Stocks That Are Predicted To Rise Amid Market Drop
The coronavirus outbreak has caused stocks to take a massive tumble in the markets last week, but shares of select companies could still climb up amid the selloff.
Here are some stocks that are defying expectations in the market amid the panic over the coronavirus.
Pharmaceutical and healthcare companies
- Johnson & Johnson (JNJ)
- Gilead (GILD)
- Sanofi (SNY)
- Moderna (MRNA)
- Inovio (INO)
- Novavax (NVAX)
- Anthem (ANTM)
- Amgen (AMGN)
- Cigna (CI)
Some pharmaceutical companies working on vaccines and diagnostic kits for the coronavirus have seen a surge in their stocks last week amid reports of rising cases of the disease.
Last week, Gilead’s shares went up by four percent after the company announced that it is expanding the clinical tests for the antiviral drug remdisivir.
Meanwhile, the National Institute for Health is preparing to test a vaccine developed by Moderna. However, the company is still unlikely to release the vaccine by the end of this year.
Analysts have warned that vaccine development could still take months or even years, and not every pharmaceutical company that are attempting to develop a cure can actually produce one.
Some pharmaceutical companies like Gilead, Moderna, Inovia and Novavax are still expected to see some gains as the virus continues to spread across the globe.
Investors are also expecting the stocks of some healthcare companies like Anthem, Amgen and Cigna to jump up due to the outbreak.
Home entertainment and fitness
- Peloton (PTON)
- Netflix (NFLX)
- iQiyi (IQ)
Companies offering streaming services and indoor fitness products are seeing a rise in their stocks as more people are opting to stay indoors to avoid contracting the coronavirus.
Peloton shares soared 12 percent last week even as the broader market dropped more than 10 percent. Meanwhile, Netflix fell three percent in the past week, but the drop was not as big compared to other stocks in the market.
iQiyi, which some consider as the Netflix of China, also saw its stocks go up as most of the residents in the country opt to stay at home.
Food companies and groceries
- Dollar General (DG)
- Kellogg (K)
- Tyson (TSN)
Analysts expect food companies and stores like the Dollar General to stand out as people try to prepare for the outbreak by stockpiling food.
Cleaning products and preventative care
- Clorox (CLX)
- 3M (MMM)
The shares of Clorox have risen in the past month despite the selloff as the demand for bleach and disinfectants grew. 3M stocks also moved up in the past week amid the increasing demand for masks and respirators.
Most tech stocks have taken a beating last week, but some analysts predict that a few tech companies will see some gains amid the outbreak.
- Zoom Communications (ZM)
Video conferencing company Zoom Communications (ZM) saw an 11 percent rise in its stocks despite the huge drop in the market last week. Jim Cramer, the host of CNBC’s “Mad Money,” said that Zoom is the “No. 1 name to buy” during the selloff because it is the “ultimate stay-at-home” stock.
Cramer also expects Etsy to perform well among people who choose to buy or sell from the comfort of their own homes. He also predicted that RingCentral will be a popular choice for business that want to stay in touch with customers as people remain in their homes to avoid the outbreak.