Earlier this week, stocks felt their steepest losses since the 1987 market crash as the Dow plunged almost 3,000 points, marking the second-worst day in its history.
And all this despite the series of aggressive measures announced by the Fed to shield the economy from coronavirus impact.
On Monday, Trump acknowledged the possibility of the country heading into a recession and that the spread of the coronavirus could continue through July or August.
Schools are closing nationwide, professional sports are canceling seasons. Business travel, conferences, now leisure travel — everything is being cancelled, and we’ve gone into bunkering mode.
This is the “coronavirus economy”, and it’s hard to find anywhere to safely park you money in the stock market.
But some industries and companies are actually showing a decent buying position.
These 5 stocks could get you through the pandemic without losing your shirt and possibly even make you a few bucks:
#1 Clorox (NYSE:CLX)
For obvious reasons, as the coronavirus continues to spread, Clorox, the maker of disinfectant wipes, has benefited immensely, with its products now becoming a luxury. The cleaning supplies company is one of the few stocks defying the trend today.
Trading at $196 a share on Tuesday, CLX is up almost 4% over the past month and stands to benefit long-term as some investors believe that new and improved personal hygiene practices will outlast the coronavirus pandemic.
As of March 9, Clorox is issuing a 2.41% dividend.
#2 Gilead Sciences (NASDAQ:GILD)
With the stock currently up by about 10% since early February, American biotechnology company Gilead Sciences has emerged at the forefront of response and is showing promising preliminary results in fighting the coronavirus.
Gilead’s stock was up by about 13% between February 1, and March 12, after the WHO declared a global health emergency. If the company succeeds in its trial for Remdesivir for the treatment of Covid-19, it will likely be a major positive driver for this stock.
#3 Netflix (NASDAQ:NFLX) Netflix stock is also losing out, but it’s likely it still hasn’t started reaping the benefits of “bunkering” that has gotten started. The more people start staying at home, the more the streaming giant will become a part of hourly life.
Related: Dow Drops 1,800 Points As The Fed Slashes Interest Rates To Zero
There will be a slowdown in releasing new series titles as many companies are delaying production due social distancing recommendations. Still, with people looking for ways to occupy their time at home and that same social distancing nationwide, streaming services like Netflix stand to benefit--even if it means watching a lot of reruns.
With 167 million paying global subscribers, Netflix was well-positioned businesses even prior to the current coronavirus scare. Analysts expect that number to increase by almost 17% in the current quarter. Netflix shares have declined 2.6% since the start of the year, but some analysts still predict upside of at least 16%.
#4 Kroger (NYSE:KR)
The run on groceries to stock up has seen grocery stores witness unprecedented demand and Kroger, among many, is working hard to meet that demand.
Unlike some, Kroger has chosen not to limit its hours.
Shares of Kroger were up nearly 10% on Tuesday, impressive performance compared to the broader market's plunge. As of March 9, 2020, Kroger stock has risen 11.07% year to date and pays a 1.91% dividend yield.
The company is also hiring new workers from among the pools of people who are currently out of a job because of the coronavirus.
#5 Amazon (NYSE:AMZN)
If you’ve got extra money to invest and can afford this wildly priced stock at $1,798.94, then it’s probably a good bet.
Many consumers have turned to online shopping to meet their needs and maintain social distance during the coronavirus outbreak. That’s weighing on delivery times, of course, as well as on supply--but so far, so good.
Be cautious of massive demand that could strain Amazon's processing, but if you can hold out, the long-term means more revenue for the digital retail giant.
Prior to the outbreak, Amazon's first-quarter net sales growth forecast already was bright, with expectations for a gain of 16% to 22%. The company’s stock is down by about 16.5% since February 1, after the WHO declared a global health emergency.
Amazon also said it will hire 100,000 workers to assist with online deliveries in the U.S. and raise their minimum pay to at least $17 an hour through April.
By Michael Kern for Safehaven.com
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