The Corona pandemic has badly affected economies in the past couple of months with both investors and markets experiencing an unprecedented slump. The U.S. Stocks were most severely hit on March 12, an extreme blow that was not witnessed since the 1987 crash. Although the list of companies crushed due to the spread of COVID is severely is high, the hope isn’t entirely shattered. Learn more on pattern day trading rule.
Among the company stocks that have stayed corona-resistant, are those battling the coronavirus, such as the biotech and pharmaceutical companies. These companies are either working on developing vaccines, tech companies, firms that are allowing remote work or companies that are providing sanitization, or entertainment for people locked inside.
Let’s take a look at the Stocks in the American Stock Market that have gained due to Corona –
The shares of Massachusetts based biotech company – Moderna escalated as soon as the company announced promising clinical vaccine trials. The positive interim data from the Phase I clinical study of Moderna’s experimental COVID-19 vaccine propelled its shares tremendously.
Since February, Moderna’s stock price more than tripled and has raised up to 240 percent in the year. Its shares opened higher at $86.14 against a previous close level of $66.69. Owning to investors’ optimism over potential coronavirus vaccine, the stock collected as much as 30 percent to hit a 52-week high of $87 in early deals on NASDAQ.
In pandemic circumstances, shares of companies which create vaccine are expected to buoy. Should Moderna succeed in creating a vaccine, the company’s stock will continue to flourish.
Gilead Sciences Inc. (GILD)
Another such example is of California based Biotechnology company – Gilead Sciences Inc. Following the news that Gilead Sciences Inc.’s experimental drug Remdesivir was working effectively on patients with severe symptoms of COVID-19, its stocks surged almost 10%.
Furthermore, the phase-III study of antiviral Remdesivir contributes to the fact that Gilead’s battle against COVID-19 is close to the late-stage clinical trials, thus adding to the company’s competitive advantage. Should the drug succeed, Gilead is expected to make substantial profits from countries looking for opportunities to stockpile Remdesivir against future outbreaks.
The stocks of AbbVie escalated owing to the company’s research on the efficacy of HIV drug Kaletra to treat COVID-19. Additionally, AbbVie also introduced several new immunology drugs in the market which could replace Humira’s disappointing sales decline – these include Rinvoq and Skyrizi, which are likely to take the baton from Humira.
AbbVie is also expected to boost sales from its franchise of haematology-oncology. Sales are soaring for blood cancer drugs Imbruvica and Venclexta.
In addition, with Allergan – its latest acquisition, AbbVie is expected to deliver solid market performance.
FAANG companies, the acronym for Facebook, Amazon, Apple, Netflix, and Alphabet (the G refers to Alphabet’s core company Google) have played a major role in battling the pandemic. Tech players are some of the few that have survived to put on a great show in the stock market.
Facebook surged above $220, owning to the company’s launch of Facebook Shops, which is a platform to make selling easier for small businesses. On Friday, May 22, the Facebook (FB) stock gained a new all-time highest closing price of $234.91.
Amazon and Netflix are also not far behind. On Wednesday, May 20, Amazon closed at a new record of $2497.94. On Friday, it slightly declined and closed at $2436.88. At present, Amazon shares are 1.24% up at $2,467.00.
On May 15, Netflix stock recorded a new all-time high at $454.19. Its shares however dropped by 2.55% following the announcement about inactive subscriptions. It is, however, a minor decline, not coming in the way of investors.
The rest of the FAANG stocks haven’t followed the trend. Apple and Google parent Alphabet are just 3% and 8% respectively below their all-time highs. On February 12, Apple’s highest closing price was $327.20, while the all-time high of Alphabet stock closed at $1524.87 on February 19.
Costco (COST) and Kimberly-Clark Corp. (KMB)
The market of consumer goods is always favourable in times of recession, and due to this, its shares do exceptionally well even in times of a derailed global economy. Consumer panic buying during the corona times buoyed the stocks of consumer giants – COST and KMB.
Costco has 785 warehouses worldwide, with 546 locations in the U.S. and 100 locations in Canada. In fiscal 2019 (which ended last September), Costco’s comparable store sales rose 6.1%. Its comps grew another 6.5% in the first half of fiscal 2020. In the second quarter, Costco’s comps buoyed to 7.9%, owing to buying of essential goods amid COVID-19. This further boosted its comps by approximately 3%. Costco’s e-commerce comps jumped by 17.3%.
Kimberly-Clark sells its products in over 175 countries. The demand for Texas-based blue-chip company Kimberly-Clark’s paper-based products surged throughout the crisis, these included tissues, toilet paper, paper towels, and diapers. The company’s stock, therefore, advanced about 8.6% in the past year against the S&P 500’s 5.5% gain. Furthermore, KMB has a plethora of essential products under its umbrella, such as sanitizers, toilet paper, wipes, soaps, among others, which continue to boost its sales. Kimberly-Clark has three main segments to its business: personal care, consumer tissue, and K-C professional products – which approximately generate 48%, 34%, and 16% of its revenue respectively.
The shares of Oakland based consumer and professional products company soared during the pandemic crisis, owing to the rising demand for its disinfecting products.
The demand for food and cleaning supplies during the corona times escalated, the shares of which are especially tied to household numbers, as consumers gave into buying products to clean and disinfect surfaces around their households, to prevent the spread of the highly contagious viral infection. This trend surged Clorox’s stock by 12% since the end of April.
The demand for the must-have commodity of Clorox disinfectant wipes in the age of COVID-19 has been proliferating, with the company even ramping up its production in order to cope with the high demand.
The Q3 fiscal 2020 Clorox’s sales climbed up 15% throughout the period ending on March 31, with revenue from its cleaning unit up 32%.
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