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March 24, 2020, 3:36 p.m. EDT

As the coronavirus pandemic forces a business paradigm shift, here are the stocks to watch in the new economy

Akamai and Callaway Golf are stocks worth paying attention to, according to Bespoke

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By Mark DeCambre, MarketWatch


Bloomberg News/Landov
Home Depot is a stock worth watching, says Bespoke

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 +0.36% , energy /zigman2/quotes/206420077/composite XLE -0.46% , industrials /zigman2/quotes/202026558/composite XLI -0.62% and financials /zigman2/quotes/209660484/composite XLF -1.14% 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 +0.52%  a possibly good bet.

Stay-at-home outfits like internet-infrastructure company Akamai Technologies Inc . /zigman2/quotes/203072268/composite AKAM +2.81%  as well as home-improvement giant Home Depo t /zigman2/quotes/208081807/composite HD +1.36%  also were spotlighted by the company.

Here’s the complete list, which has been amended since Bespoke first published it back on March 11:

Company Industry
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 -0.07% was up by about 8%, the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.48% was surging 6.7% and the Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP +1.29% 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.

Check out: Opinion: Three stocks that are ‘part of the solution’ to the coronavirus crisis

See : Five ways investors can cash in on coronavirus stock slump, UBS says

/zigman2/quotes/200844504/composite
US : U.S.: NYSE Arca
$ 124.19
+0.45 +0.36%
Volume: 6.51M
May 29, 2020 4:00p
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/zigman2/quotes/206420077/composite
US : U.S.: NYSE Arca
$ 38.76
-0.18 -0.46%
Volume: 35.75M
May 29, 2020 4:00p
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/zigman2/quotes/202026558/composite
US : U.S.: NYSE Arca
$ 67.67
-0.42 -0.62%
Volume: 18.88M
May 29, 2020 4:00p
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/zigman2/quotes/209660484/composite
US : U.S.: NYSE Arca
$ 23.41
-0.27 -1.14%
Volume: 86.97M
May 29, 2020 4:00p
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/zigman2/quotes/204245174/composite
US : U.S.: NYSE
$ 15.32
+0.08 +0.52%
Volume: 1.54M
May 29, 2020 4:00p
P/E Ratio
24.88
Dividend Yield
0.26%
Market Cap
$1.44 billion
Rev. per Employee
$517,848
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/zigman2/quotes/203072268/composite
US : U.S.: Nasdaq
$ 105.80
+2.89 +2.81%
Volume: 6.08M
May 29, 2020 4:00p
P/E Ratio
35.19
Dividend Yield
N/A
Market Cap
$17.17 billion
Rev. per Employee
$361,015
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/zigman2/quotes/208081807/composite
US : U.S.: NYSE
$ 248.48
+3.34 +1.36%
Volume: 5.34M
May 29, 2020 4:00p
P/E Ratio
24.70
Dividend Yield
2.41%
Market Cap
$267.25 billion
Rev. per Employee
$261,993
loading...
/zigman2/quotes/206443229/composite
US : U.S.: NYSE
$ 206.25
+1.29 +0.63%
Volume: 1.71M
May 29, 2020 4:00p
P/E Ratio
30.24
Dividend Yield
2.15%
Market Cap
$25.80 billion
Rev. per Employee
$717,701
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/zigman2/quotes/210293917/composite
US : U.S.: Nasdaq
$ 77.83
+2.51 +3.33%
Volume: 24.38M
May 29, 2020 4:00p
P/E Ratio
20.00
Dividend Yield
3.49%
Market Cap
$97.60 billion
Rev. per Employee
$2.02M
loading...
/zigman2/quotes/203149337/composite
US : U.S.: Nasdaq
$ 612.81
+34.60 +5.98%
Volume: 6.68M
May 29, 2020 4:00p
P/E Ratio
30.80
Dividend Yield
N/A
Market Cap
$68.95 billion
Rev. per Employee
$906,865
loading...
/zigman2/quotes/207420252/composite
US : U.S.: NYSE
$ 174.06
+7.16 +4.29%
Volume: 5.80M
May 29, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$12.96 billion
Rev. per Employee
$208,953
loading...
/zigman2/quotes/212180539/composite
US : U.S.: NYSE
$ 35.05
+2.51 +7.71%
Volume: 33.70M
May 29, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$19.69 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/211319643/composite
US : U.S.: Nasdaq
$ 179.48
+15.93 +9.74%
Volume: 15.31M
May 29, 2020 4:00p
P/E Ratio
2,210
Dividend Yield
N/A
Market Cap
$50.61 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/208035743/composite
