Rising Stocks That Are Going Up While Other Commodities Are DecliningBy Taimoor T
With the coronavirus hitting the globe like a speeding freight train, it is clear that we have been heralded into uncertain times. Nothing seems to be certain and there is definitely a lot of unpredictability in the air.
The contagion has forced the shutdown of some of the most crucial institutions that have been literally carrying the global economy for decades.
Stock prices have plummeted and the U.S stock market has taken the heaviest hit with S&P 500, Dow and Nasdaq going down like never before.
Amid this backdrop of volatility, we try to find the silver lining for investors.
The pandemic isn’t going to go away anytime soon so investing in stocks would require more than just good judgment. Investors need to focus on a long-term investment philosophy.
Here we take a look at stocks that have gone up since the whole world was thrown into a crisis.
The remote conferencing services company has been making a real killing in an environment where the coronavirus has pretty much-brought everything to an abrupt stop.
As more and more companies instruct their employees to work remotely, Zoom has become the go-to platform to ensure productivity is not completely affected.
While the company’s stock price stayed the same on Tuesday, Zoom’s subscriber numbers are bound to increase as some of the biggest firms continue instructing their employees to work from home.
Adobe’s stock sank 4% and while the software giants have already indicated that second-quarter sales are going to take a hit, their shares have been rising and been outperforming the S&P 500.
With COVID-19 forcing school closure, Adobe has started giving more access to its Creative Cloud platform as they seek to do their bit in fighting the contagion. Temporary at-home access for students and educators have played a big role in the stock price improvement so this is one stock that is a must-have.
While many companies are experiencing turbulent times due to the global pandemic, tech giants such as Facebook, Amazon, Apple, Netflix and Alphabet (FAANG stocks) are going to endure.
With E-commerce becoming a go-to, consumers will be opening their laptops and heading over to their Amazon profile to place orders. Grocery sales are going to decline as the lockdown continues and this is where Amazon’s delivery system comes in.
With streaming video demand increasing, Prime Video is going to be one of the many streaming platforms that would see their numbers increase as people look to gobble as much content as they can.
Tesla’s shares soared by about 10% in the last week of March in 2020. And while oil prices continue to go down as demand decreases, the electric-car manufacturer is still going about its business in the stock market.
President Trump has already hinted at the importance of car manufacturers to resume operations which means that Tesla could be in line to deliver more than 500,000 of its vehicles this year which is something Elon Musk has been talking about in recent weeks.
This is definitely one stock that is going to continue its rise.
While it is not surprising to see Uber’s business going through a serious decline, looking more deeply into things tells us why Uber’s stock is still doing so well.
Uber has diversified its business in recent times from a hailing platform to services such as Uber Eats.
Moreover, CEO Dara Khosrowshahi has revealed that the company had $10 billion in cash at the end of February and access to a $2 billion debt revolver which means that share price isn’t going to be affected as rides businesses everywhere continue to experience a rapid descent.
The Walt Disney Company
Disney’s stock was up 13% in midday trading in the last week of March and this was their best performance in the past 15 years.
This surge comes at a great time for the entertainment giant after its stock dropped 27% last month due to the COVID-19 outbreak which forced the company to close its theme parks and movie theatres.
And while the company is actually scaling back on its usage in other European markets, Disney’s stocks are there to be bought and are getting a good buyer rating from several analysts.
The company produces software that automates contract filing and also verifies the electronic signature. In the latter field, DocuSign is in competition with Adobe. In light of recent events, DocuSign is also experiencing a great period of resurgence in the stock market, rising 5% since it went up during the first 1-2 weeks since the Covid outbreak.
As more and more companies start working remotely, DocuSign’s technology is becoming essential to the workflow. With an EPS Rating of 84, this company is going to be profitable in the long run regardless of the devastation caused by COVID-19.
The American e-commerce website that focuses on handmade and vintage items, is definitely making a killing out there at the moment. Following a strong fourth-quarter report, Etsy’s shares have surged and the e-commerce business is becoming one of the fastest-growing remote stocks in the market.
With a surge of 14%, this is a must buy or even a great selling stock.
The Massachusetts-based biotechnology company is currently leading the race to create a coronavirus vaccine and its shares last traded at $26.16. the stock also jumped almost 57% at the beginning of the last week of March in 2020 as the biotech giants look to finally create a vaccine that will put an end to the havoc wreaked by COVID-19.
While health stocks are never reliable in all honesty, the current state of things is such that this is one of the must-have stocks for now and is likely to grow in size and stature as days go by.
