While the coronavirus outbreak is devastating the economy and large components of the retail market,...
Which Stocks will Recover First?
03/30/2020 5:00 am EST
Which industries might recover more quickly that others? asks Crista Huff, growth and income expert and editor of Cabot Undervalued Stocks Advisor.
Buy shares in the products you buy at Kroger (KR) and WalMart (WMT). People are still buying food and household products: meat, cereal, candy, cotton balls, shampoo, OTC medicines, birthday cards, beer and cigarettes. Look for famous names within the consumer defensive sector.
You’re having a hard time finding chicken in the supermarket, right? Let me assure you that there’s no supply problem. The chicken is getting shipped to supermarkets, and people are hoarding it.
Suppliers are shifting their shipments from restaurants to supermarkets, and consumers are buying chicken as swiftly as it arrives in the freezer section of grocery stores.
Both of these companies are slated for strong profit growth in both 2020 and 2021. As a bonus, their share prices have already begun recovering, with lots of room for additional capital gains.
People are staying home and spending the entire day working, shopping and being entertained via electronics: computers, cell phones, iPads and TV.
While there might be small drops in quarterly revenue at companies like Apple Inc. (AAPL), for the most part, you can do some worry-free shopping among stocks associated with hardware & components, software, streaming services, internet services, advertising services, online retail and gaming.
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