[Editor’s note: “10 Stocks to Buy as They Ride a Coronavirus Tailwind” is regularly updated to include the most relevant information available.]
After suffering one of the worst declines in history, the investment markets mounted a comeback in the second half of March. Even this small piece of optimism appears to be failing, though, due to enormous fundamental pressures. Nevertheless, not everything is melting down. Certain industries may offer what I’ll call, for lack of a better phrase, coronavirus stocks to buy.
For this list of publicly traded companies, I’m focusing on names that are mostly relevant to the present crisis. While virtually all sectors have printed red ink, a few individual companies either have performed surprisingly well amid the chaos or have pertinent businesses that are on discount. Additionally, many of these coronavirus stocks to buy offer upside potential once we get through this awful season.
Over the last few weeks, we’ve seen radical changes in our society. Just a month ago, we never heard phrases like “social distancing” or “flattening the infection curve.” Now, they’ve become part of our everyday lexicon.
As well, certain household products which we’ve never given a second thought to are now considered the modern-day gold coin. Of course, some analysts may assume that once the pandemic dies down, demand for coronavirus stocks may die with it. However, that might not be the case.
Consider that the Great Depression forever changed American life and the generations affected by it. For better or for worse, the hoarding of essentials may become permanently etched into our memory. Though many states are reopening from mandatory shutdowns, this painful period of sacrifice will not be forgotten.
Here are the ten coronavirus stocks to buy for our new normal.
Coronavirus Stocks to Buy: Teladoc Health (TDOC)
Back in the good ole days when my biggest concern was the outrage I felt that the Houston Astros – remember those guys? – could keep their ill-gotten World Series title, I liked Teladoc Health (NYSE:TDOC). However, I didn’t quite like the price tag on TDOC stock. Well, with the smelly stuff hitting the proverbial fan, Teladoc is one of the few coronavirus stocks that will enjoy perhaps universal bullish consensus.
You want to talk about social distancing? With Teladoc’s smartphone app, you can have all the social distancing you want. Obviously, this is a net positive for the patient. However, in the age of the disease known as Covid-19, the safety of medical professionals is also paramount.
According to the Wall Street Journal, during the peak of the crisis, our healthcare infrastructures suffered myriad problems, including recently financial pressures. Thus, it is absolutely vital that doctors and medical professionals be protected during this crisis. And Teladoc will help not only in this outbreak but also for other contagious diseases in the future. Under our new paradigm, TDOC stock is an easy buy among coronavirus stocks.
Gilead Sciences (GILD)
Obviously, pharmaceutical firms have experienced a surge in momentum as they race to find a Covid-19 treatment. Out of these industry-specific coronavirus stocks to buy, I’m looking carefully at Gilead Sciences (NASDAQ:GILD). Like other competitors in the field, Gilead got to work immediately on a vaccine. But with regulatory approval a long time away, health experts are looking at currently available treatments. This obviously helps the case for GILD stock.
According to NPR, Gilead’s antiviral, intravenous medicine remdesivir has garnered significant interest. Given its potential to address Covid-19, the drug underwent and is still undergoing multiple clinical trials across the globe. Recently, White House health advisor Dr. Anthony Fauci expressed his support for remdesivir due to encouraging results in reducing Covid-19 recovery time.
Interestingly, the Food and Drug Administration never approved remdesivir, nor did any other country’s regulatory agency. Basically, GILD stock may have new life thanks to a retreaded product.
Inovio Pharmaceuticals (INO)
A smaller-capitalized competitor to Gilead, Inovio Pharmaceuticals (NASDAQ:INO) has nevertheless made one of the biggest splashes among coronavirus stocks to buy. Long mired in mediocrity in terms of market performance, INO stock exploded higher when Inovio announced a possible vaccine. From just the genetic profile of the coronavirus, the company utilized their proprietary technology to produce this potential solution.
In a way, INO stock has a near-term and long-term narrative. Logically, with several pharmaceutical companies racing for a viable treatment, Inovio should attract interest. Yes, there’s much competition. However, this is a dynamic situation.
More importantly, Inovio’s capability of fast-tracking a vaccine without physically receiving a sample of the virus is impressive. Right now, INO stock is taking a hit so you wouldn’t necessarily want to dive into this speculative name. Still, when shares calm down, you may want to consider it with money you can afford to lose.
True, Gilead’s remdesivir has sucked the momentum out of INO. But because the world is now focused on infectious disease mitigation, Inovio has received a booster shot of relevance.
Synonymous with cleaning products, most people know about Clorox (NYSE:CLX) perhaps by muscle memory or instinct. One thing is for sure though: prior to the pandemic, I’ve never fielded a question from someone interested in buying CLX stock. Well, this is one more item to include in our new normal. Among coronavirus stocks to buy, Clorox is easily the sexiest.
Once panic hit our communities, this brand flew off the shelves. Now, it’s gotten to a point where if someone had a choice between a “Bennie” and a Clorox hand sanitizer, they’ll probably pick the latter. That’s one way to justify buying CLX stock.
