A Watch List to Nibble On

03/19/2020 5:00 am EST

Focus: STRATEGIES

Chris Preston

Investment Analyst, Cabot Wealth Network

The nature of this market decline has been breaking some rules, so there are no sure things. Whether you’re building a watch list or looking to nibble this list of stocks is a great place to start, suggests Chris Preston, editor of Cabot Wealth Network.

Gilead Sciences (GILD) and Regeneron Pharmaceuticals (REGN) are drug makers, and while their drugs won’t cure COVID-19 coronavirus, some healthcare stocks—particularly fast-growing companies like these two—are getting the benefit of the doubt right now.

Newmont Corp. (NEM) is the world’s largest gold miner. In times of crisis, gold stocks are a traditional safe haven for fearful investors—hence the bump there.

Zoom Video (ZM) is a cloud computing company that provides remote conferencing software—a service that is in very high demand now that large swaths of the global population are either not permitted to congregate in person or afraid to.

Domino’s Pizza (DPZ) stock is living off a monster gap up on February 20 after the company reported very strong fourth-quarter earnings. DPZ is down considerably in recent weeks since, though not nearly as much as the market.

Vipshop Holdings (VIPS) looks like the real surprise winner. It is, after all, a Chinese company. But shares of this discount online merchandise retailer jumped 27% in one recent trading session after the company reported much-better-than-expected fourth-quarter earnings.

Should you buy any of these against-the-grain large-cap stocks right now? You could. But I wouldn’t go snatching up all of them. When there’s this much turmoil and uncertainty in the market, it’s best to keep new buying to a minimum, instead holding plenty of cash for the inevitable market rally.

That’s when the real money will be made. Whether it happens three weeks from now or three months from now, who knows? But eventually, stocks will bounce back. When they do, opportunities to profit from the rebound will be many.

Having not only held up but flourished in the midst of the current sell-off, these six large-cap stocks look well positioned to continue their rise once the rebound arrives.

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