US : U.S.: Nasdaq
$ 42.19
-0.42 -0.99%
Volume: 6.72M
May 29, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$11.95 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/205655041/composite
US : U.S.: NYSE
$ 61.08
+0.61 +1.01%
Volume: 2.53M
May 29, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$7.55 billion
Rev. per Employee
$295,385
loading...
/zigman2/quotes/203180645/composite
US : U.S.: NYSE
$ 30.97
-0.63 -1.99%
Volume: 39.43M
May 29, 2020 4:00p
P/E Ratio
19.21
Dividend Yield
N/A
Market Cap
$24.30 billion
Rev. per Employee
$776,112
loading...
/zigman2/quotes/203606847/composite
US : U.S.: Nasdaq
$ 36.10
+0.51 +1.43%
Volume: 499,272
May 29, 2020 4:00p
P/E Ratio
27.99
Dividend Yield
3.10%
Market Cap
$728.01 million
Rev. per Employee
$1.53M
loading...
/zigman2/quotes/212690528/composite
US : U.S.: NYSE
$ 44.44
+2.65 +6.34%
Volume: 3.07M
May 29, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$17.84 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 2,442.37
+41.27 +1.72%
Volume: 3.53M
May 29, 2020 4:00p
P/E Ratio
116.67
Dividend Yield
N/A
Market Cap
$1218.20 billion
Rev. per Employee
$359,671
loading...
/zigman2/quotes/205064656/composite
US : U.S.: Nasdaq
$ 225.09
-0.37 -0.16%
Volume: 23.32M
May 29, 2020 4:00p
P/E Ratio
30.84
Dividend Yield
N/A
Market Cap
$641.30 billion
Rev. per Employee
$1.57M
loading...
/zigman2/quotes/202107764/composite
US : U.S.: NYSE
$ 50.98
+1.46 +2.95%
Volume: 3.34M
May 29, 2020 4:00p
P/E Ratio
30.42
Dividend Yield
2.75%
Market Cap
$15.38 billion
Rev. per Employee
$423,957
loading...
/zigman2/quotes/209170265/composite
US : U.S.: NYSE
$ 48.83
+0.95 +1.98%
Volume: 3.20M
May 29, 2020 4:00p
P/E Ratio
28.68
Dividend Yield
1.90%
Market Cap
$26.26 billion
Rev. per Employee
$476,356
loading...
/zigman2/quotes/201724570/composite
US : U.S.: NYSE
$ 148.75
+1.78 +1.21%
Volume: 8.51M
May 29, 2020 4:00p
P/E Ratio
23.20
Dividend Yield
2.72%
Market Cap
$391.90 billion
Rev. per Employee
$603,509
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/zigman2/quotes/202894679/composite
US : U.S.: NYSE
$ 115.92
-0.14 -0.12%
Volume: 7.99M
May 29, 2020 4:00p
P/E Ratio
65.51
Dividend Yield
2.73%
Market Cap
$286.98 billion
Rev. per Employee
$727,304
loading...
/zigman2/quotes/202353025/composite
US : U.S.: Nasdaq
$ 419.73
+6.29 +1.52%
Volume: 5.27M
May 29, 2020 4:00p
P/E Ratio
84.95
Dividend Yield
N/A
Market Cap
$184.60 billion
Rev. per Employee
$2.22M
loading...
/zigman2/quotes/200717283/composite
US : U.S.: Nasdaq
$ 71.98
+1.76 +2.51%
Volume: 11.44M
May 29, 2020 4:00p
P/E Ratio
35.52
Dividend Yield
0.57%
Market Cap
$55.46 billion
Rev. per Employee
$756,869
loading...
/zigman2/quotes/206954087/composite
US : U.S.: Nasdaq
$ 122.88
+1.53 +1.26%
Volume: 4.57M
May 29, 2020 4:00p
P/E Ratio
12.00
Dividend Yield
N/A
Market Cap
$35.47 billion
Rev. per Employee
$571,613
loading...
/zigman2/quotes/204008930/composite
US : U.S.: Nasdaq
$ 136.17
+2.10 +1.57%
Volume: 4.59M
May 29, 2020 4:00p
P/E Ratio
38.42
Dividend Yield
N/A
Market Cap
$15.52 billion
Rev. per Employee
$574,279
loading...
/zigman2/quotes/203072268/composite
US : U.S.: Nasdaq
$ 105.80
+2.89 +2.81%
Volume: 6.08M
May 29, 2020 4:00p
P/E Ratio
35.19
Dividend Yield
N/A
Market Cap
$17.17 billion
Rev. per Employee
$361,015
loading...
/zigman2/quotes/204245174/composite
US : U.S.: NYSE
$ 15.32
+0.08 +0.52%
Volume: 1.54M
May 29, 2020 4:00p
P/E Ratio
24.88
Dividend Yield
0.26%
Market Cap
$1.44 billion
Rev. per Employee
$517,848
loading...
/zigman2/quotes/208081807/composite
US : U.S.: NYSE
$ 248.48
+3.34 +1.36%
Volume: 5.34M
May 29, 2020 4:00p
P/E Ratio
24.70
Dividend Yield
2.41%
Market Cap
$267.25 billion
Rev. per Employee
$261,993
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
25,383.11
-17.53 -0.07%
Volume: 545.14M
May 29, 2020 5:14p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,044.31
+14.58 +0.48%
Volume: 4.38B
May 29, 2020 5:14p
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/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
9,489.87
+120.88 +1.29%
Volume: 4.24M
May 29, 2020 5:16p
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Mark DeCambre is MarketWatch's markets editor. He is based in New York. Follow him on Twitter @mdecambre.

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