Another? I think this outbreak may forever change our consumer psyche. Even after the coronavirus fades away, we will likely stock up for the next big virus, just in case. This gives CLX stock a longer upside pathway.
Due to the incredible volatility that we’ve seen, Honeywell (NYSE:HON) is by no means a sure thing. Currently, shares have turned negative once again as economic vulnerabilities have recently come to the forefront. Still, HON is one of the most relevant coronavirus stocks to buy.
As you know, N95 masks were immediately taken off the shelves. Using no hyperbole, this inventory shortage created a national security risk as hospitals were running short themselves. In response, Vice President Mike Pence appealed to both Honeywell and 3M (NYSE:MMM) to step up production.
Of course, this was a temporary catalyst for HON stock. Frankly, the news has only briefly benefited HON stock. At the same time, Honeywell offers many utilitarian products that may also rise in demand.
As well, consumer priorities will likely shift because of this pandemic. Therefore, HON stock still has upside potential once this period of volatility fades.
Home Depot (HD)
Perhaps no other retailer has received as much interest during this crisis as Costco (NASDAQ:COST). When Covid-19 started making headway at home, people bum rushed their local Costco stores to stock up on the essentials. But I think Home Depot (NYSE:HD) will start to get some love. Though HD stock – like so many others –saw red in March, the underlying company is a vital cog in our communities.
If you think about it, Home Depot is like the U.S. Postal Service. Through hurricanes, earthquakes and other Acts of God, Home Depot is open to serve the core needs of the public. Once people go through their 800 gallons of mayonnaise, they’ll realize that home renovations don’t wait for pandemics.
Whether it’s light bulbs that need replacing or a smoke detector that won’t shut up, Home Depot has got your back. Therefore, this is a great time to consider HD stock.
As cases of Covid-19 began spreading across the U.S., many companies urged their employees to work from home. Thus, the concept of telecommuting is no longer an alien luxury. In many states, it remains a mandatory order. In this environment, you have many obvious names to pick from. But investors may want to take a look at Dynatrace (NYSE:DT) and DT stock.
A new name, Dynatrace had its initial public offering in summer 2019 and it’s made a huge impact. What makes them stand out is not just that they offer enterprise-level, all-in-one cloud-based solutions but that they have resilient infrastructure that enables apps supported on their platform to perform on demand, all the time. As everyone works from home, this resilience is a critical factor.
Plus, this outbreak gives Dynatrace the opportunity to showcase its advantages over the competition. Don’t get me wrong, there’s risk involved with a new name like DT stock. Still, this is also one of the more compelling names among coronavirus stocks to buy.
Zoom Video Communications (ZM)
Admittedly, most of the coronavirus stocks to buy that are featured on this list have seen wicked volatility. When Wall Street panics, few are left unscathed. I hate to use this hackneyed phrase but it is what it is. However, Zoom Video Communications (NASDAQ:ZM) has decisively bucked this trend. On a year-to-date basis, ZM stock has jumped 107%.
To be fair, skeptics may point out that Zoom will lose its luster after the coronavirus fades. But on the other hand, delays in the federal response contributed to the U.S. becoming the coronavirus epicenter. Therefore, key states such as California or New York are reluctant to reopen their states.
In other words, that’s a lot of people suddenly forced to telecommute. And that might not change for some time. Cynically, Zoom has the nation’s biggest hostage audience. Honestly, this is a huge deal for ZM stock.
From the get-go, I’m going to say that you shouldn’t rush to buy supplemental insurance provider Aflac (NYSE:AFL). As the weeks turn into months, the company is likely to face several claims. At the same time, the markets are back in turmoil. Not surprisingly, the federal government has thrown everything they have at this pandemic.
In turn, such actions will likely reduce yields, which does not help AFL stock. To quickly summarize, insurance companies take premiums from their clients and invest the money into high-quality, low-risk investments. However, low yields kill returns in these vehicles.
So, why am I talking about AFL stock in this gallery of coronavirus stocks to buy? It goes back to my previous argument: the Covid-19 pandemic could permanently change people’s behavior, resulting in greater demand for supplemental insurance.
I would just wait for the present volatility to calm before considering a position in Aflac.
Sturm Ruger (RGR)
Guns are controversial. Personally, I believe the Second Amendment should stand as is because let’s face it: you can’t depend on the government for anything. Indeed, the delayed Covid-19 response and the general sense of confusion across the political aisle proves this point. As well, fears of social unrest have bolstered Sturm Ruger (NYSE:RGR) and RGR stock.
Predictably, millions of Americans have stocked up on firearms and ammo. Amid this frenzied buying, though, is a curious demographic: Asian Americans. Fearing a racist backlash for the coronavirus – and our leadership isn’t helping matters here – many of them are now armed.
Good for them and for all Americans who take their personal safety seriously. If you want to depend on your local law enforcement agency to protect you, that’s also fine. But I think we can all agree that RGR stock is a very relevant name right now.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he did not hold a position in any of the aforementioned securities.