The California-based cloud communications and collaboration solutions provider is another company that is making a good surge on the stock market at the moment. Shares have gone up to $235.73 since it went up during the first few weeks since the Covid outbreak.
The company’s workplace solutions are in great demand due to the pandemic and they are likely to surge further as demand increases in the coming days.
RingCentral allows subscribers to make VoIP calls and send text messages. Apart from this, the platform also enables file sharing and to hold video conference calls which makes it an important tool to have some workplace productivity intact at a time when remote working ideas are gaining a lot of traction.
While the risk of global recession is going to damage to a lot of e-commerce companies, Shopify is definitely bucking the trend and is experiencing the sort of slump in its stock that was never really on the cards earlier this year.
Following promising quarterly results, Shopify’s stock was topping out at $593.89 on Feb. 12.
In the long run, Shopify is going to go for a much larger piece of the retail pie. Shopify is a very solution-oriented business and caters for all sorts of customers which is why its stock is likely to make a killing in the coming weeks.
Square, Inc. is a financial service and mobile payment company based out in San Francisco, California. The company’s core business involves marketing several Softwares and hardware payments products and in recent times has branched out into small business services.
The company’s stock closed in at $40.01 and is expected to rise further. The stock has been outperforming other fintech stocks such as PayPal Holding and Visa earlier this year so this one is definitely a buy. With so much growth potential, expect Square to become a solid buy in the fintech realms.
Telemedicine company, Teladoc saw its stock value surge 15.7%. This company is doing really well and its stock is up more than 60% this year.
With the COVID-19 bringing everything to a standstill, telemedicine is rapidly becoming a huge thing in the United States. Connecting doctors with patients remotely, this company is going to play a crucial role in the fight against the global pandemic.
The stock closed at $167.44 and is expected to continue its rapid rise so this is definitely one stock you must buy or hold on to since the price is definitely going up in the coming days.
The clinical-stage vaccine company’s stock was up 29% premarket on the last week of March following a successful NanoFlu study.
Now, this was a company whose stock was rumoured to be going down but tables have definitely turned on this one after the Phase 3 clinical trial was a resounding success. Now, the company is looking to bring a Fast Track-tagged NanoFlu to the market as early as possible.
The management is set to host a conference call about it later this week to further discuss the results of the trial.
After experiencing a downward trajectory since the beginning of the year, Exxon’s stock price experienced a 12.69% rise on the second week of March. With a 12 months price to earnings ratio of only 9.75, this stock carries some decent value.
With the least leveraged balance sheet among its peers, Exxon likes to do things carefully even if it has lagged behind in production growth this year. And with a good dividend return, ExxonMobil’s stock is definitely a safe bet to make in these testing times.
Pioneer Natural Resources
The Irving-based hydrocarbon exploration company’s stock has risen this week, up 18.49%. The company has already decided to slash its CapEx this year and hold off oil production. However, in spite of all this, Pioneer Natural Resources is one of the fastest-growing oil producers in the world and is looking to generate free cash flows in an oil environment where prices continue to go down.
Boasting a strong balance sheet, this company can withstand the test of time, Pioneer’s stocks are the best kind on the market at the moment and worth investing in.
In its most recent earnings, Nike’s revenue rose 5% to $10.1. Digital sales have started playing a crucial role in the company’s success and while analysts expected the apparel giant’s earnings per share to fall, that wasn’t the case.
Sales in China are getting back to their lofty numbers now that the country starts recovering from the COVID-19 crisis. Nike stores have been open in China but closed in North America and Europe.
But despite all this, the company’s stock rose 10% on the second to the last week of March even though it has still trailed the S&P 500.
The Argentine company operates online marketplaces and is definitely working some magic to stay upwards in these times. The company’s stock rose 7.07% on Tuesday even though its recent moves suggested otherwise.
The company has started cutting commissions for essential products in a bid to fight against COVID-19. MercadoLibre is aiming to allow basic products to reach those in dire need.
Keeping prices of anti-COVID items on check and banning users who are selling items at extortionate prices means that MercardoLibre is showing a lot of responsibility in the e-commerce business which is why its value is going to continue to grow.
Definitely a stock to buy!
Freeport is a mining company based in Phoenix, Arizona and its stock was up 29.68%. The company has decided to suspend its dividend due to the corona crisis and will be reviewing costs with production cuts.
And though the price of copper is going down, the company’s liquidity position is good so panic selling would be the last thing on your mind if you own this stock.
This company is looking towards a cautious approach in an unpredictable environment so while its peers might be struggling in the long run, Freeport is likely to do well in the long term.
