5 STOCKS IMMUNE TO THE CORONAVIRUS
Disney, Starbucks, Boeing...these are just 3 of the stocks whose shares have fallen between 50-80% since the emergence of Covid-19, the virus that has resulted in increased uncertainty and record sell-offs from stock markets around the world.
Although the outlook for most companies has changed due to the effects that the coronavirus is having on the world, there are some businesses that will profit from the current economic crisis. Most notably, supermarket stocks and a select number of vaccine and pharmaceutical companies have performed very well whilst the majority of stocks have plummeted. In my opinion, this is the perfect time for long-term investors to capitalise on a number of stocks that have been unfairly punished as part of the broader market sell-off.
Here are 5 stocks that I think will not only be unaffected by the influence of coronavirus but may actually benefit and outperform the broader stock market.
Netflix isn't just immune to the current pandemic, it's benefiting from it. Whilst we're all spending time isolating indoors during lockdown and the majority of outdoor entertainment around the world is closed, we have become more and more dependant on online streaming giants including Netflix for enjoyment. As it doesn't look like things will go back to normal any time soon, it is likely that subscribers and platform usage will continue to rise and that Netflix's stock price is going to be pushed even higher.
This is one of my favourite renewable energy stocks that stands to benefit massively as society shifts away from oil and fossil fuels in exchange for solar energy (About time!). Evidence against the use of fossil fuels is racking up whilst the cost of renewable energy is coming down which should only accelerate the trend. Solaredge appears to be benefiting more than almost any of their industry peers having delivered fantastic revenue and earnings growth over the past couple of years. Unlike the smaller renewable energy companies with higher debt and less cash on hand, Solaredge has a healthier balance sheet which should better equip them during tough market conditions.
The stock is currently down around 30% from it's all time high as part of the broader market sell-off however, once the market steadies and rebounds then I predict that Solaredge will be one of the fastest growing stocks in the energy sector.
3. EDITAS MEDICINE
Although this leading gene editing company will likely be unaffected by the ongoing pandemic, it has been hit hard by the recent market hammering. Despite it carrying more risk due to the speculative nature of the gene-editing industry, this virus has highlighted the vulnerability of our species and made clear how important investment in gene therapy and editing is!
Etidas is currently in an incredible position as they own the most patents in the industry and the rights to all new gene therapy tools developed from some of the world's leading universities in the USA. In addition, although their stock is currently worth under $1 billion, by 2025 it is estimated that the gene editing industry will be worth up to $10 billion meaning that it has huge potential for growth.
Editas makes it into my list of 10 stocks that I think will double in 2020, click HERE to see the other 9!
Tesla is best known for their electric vehicles, CEO Elon Musk and a rollercoaster stock price as investors debate whether their cars will dominate the electric vehicle market or simply get caught in the crowd with Mercedes, Porsche, GM etc.
If Tesla relied solely on selling vehicles then I wouldn't be recommending the stock. However, the company has many other lucrative tricks up its sleeve including advanced battery technology, battery storage, self-driving software and plans to disrupt the insurance and taxi industries. With the stock recently falling from almost $1000 per share to as low as $350, investing in Tesla represents a huge opportunity!
5. NEXT ERA
Another renewable energy company that will benefit from us resourcing our energy responsibly, this stock has taken a rare beating over the past couple of months as Saudi Arabia and Russia responded to the oil crash by desperately giving away as much oil as they could! Although the cheaper price of oil isn't a good thing for renewable energy companies, I believe that it's inevitable that the majority of the world will move to clean energy consumption over the new few decades. If this is the case, Next Era will grow in value alongside this trend. Long term societal trends are my favourite way to find top stocks, HERE are my other favourite signs!
In addition, Next Era funds almost all of its large scale energy projects with loans and interest rates. As the coronavirus has led these rates to drop to record lows, this company will have less interest to pay going forward and their projects will become even more profitable!
Next Era is well positioned in one of the best long term industries, ch
So there you are! 5 stocks that I believe have immunity to the current global pandemic. Let me know your thoughts in the comments below or feel free to throw out some other stock ideas that you think might be excellent investment opportunities right now. HERE are 10 stocks that I think will double in 2020!
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