By Mark DeCambre, MarketWatch
Wall Street is seeing some green shoots on Tuesday, as the market wrestles with the likely new reality created by the coronavirus pandemic, which has brought many businesses across the globe to a screeching halt.
With that in mind, Bespoke Investment Group has assembled a list of equity investments that may be worth tracking as the era of COVID-19, the infectious disease that has claimed more than 17,000 lives and infected nearly 400,000 people globally , plays out in the coming weeks, months and possible years.
A number of sectors, including consumer discretionary /zigman2/quotes/200844504/composite XLY -0.20% , energy /zigman2/quotes/206420077/composite XLE -0.34% , industrials /zigman2/quotes/202026558/composite XLI +0.53% and financials /zigman2/quotes/209660484/composite XLF +1.16% have been decimated, falling by at least 40%.
But the Bespoke crew says discerning investors may be able to identify opportunities that might emerge and, perhaps, even thrive in the aftermath of an economic recession that is expected to result from lockdown efforts put in place to mitigate the spread of the deadly pathogen.
“Yes, the virus will be here for many more months, but with testing, testing, testing and very successful treatments that are already saving lives,” wrote the Bespoke research team. The crew added “we can envision getting on with our daily lives again once we’re all confident that we know exactly what it is and how to deal with and defeat it.”
“All of this said, we’re not going back to the world we lived in prior to mid-February for a long time,” Bespoke writes.
Against the changing backdrop, the research firms says that open-air golf may prosper because the sport may be best suited to return to some semblance of normalcy after the outbreak subsides, making golf-equipment maker Callaway Golf Co . /zigman2/quotes/204245174/composite ELY +0.86% a possibly good bet.
Stay-at-home outfits like internet-infrastructure company Akamai Technologies Inc . /zigman2/quotes/203072268/composite AKAM -1.53% as well as home-improvement giant Home Depo t /zigman2/quotes/208081807/composite HD +0.07% also were spotlighted by the company.
Here’s the complete list, which has been amended since Bespoke first published it back on March 11:
|Clorox Co . /zigman2/quotes/206443229/composite CLX||Disinfecting products|
|Gilead Sciences Inc . /zigman2/quotes/210293917/composite GILD||COVID-19 treatments|
|Regeneron Pharmaceuticals Inc . /zigman2/quotes/203149337/composite REGN||COVID-19 treatments|
|Teladoc Health In c. /zigman2/quotes/207420252/composite TDOC||Telehealth|
|Slack Technologies Inc . /zigman2/quotes/212180539/composite WORK||Work-from-home technology|
|Zoom Video Communications Inc . /zigman2/quotes/211319643/composite ZM||Videoconferencing|
|Peloton Interactive Inc . /zigman2/quotes/208035743/composite PTON||Exercise|
|Chegg Inc . /zigman2/quotes/205655041/composite CHGG||Online education|
|Twitter Inc . /zigman2/quotes/203180645/composite TWTR||Social media|
|PetMed Express Inc. /zigman2/quotes/203606847/composite PETS||Pet health|
|Chewy Inc . /zigman2/quotes/212690528/composite CHWY||Online pet products|
|Amazon.com Inc . /zigman2/quotes/210331248/composite AMZN||Online shopping and cloud storage|
|Facebook Inc . /zigman2/quotes/205064656/composite FB||Social media/News|
|Campbell Soup Co . /zigman2/quotes/202107764/composite CPB||Food staple|
|Hormel Foods Corp . /zigman2/quotes/209170265/composite HRL||Food staple|
|Johnson & Johnson /zigman2/quotes/201724570/composite JNJ||Health care|
|Procter & Gamble Co. /zigman2/quotes/202894679/composite PG||Health staples|
|Netflix Inc. /zigman2/quotes/202353025/composite NFLX||Video streaming|
|Activision Blizzard Inc . /zigman2/quotes/200717283/composite ATVI||Videogames|
|Electronic Arts Inc. /zigman2/quotes/206954087/composite EA||Videogames|
|Take-Two Interactive Software Inc . /zigman2/quotes/204008930/composite TTWO||Videogames|
|Akamai Technologies Inc . /zigman2/quotes/203072268/composite AKAM||Internet infrastructure*|
|Callaway Golf Co . /zigman2/quotes/204245174/composite ELY||Golf and sports equipment, apparel*|
|Home Depot /zigman2/quotes/208081807/composite HD||Home improvement*|
|Source: Bespoke Investment Group new entrants*|
Here’s Bespoke’s version of the list:
Meanwhile, the market is still awaiting clarity on a fiscal stimulus package from Congress, intended to help fund efforts to help those afflicted by the virus as well as to provide assistance for workers, industries and businesses that are the hardest hit by shutdowns.
As of Tuesday afternoon, the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.38% was up by about 8%, the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.80% was surging 6.7% and the Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP -1.69% was gaining more than 5%. The Dow is off 32% from its Feb. 12 all-time closing high, while the S&P 500 is down 30% from its record peak, and the Nasdaq is off 26.4% from their Feb. 19 record peaks, with all three meeting the commonly accepted criteria for a bear market.