The US-based semiconductor company produces 10G-600G high-speed and mixed-signal semiconductor components and optical subsystems. The company stock price was up 21.02% on the second to the last week of March.
The shares have a Buy rating and are going to continue to rise only due to the fact that the Chinese semiconductor company isn’t really having the best of times at the moment.
And while the market will be back to its old self, Inphi has been given a great opportunity to play catch-up and improve its EPS in the coming weeks.
Thomson Reuters Corp.
The Canadian multinational media conglomerate started the year in a not so promising position but its stock has risen slowly. On the last week of March, the stock closed at 7.69% and is expected to perform better in the coming weeks.
But this is a volatile stock since the level of the stock price has been fluctuating throughout 2019 and year to date.
Traders have shown interest in the stock but analysts rating suggest that this is a stock that can either be bought or held on to for the foreseeable future. However, the next 52-week period is going to give a better reading of things.
Johnson & Johnson
The diverse healthcare giant that deals with consumer products, medical devices and pharmaceuticals closed on the last week of March.
JNJ has been testing variants of coronavirus vaccine and knows a thing or two about surviving recessions, having done so six times in its 133-year history.
The company has been thriving due to the nature of its products and some prudent management. Traders prefer to hold on to their shares since JNJ’s earnings and dividend have grown in times of recession.
Not many companies do well during recession and JNJ is one of those companies. The company’s growth rate has been on the rise for 57 consecutive years so if you have a JNJ stock lying around somewhere, we suggest to keep a hold of it since the payoff would be pretty sweet.
The American beauty store giant has been doing really well since the turn of the year with its share prices up 23.98%. The company is set to reduce its capital expenditure due to the COVID pandemic.
Temporary store closures may have affected growth but Ulta Beauty’s online shopping facility gives the company the edge.
The semiconductor giants are literally giving the likes of NVIDIA and Intel a run for their money. Carving quite a reputation among the gaming community, AMD’s stock closed on the second to the last week of Tuesday up to 11% and the company’s trajectory is definitely on the up.
This is definitely going to be one of the best stocks to own this year. There was a time when AMD was struggling in face of competition from Intel.
Today, however, things have changed with the new Ryzen processor and some really great graphic cards options making AMD a must-have when it comes to performance machines.
Like most companies, Intel’s stock took a beating once the corona situation started becoming a global pandemic, the company’s stock has now stabilized and is improving. On the second to the last week ofMarch, Intel’s stock was up 5.69%.
Amid the coronavirus outbreak, Intel’s stock has been changed from neutral to sell and that is despite potential competition in the high-end CPU markets, Intel’s products are going to prove crucial as remote working becomes a thing.
The Delaware based tech firm is making great strides in the evolution of the gaming industry, thanks to its graphics processing units that are up there with the best.
The company’s stock was up 17.16% on Tuesday and with the workplace market looking to work remotely, NVIDIA’s stock will go up further.
Definitely a commodity to invest in.
The Canadian collaboration software company is also going to thrive as more and more people start working from home.
And though the shares plunged for a while after the company posted its fourth-quarter numbers which marked its slowest growth rate, it is clear that the company is going to beat its guidance for the first quarter of this year. Full-year guidance also looks promising and with paid customers increasing, this is the stock you need to buy right away.
Slack is also looking to collaborate with tech giants such as Cisco and Amazon in the first half of 2021 which means that the sky is the limit for this stock.
After taking a slight beating at the beginning of the calendar year, Microsoft is once again making great strides to improve its standing. The company’s stock did decline in the first three weeks of March but then again, which company hasn’t been tested since the outbreak?
Back in 2008, Microsoft did take a hit when the recession was at its peak but shook it off so who’s to say they cannot do it again?
This is a stock that is worth investing in even though the payoff will be long-term in nature.
On Tuesday, Apple’s stock surged and the iPhone maker is going to be in the thick of things now that its major suppliers such as Universal Display, Broadcom and Cirrus Logic also experiencing a spike this week.
Investors are eager to find any good news they can and with a major financial package from the U.S. government on its way, Apple is likely to benefit a lot from that.
Consumer spending is likely to be back but we can’t really say how long this trend would continue. There is optimism to hold this stock but in a bid to be safe than sorry, keeping Apple’s stock during a market crash is what winners would do.
In today’s market, gold has been slowly experiencing a rise that was not expected at all. As things stand, the price is at $1,526.20 and is likely to go up as demand increases.
The price changed as the beginning of the second week of march at $38.10, showcasing a change of 2.56%. However, the prices may fall as investors look to stockpile cash. But on the other side of the spectrum, the prices might go upwards with Ecuador’s largest gold and copper mines scale back their business.