The coronavirus pandemic which struck the world early in 2020 is, as many are well aware, still quite strong. Depending on who you ask, this might be the second or even third wave. While some claim that the first one never actually ended and that this situation might go on for years. Or at least until a proper vaccine has been developed.
People were afraid of an economic disaster, and they rushed to withdraw their investments. In doing so, they caused the very thing they were so afraid of. But, while a lot of stocks did see their prices go down tremendously, not all of them did. Some of them saw only small drops. As they belonged to essential businesses which were not under threat of going out of work.
There are still quite a few options for those who wish to invest during the pandemic, and today, we are going to check a few of them out. It will give you some ideas. So what are good stocks to invest in during the pandemic?
Which stocks to invest in during the pandemic?
One good thing to note is that you are not only limited to investing in a few different companies. For example, you can choose between things like:
- Consumer goods
- Firms that provide work-from-home tools
- Companies offering things to pass the time in quarantine
- and more.
So, with this being the year of the pandemic, let's talk about healthcare first.
Naturally, with COVID-19 still spreading, healthcare space is of dire importance. It's not only for handling the coronavirus patients, but mostly for all other diseases, injuries, and similar medical issues.
People will always need doctors and medicine, and so healthcare-based companies cannot and will not go out of business anytime soon.
Now, one of the best investments in this space is Gilead Sciences (GILD), which actually took the lead when it comes to fighting COVID-19. The company developed a drug that was originally meant for fighting Ebola. However, after some testing, it has shown promising results when it comes to fighting coronavirus.
This is why the company's stock price has seen a strong, healthy increase, even though many other companies have been seeing a decline for months in 2020.
Another excellent investment would be Teladoc (TDOC), which is a virtual healthcare company. Basically, it allows patients to respect social distancing and keep themselves safe through digital doctors, who can easily visit remote patients and assess the nature of their health.
You might also be interested in checking out a company called Clorox (CLX), which is making disinfectant wipes. Obviously, apart from protecting your mouth and nose with a mask, you must also keep washing your hands before eating, touching your face, or doing anything else that could potentially get you infected.
This is hard to do if you have to go outside for whatever reason. However, with disinfectant wipes which you can carry with you, you can keep yourself — and those around you — safe. For these reasons, the company has received a lot of attention during 2020, and will likely continue to prosper. While the conditions that led to its prosperity are not at all positive, the company is still a very good investment.
2) Consumer goods
With people being stuck at home during self-quarantine, the first thing that most people did was to go to the supermarkets and stock up or order major amounts of various consumer goods online. This is why some companies saw much greater demand for their goods than usual, which helped their stock price surge quite high up.
One example is Johnson & Johnson (JNJ), which is offering consumer and pharmaceutical goods. Obviously, the outbreak caused quite a high demand for such items. Another example worth considering is Procter & Gamble (PG), which is also managing to benefit in the same sector.
Then, there are firms like Campbell Soup (CPB) or Hormel (HRL), which are providing canned and shelf-stable food. These are goods that can be bought in large amounts and they remain fresh and edible for a long time, which is, clearly, a good thing to stock up on during quarantine. As a result, these firms also received a lot of attention and plenty of investments in their shares.
And, of course, there are always shipping giants like Amazon (AMZN) and Alibaba (BABA), which allow you to order pretty much anything. With people being stuck inside, most of their shopping ended up being done online, and these giants are the first places anyone would look for whatever kind of item they might want. So, if you are interested in investing in e-commerce businesses, these are pretty safe investments.
3) Work-from-home tool providers
Thanks to the internet, a lot of people in and out of the IT sector managed to keep their jobs, although that meant that they would have to work remotely, from home. That means using various tools that would either help them increase security, access companies' resources remotely, or even those meant for nothing but communication and secure file sharing.
One example of this is Zoom Video Communications (ZM), which emerged as the top choice for video communication. The company's app, Zoom, is being used for remote classes, online business conferences, and even for casual conversations with friends and family. Back in mid-March, when the pandemic truly struck globally, Zoom stock price surged by 12% in less than four weeks.
Another good choice is Citrix Systems (CTXS), which is a cloud computing and software firm. The company saw a lot of demand for cloud computing after the COVID-19 outbreak had started, and since the outbreak is expected to last for quite a while, it is likely going to continue seeing significant demand and usage, which can only benefit its stock price.
You can also consider firms such as Slack Technologies (WORK), which also benefitted significantly from people who had to start working remotely, from home. It has been among the top investment picks on a lot of lists, such as the ones offered by Bespoke and Morningstar.
4) Firms offering things to pass the time in quarantine
Let's face it, having to sit at home for weeks or months without being able to go outside and enjoy their spare time is driving people crazy. We are social beings, and most of us like to enjoy the company of others.
With that being pretty much out of the question, except for those who are taking unnecessary risks to satisfy this urge — those who were willing to isolate themselves needed something to pass the time.
Of course, there are plenty of firms that offer goods and services that could provide more than a decent distraction, and such companies were also able to benefit, even as the situation started moving from bad to worse.
Still, if you are looking for good investment opportunities, companies such as Netflix are definitely not something you should skip.
Netflix's (NFLX) stocks have been performing excellently for years now. The company offers its streaming services to people around the globe, and if we liked watching its movies, shows, documentaries, anime, and other types of content — just imagine how much watch time the company started receiving since the quarantine had kicked in.
Netflix offers cheap service with top quality, and that is why most people in the world turned to watch its content while stuck at home. Obviously, the company has managed to benefit a lot, and it even attracted a lot of new users, some of which finally got the time they needed to binge-watch their favorite shows.
Then, there are people who like to exercise and lead healthy lives, such as gym-goers, cyclists, and others who prefer the outdoors. While you can still ride your bicycle and distance yourself from others, many people who prefer this are strongly concerned about health, so they chose not to take unnecessary risks.
Fortunately, companies like Peloton (PTON) — which creates indoor exercise bikes — were there to lend them a hand — or rather, their products. This particular firm became a top pick for those ordering exercise equipment for home conditions, and so the company's stock started performing quite well.
Firms like Electronic Arts (EA), Take Two Interactive (TTWO), CD Projekt Red (CDR), Nintendo Co. LTD (NTDOY), SciPlay Corp. (SCPL), and many others, all represent great investment opportunities.
These firms managed to keep developing their games thanks to the ability to work remotely. While the demand for their games did more than help them stay afloat, it actually brought more demand than ever for their products.
Lastly — something that everyone saw coming — major US telecoms firms also managed to see quite a bit of growth. Firms like Verizon (VZ) or AT&T (T) ended up being praised by investors as safe havens during the initial stages of the pandemic, and later on.
As you can see, even though the stock market did crash in early March, there were still quite a few different firms from all kinds of industries. And that can end up being great investments for those seeking to earn money that way.
You can undoubtedly find many more companies from many more industries which are great investment opportunities right now. All you need to do is think about what do people need. Or use during the pandemic, who is providing it, and then check out who is the most popular among those providers.
There is some research to be done here, which is usually the case when it comes to investments. But there are definitely more than a few good opportunities out there, just waiting to be seized.