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3 Surprising COVID Stocks That May Continue to Outperform

Posted on Tuesday, July 14th, 2020 by Andrew Packer

3 Surprising COVID Stocks That May Continue to Outperform

It’s been a banner year for some stocks, particularly those that have been able to benefit from a global pandemic. 

For instance, companies have quickly pivoted to remote working policies during the crisis, benefitting firms like Zoom Technologies (ZM) and Microsoft (MSFT). Pharmaceutical plays like Gilead Sciences (GILD) have gotten a boost in the arm over potential Covid-19 treatments.

But there have been a number of companies that have also benefited, but haven’t had as much market attention… at least for now. These three surprising names look likely to benefit from this year’s COVID outbreak. 

Covid Play #1: LivePerson (LPSN)

With a rise in e-commerce trends, shoppers are spending more time and money than ever online. But with the loss of shopping in a traditional retail outlet also comes the loss of being able to ask a specific question about a specific product. After all, someone will always have a question that hasn’t been brought up in a review on Amazon.

That’s where LivePerson comes in. It provides conversational commerce solutions such as mobile and online messaging. Artificial intelligence programs can answer common questions, but can also pass off to a human respondent when needed.

Shares of the company are just now breaking to new one-year highs after clawing out of the steep drop earlier in the year. But we’re still in the early stages for a move higher through the end of the year.

Covid Play #2: Avid Bioservices (CDMO)

Avid Bioservices is a development and manufacturing organization for the biotech space. Its products include antibodies and recombinant proteins as well as packaging and other services for the industry. In short, in a world of gold miners, it sells picks and shovels. That kind of industry service tends to be quietly profitable.

Generally, suppliers tend to be steadier players. The company has seen shares essentially trade flat in the past year as biotechs have been somewhat out of favor with the market. With the rise of a global pandemic, however, biotechs are getting a lot more investor interest. Any company doing supply work for that industry is likely to see a surge in revenue and profits going forward.

With shares trading around $7 right now, it’s a compelling growth story at a solid valuation and a reasonable price.

Covid Play #3: The Walt Disney Company (DIS)

Not every company with room to run this year is a small-cap. Media giant Disney took a huge hit earlier this year when it shuttered all its theme parks globally, a segment that makes up over one-third of its revenues. 

Now, however, parks are opening back up with updated safety measures. And the company continues to beat expectations on its streaming platform, Disney+, which just unveiled the Broadway hit musical Hamilton.

Shares dropped from near $150 to $90 during the market selloff, and are still under $120 today. With consumer spending and sentiment on the rise as well, shares of Disney look set for some of that old Disney magic in the second half of the year.

Companies Mentioned in This Article

CompanyBeat the Market™ RankCurrent PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Zoom Video Communications (ZM)0.9$236.72+2.5%N/A1,392.47Hold$209.05
Microsoft (MSFT)2.2$209.19+2.9%0.98%36.38Buy$213.82
Gilead Sciences (GILD)2.3$68.84+1.1%3.95%-286.82Hold$79.68
Walt Disney (DIS)1.9$131.79+1.0%1.34%-212.56Buy$128.54
Avid Bioservices (CDMO)1.4$7.70flatN/A-27.50Buy$9.38
LivePerson (LPSN)1.1$57.57flatN/A-34.07Buy$55.77
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6 Stocks to Help You Profit Off the Coronavirus PPE Boom

Every major global event brings with it changes to our national lexicon. Before the Covid-19 pandemic, few Americans knew what the initials PPE stood for. Today, virtually anyone knows that PPE stands for personal protective equipment.

At the onset of the mitigation policies, the goal of flattening the curve was being done to prevent our health care system from becoming overwhelmed. Part of that concern stemmed from a shortage of personal protective equipment. These are the masks, gloves, goggles and gowns that help protect medical workers against viral or bacterial infections.

As the novel coronavirus became labeled a global pandemic, the global mantra became to “flatten the curve” in an effort to prevent our healthcare system from being overwhelmed.

The United States is being referred to as being on a war time footing. Manufacturers that were already producing PPE have significantly ramped up capacity. And many companies are converting their excess manufacturing capacity to produce personal protective equipment.

In fairness, this may only be a reason for some of these companies to “keep the lights on” right now. But many of these companies have a good story to tell. And it’s that story that can make them solid investments in the future.

View the "6 Stocks to Help You Profit Off the Coronavirus PPE Boom".

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