Best Coronavirus Stocks To Buy Now: The covid-19 novel coronavirus outbreak devastated the stock market, putting the entire federal government into crisis mode and forcing the Federal Reserve, Congress, and White House to work feverishly on an economic stimulus plan.
While we’re definitely experiencing a historic market event, it’s doesn’t mean you can’t win. In fact, now may be the best time to invest in stocks if you have the money.
Those brands that survive this global pandemic will strengthen their market share, create jobs, and generate revenue to get us through these harsh times. If you have money to invest in the stock market, these nine companies could be on the cusp of knocking it out the park right now.
1. Netflix, Inc.
Netflix (NFLX) has long been competing against traditional movie and TV. Its dominance became even more apparent when the world was put on lockdown.
In fact, things got so bad that the company had to actually slow speeds and reduce picture quality across traffic in Europe by a full 25% to keep its internet running. That’s a clear sign that the service is receiving a massive uptick in usage with everyone staying home.
The verbiage “Netflix and chill” has long been used in dating scenarios, and even though it took a hit with everyone else in the market in early March, it regained much of those losses by the end of the month as legislators debated economic stimulus plans.
2. Amazon.com, Inc.
Amazon (AMZN) is finding itself flooded with business on all ends during the global pandemic. Although orders are taking up to one month as the company refocuses its massive distribution network on necessary medical supplies, it’s still generating revenues through its online stores, streaming services, and more for its over 150 million Prime subscribers.
And that’s just the start – Amazon is pushing full throttle to keep up with increased demand in each of its markets.
The company’s AWS web servers are used by many of the other top companies on this list, making them a valuable B2B service provider for other top-performing companies.
In addition, Amazon is hiring another 100,000 workers to help expand its already impressive reach. While other retailers struggle for relevancy in a new world, Amazon is only further asserting its global dominance over every market it serves.
3. Peloton Interactive Inc
It inspired a slew of parodies across social media, giving the brand a surprise boost in recognition at just the right time. State governors around the country ordered public gyms closed over concerns of spreading the novel coronavirus, making Peloton a surprise breakout star.
Suddenly, planning home workouts versus the cost of a gym membership made sense. The company also produces workout content and is one of few streaming fitness companies that continued in a closed studio amid the gym closures.
Peloton halted shipments of its higher-priced $4,300 treadmills, but it still delivers its exercise bikes, and orders are surging. As the world continues finding ways to be productive at home, Peloton is well positioned to service that need.
4. Slack Technologies Inc
Slack (WORK) has been a front-runner in the virtual work trend since it was founded in Canada in 2009. This proprietary instant messaging app is loved by small businesses leveraging remote teams that need open lines of communication.
Team rooms and private messaging functionality make it a robust communication tool, although critics routinely point out its data storage and handling policies violating user privacy.
Heading into the outbreak, Slack’s stock was on the rise due to its usage by employees of companies like IBM and Uber. It’s a relatively new listing that has a cheap price compared to many other investments on this list.
The stock isn’t experiencing the immediate gains of others on this list either. That doesn’t mean it’s a bad investment – because it’s a product focused on team collaboration, Slack has future prospects, even if it’s just being acquired by a larger competitor.
5. Zoom Video Communications Inc
Zoom (ZM) emerged as a hero (or villain, if you’re a kid hoping for an extended vacation) in the covid-19 pandemic. The video conferencing tool was designed for meetings or webinars, but it soon found itself being used for birthday parties, weddings, college parties, online learning, and more.
What was once an obscure, little-known business tool now has brand recognition across popular culture and mass media.
In fact, Zoom stock stands in stark contrast to the rest of the market. Its stock climbed in February and March, and it’s experiencing all-time highs in value.
If you invested in Zoom in December 2019, you’ve already doubled your investment in the first quarter of 2020. Businesses may reopen in April, but most schools are closed until next the fall 2020-21 school year. So long as its servers stay up, Zoom will continue as the du jour social distancing app.
6. Teladoc Health
Teladoc has been steadily climbing since 2020 began because of the focus on in-home healthcare during a worldwide pandemic and quarantine. It’s the exact spark the company needed to jumpstart the market.
As clinics and hospitals work to retain the virus spread, telecare is becoming more commonplace. Teladoc’s stock shows that interest in its offerings will remain strong and steady for the foreseeable future.
Analysts across the board consider it among the strongest investments through 2020, due to sitting in that 2020 sweet spot between healthcare and enabling virtual communication.
7. Walmart Inc
Walmart (WMT) is one of the largest companies in the world. While Amazon destroyed most other retailers, Walmart leveraged its physical real estate and digital marketing to remain competitive. It partnered with delivery services like Instacart and Postmates to compete with Amazon/Whole Foods in grocery delivery.
As panic shopping hit the consumer market, Walmart’s empty toilet paper shelves spread and became the measuring stick of how society is adjusting.
Like Amazon, Walmart has a strong third-party marketplace online. It also has a widespread logistical footprint and is leveraging third-party contractors for that last-mile delivery service.
During the coronavirus outbreak, the company offered special senior hours in the morning. It also raised minimum wage for its ecommerce workforce and gathered large crowds in otherwise empty retail parking lots.
8. Walt Disney Co
Disney (DIS) stock tanked in 2020, and it’s being heavily impacted by the coronavirus pandemic. Closures of Disney theme parks around the world are projected to cost the company over $500 million in lost admission revenues. Its subsidiary ESPN is scrambling for coverage with no professional sports leagues playing.
The lack of an NBA season is estimated to cost Disney $385 million this year. But it’s not all bad news, and the House of Mouse has plenty to look forward to on the next upswing.
Disney Plus had 28.6 million subscribers before the pandemic began, and with studios pushing content past theaters into streaming services, it can capitalize on its distribution channels for revenue. Its direct-to-consumer business accounted for $4 billion in revenue, as of its 2019 year-end financial reports.
That said, the company quickly raised $6 billion in debt to handle the situation and make the appropriate moves. If you believe in Disney, it’s heavily discounted right now.
9. Gilead Sciences, Inc.
Gilead (GILD) is a company you’re going to have strong opinions about. The antiviral drug company was founded in 1987 and was ahead of the curve in creating a covid-19 coronavirus vaccine. Of course, critics aren’t happy because it secured a de facto monopoly by obtaining “orphan status” with the Food and Drug Administration. This grants Gilead tax breaks, sales exclusivity, and the right to set pricing.
This sent the company’s stock soaring, showing impressive gains since the outbreak was upgraded to an emergency. Regardless of how you feel about the company securing its intellectual property during a crisis, it happened. This puts Gilead in a strong position to secure funding and revenue opportunities over the next decade. It can continue to benefit from mass awareness of viruses.
Best Coronavirus Stocks To Buy Now Summary
None of these nine investments are guarantees. Each has risks associated, and the timing of your investment will greatly impact your investment performance.
With all that said, these are the stocks that stuck out during the worldwide pandemic that made history in 2020. Be sure to perform your own due diligence before investing, as this is not financial advice.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.