GameStop (NYSE: GME). After seeing its price drop below $2 per share earlier this month, AMC skyrocketed more than 1,000% to above $20 per share before shedding half of its value on Thursday’s trading. The good thing for AMC is that debtholders holding $600 million of AMC debt are converting the debt into AMC stock. That instantly improved the company’s financial position.
Despite yesterday’s plunge, AMC stock remains a darling to Reddit investors. While the plunge in stock price is due to the restriction imposed by Robinhood, there’s a great chance these Reddit investors will bid up AMC stock with another online brokerage firm today or sometime next week. Till then, you might want to add AMC stock to your watchlist to find out if it’s worth the risks.