Covid-19 is proving to be this year’s black swan, spreading fear and gloom and crippling thousands of businesses as evidenced by the epic stock market crash. Financial analysts are predicting a “ripple effect” from a global supply chain disruptions, which could slow down the production of familiar consumer goods, from iPhones and diet coke to baby yoda toys.
Yet, the novel coronavirus has sparked a huge consumerist boom as people rush to stock up on things like face masks, hand, and household disinfectants.
No one is laughing at survivalists anymore as preppers--those guys who have always warned us about impending Armageddon--continue doing booming business.
As the global community continues life in lockdown due to the coronavirus, a handful of brands appear to be in the pink of health, uniquely profiting from quarantine preparations such as medical supplies, antiseptic labels, canned food and at-home entertainment.
Meanwhile, any place where people usually congregate such as movie theaters, concerts, sporting events, and conventions, has been badly hit.
Here are 3 industries that are proving to be winners in the ongoing maelstrom.
#1 Work From Home
As people avoid unnecessary travel and work from home, remote work and telecommuting have become the new norm. According to a recent Fishbowl survey, 52% of American employees in diverse industries now work from home with the advertising industry holding the lead in remote work.
According to Morningstar, IM and collaboration platform, Slack Technologies (NYSE:WORK) could benefit from a remote worker theme. In the same vein, people who do remote work frequently require remote conferencing services like Zoom Video Communications (NYSE:ZM), with ZM stock up 88.2% in the year-to-date.
#2 Healthcare Telehealth--the distribution of health-related information and services via electronic and telecommunication technologies--has become the latest trend in the healthcare space. Teladoc Health Inc. (NYSE:TDOC), multinational telemedicine and virtual healthcare company has been flying with the shares up 75.6% YTD after president Trump recently endorsed the telehealth industry, encouraging the increased use of telemedicine during the COVID-19 outbreak. Last week, Vice President Mike Pence announced that health insurers will start paying for telemedicine services during the coronavirus pandemic. Teladoc is the top dog in the space, with over 36.7M U.S. members and completing ~4.1M telehealth visits last year.
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Interestingly, Gilead Sciences (NYSE:GILD) has been surging, too, thanks to its Ebola drug redeliver, one of a handful of drugs that have shown promising preliminary results in treating COVID-19.
Meanwhile, long-suffering Rite Aid Corp.(NYSE:RAD) investors finally have something to cheer about after RAD stock climbed 13.8% YTD with short sellers feeling the squeeze after the company’s latest earnings topper. In response to the coronavirus pandemic, Rite Aid has launched a home delivery service and says it will waive delivery-service fees for all eligible prescriptions. The company will also begin to offer drive-throughs for pick-up of prescriptions at more than 50% of its more than 2,400 retail locations.
#3 Entertainment
With most movie theaters throughout the country shut down amid the coronavirus pandemic, at-home entertainment has been benefitting.
And one big blast from the past ...
Drive-in theaters have been seeing a resurgence in popularity. Owners in California, Missouri, Kansas and Oklahoma have told the Los Angeles Times that attendance has been soaring as people start practicing social distancing to prevent the spread of the virus. There are 305 drive-in theaters in the U.S.
Meanwhile, indoor exercise bike maker Peloton Interactive Inc. (NYSE:PTON) is likely to see more business as gyms close and people work out at home.
Blue Apron (NYSE:APRN), a service that sends customers all the ingredients and instructions to cook a meal at home, have seen its shares surge 480% in the past week after CEO Linda Findley Kozlowski talked about ‘‘... a sharp increase in consumer demand," adding that the company plans to increase it capacity to fill more orders.
By Michael Kern for Safehaven.com
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