Portfolio of Coronavirus Lockdown Stocks
The following table includes 10 non-medical stocks that have strong upsides during the Coronavirus lockdown.
Next bucket? The companies that are pretty much made for this moment, and I am talking about companies that are just thriving because of what they do in a pandemic or have a chance to just crush everyone else in their business. Amazon (AMZN) , Walmart (WMT) , Costco (COST) and, as we saw today with its incredible digital numbers, Target (TGT) , are actually about to carve up the entire retail market. There are 43 million people involved in retail. We are in a service economy. But we are in an economy where companies with scale can get products much cheaper than other companies. They can sell them more cheaply. And those who had the foresight to add food into their mix are now in charge. Brian Cornell Thursday morning told CNBC, "In April alone our digital growth is up over 275%. We've just seen cyber Monday occur almost every day but the volume is twice the size of a normal cyber Monday" How many retailers can say that?
Who else is made for this moment? Kimberly-Clark (KMB) and Procter & Gamble (PG) because when you stay at home you use their products much more. Some of them are being hoarded for heaven's sake. Hormel (HRL) , Smucker (SJM) , General Mills (GIS) , Mondelez (MDLZ) , these are crushing it. So is McCormick (MKC) . Oh and if you are going stir crazy? Then you go to Chipotle CMG, with its digital pick-ups, deliveries and Chipotlanes.
Then there are the companies that do well in work from home: Zoom (ZM) . Ring Central (RNG) , Zscaler (ZS) , Okta (OKTA) , CrowdStrike (CRWD) , all come to mind. Finally, there are the companies that are involved with the data centers, everything from Microsoft's Azure, to Amazon Web Services, to Alphabet (GOOGL) and to Nvidia (NVDA) and Advanced Micro Devices (AMD) . And then there are the companies that benefit from the play at home cohort: the video-game makers and the companies that deliver, including Domino's (DPZ) , which is on Mad Money Thursday night.
Then there's the unfortunate third bucket, made up of all of the companies that need bailouts, that are closing their doors, that are nearing bankruptcies because they need credit and can't get it, or have given credit and now are worried to be paid back. The banks are in this leaky bucket, which is a reason why fintech is back in action as the mutual funds that mimic the S&P are selling the real banks and going for the PayPals (PYPL) of the world.
|Chipotle Mexican Grill,||CMG|
|Procter & Gamble||PG|
|Zoom Video Communications||ZM|
|Sparkline weekly price charts based on Alpha Vantage data.|
Portfolio ValuesTo inspect the performance of the Coronavirus Virus Lockdown Stocks portfolio, see the chart below. Portfolio values are computed using monthly closes for stocks from Alpha Vantage.The 8 stocks included in the portfolio computations are: AMZN, CMG, DPZ, EBAY, ETSY, OKTA, PG and W. The current value of the portfolio assumes that $1,250.00 was invested in each stock at its closing monthly price for the first date shown on the portfolio value chart below. All prices are adjusted for splits and dividends. PTON and ZM were excluded from the portfolio computations because of insufficient price data.
The current value of the $10,000 investment is $26,847. The percent return is 168.47%. The annualized return is 21.84%.
Portfolio Value Chart for Last 100 Daily Closes