5 Stocks to Make the Most of the Deadly Coronavirus Resurgence
Newly confirmed coronavirus cases continue to increase, raising doubts about the V-shaped economic recovery. After all, more than 30,000 additional coronavirus cases were reported in the United States on June 19, the highest number of one-day infections since May 1, according to data compiled by Johns Hopkins University.
In addition, the number of new weekend cases has hit records in some states. When businesses reopened, countries in the South, West and Midwest were hardest hit by the increase in the number of coronavirus cases.
On June 21, California saw new cases increase to 4,515, the highest one-day surge in the state amid the pandemic. Similarly, new cases in Florida reached a daily record of 4,049 on June 20, while the cases increased another 3,494 on June 21.
In addition, states such as Arizona, Nevada, Missouri, South Carolina, Montana and Utah reported a record one-day increase in new cases over the weekend, raising concerns about another blockage that could affect the country's reopening process.
In the meantime, Apple announced that some stores are closing as conditions worsened, while a trading group confirmed that cruise lines will stop all cruises by September 15. In addition to concerns, the WHO recently said it was. The pandemic remains deadly and should not be taken lightly.
But with the surge in new cases, there are stocks that will win. As a result, keeping an eye on some of these stocks is not a bad thing from now on. Look here -
Game Maker Activision Blizzard
The spread of the deadly virus will surely force everyone to stay at home, increasing the need for home entertainment. And when people turn to digital entertainment, Activision Blizzard, Inc ATVI is sure to benefit.
Activision Blizzard's Warzone Battle Royal game Call of Duty: Modern Warfare was one of the best-selling games in the first quarter, according to the NPD. It was also the most profitable game in the 12 months to March 31st.
Activision Blizzard reported that almost 50 million people played Call of Duty: Modern Warfare in the first quarter. As more and more people stay at home, it is generally expected that the numbers will increase and increase the company's return on sales.
Activision Blizzard currently has a Zacks Rank 1 (Strong Buy). The Zacks consensus estimate for the current year has increased by 11.7% in the past 60 days. The company's expected profit growth rate for the current year is 23.1%. The full list of today's Zacks # 1 Rank (Strong Buy) stocks can be found here.
AI Stock - NVIDIA
The increase in cases can disrupt industry, but it can also accelerate the adoption of AI. After all, AI has touched almost everything, including advertising, healthcare, robotics, retail, video streaming, gaming, and urban development.
And NVIDIA Corporation NVDA is one of the biggest names when it comes to graphics processors (GPUs) that are used more or less by all major technology companies to help servers implement machine learning services, which in turn is an integral part of the broader one AI is the market.
NVIDIA currently has a Zacks Rank 2 (Buy). The Zacks consensus estimate for the current year has increased by 3.8% in the past 60 days. The company's expected profit growth rate for the current year is 36.4%.
Streaming giant - Netflix
Netflix, Inc. NFLX is ready to add millions of subscribers to house arrest after the second wave of the coronavirus outbreak. In fact, the streaming service provider has been expanding its subscriber base for some time, mainly due to the strength of the content, the focus on originals in various genres and languages, the rapid international expansion and partnerships with telecommunications companies.
To top it off, Netflix participated in this year's Oscars with 24 nominations and went with two of them. Such profits will surely help attract and hold subscribers in the face of the challenges of competing services like Disney + and Apple TV +.
Netflix currently has a Zacks rank of 2. The Zacks consensus estimate for the current year has increased 0.2% over the past 30 days. The company's expected profit growth rate for the current year is 55.7%.
Cloud Service Provider - alphabet
The majority of people will also work or study remotely, so most companies will have to move a majority of their workloads to the cloud.
Needless to say, Alphabet Inc.'s Google Cloud is one of the three major players in the U.S. cloud infrastructure market. Obviously, this will help the company to benefit from the tailwind of corona virus-related cloud computing in the coming quarters and to drive Alphabet's overall growth course.
Incidentally, Alphabet's digital advertising business is unaffected by the coronavirus rush as consumers continue to engage in YouTube and Google search.
Alphabet currently has a Zacks Rank 3 (Hold). The Zacks consensus estimate for the current year has moved 1.1% north over the past 60 days. The company's expected profit growth rate for the next year is 33.1%.
Supplier of fitness products - Peloton
Peloton Interactive, Inc. PTON manufactures in-house exercise equipment such as treadmills and stationary bikes that are likely to be popular with fitness enthusiasts today.
Peloton currently has a Zacks rank of 2. The Zacks consensus estimate for the current year has risen by 42.6% in the past 60 days. The company's expected earnings growth rate for the next quarter is 90.7%.
Zack's top 10 stocks for 2020
In addition to the stocks above, would you like to learn more about our 10 best buy and hold tickers for the whole of 2020?
Zack's top 10 equity portfolio of 2019 last year saw gains of up to + 102.7%. A brand new portfolio of over 4,000 companies has now been selected that falls under the Zacks rank. Don't miss your chance to take part in these long-term purchases.
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NVIDIA Corporation (NVDA): Free stock analysis report
Activision Blizzard, Inc (ATVI): Free stock analysis report
Netflix, Inc. (NFLX): Free stock analysis report
Alphabet Inc. (togetL): Free stock analysis report
Peloton Interactive, Inc. (PTON): Free Stock Analysis Report
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