Topline: Despite the coronavirus weighing heavily on the stock market—causing the S&P 500 to drop 15% over the last month of volatile trading—a number of companies are seeing increased demand and stand to benefit from the current environment as more people stay at home during the outbreak.
Here are 20 stocks that offer compelling opportunities for investors right now, according to analysts from Stifel and Credit Suisse.
- In the healthcare space, Credit Suisse recommends medical device manufacturers like Medtronic (MDT) and Boston Scientific (BSX), which stand to benefit amid higher demand for resources to combat the coronavirus pandemic—the stocks trade at $90 and $30 per share, respectively.
- Another top pick from Credit Suisse is Merck & Co. (MRK), one of the largest pharmaceutical companies in the world, which the firm identifies as an ideal defensive dividend stock for today’s “adverse business climate.”
- With the coronavirus causing more people to stay indoors and self-isolate, companies like AdaptHealth Corp. (AHCO), one of the largest providers of home medical equipment in the U.S., “can ultimately benefit” from the outbreak thanks to higher demand, according to Stifel.
- Stifel similarly likes virtual healthcare company Teladoc (TDOC), which facilitates digital doctors visits for remote patients; while the market has fallen significantly over the last month, Teladoc’s stock has been a top performer, up 21.5% during that period.
- Technology companies—such as Adobe (ADBE), IBM (IBM) and Oracle (ORCL)—that either focus on “edutainment” or capitalize on the growing digital trend as people continue to work from home, also stand to benefit in the long-term, according to Credit Suisse.
- The firm similarly highlights tech giant Microsoft (MSFT), with its stock proving to be resilient and only falling 5.4% over the last month; It’s also a top pick from Stifel, given that they expect its cloud computing service, Azure, to become Microsoft’s largest revenue stream in the coming years.
- Credit Suisse also likes two other members of Big Tech: Facebook (F) and Google parent Alphabet (GOOG), since investors now have a rare opportunity to buy these high-powered stocks “at a significantly cheaper level” after the recent market sell-offs due to coronavirus.
- As the outbreak continues to take a toll on the economy and people work from home, Stifel recommends CrowdStrike Holdings (CRWD) because of its positioning as the “only true cloud-delivered workload security solution” within the “broadly resilient” cybersecurity sector; The stock has gained 2.2% in the last month.
- In a chaotic global environment, cloud software company Everbridge (EVBG), which provides the “next generation Amber alert,” would be in high-demand, according to Stifel. Everbridge works with both corporations and governments to provide mass emergency notifications; The stock has soared 36.2% so far in 2020.
Consumer & Retail
- As businesses continue to shut down, people will now be relying on online deliveries from shipping giant Amazon (AMZN) more than ever; Stiifel recommends the stock, which trades for $1,900 per share.
- Credit Suisse highlights that popular stocks like athletic apparel powerhouse Nike (NKE), which has fallen almost 19% so far this year, now trade at a more attractive valuation. In that same theme, they also recommend Restaurant Brands International (QSR), which owns chains like Burger King, Tim Hortons and Popeyes.
- With people across the country rushing to supermarkets to stock up on canned and shelf-stable foods, wholesaling giant Costco (COST) is a good investment, according to Stifel. The stock is down just 3% over the last month, outperforming the benchmark index.
- With its sales rising due to coronavirus-related buying, the Colgate-Palmolive Company (CL), well-known for its toothpaste among other products, will likely remain strong even in a downturn, Stifel predicts. The “recession proof” stock currently trades at $65 per share.
- Other top picks from both firms include game developer Zynga (ZNGA), which Stifel says is a “beneficiary of ‘social distancing,’ and consumer goods company Johnson & Johnson (JNJ), which stands to benefit from higher demand during the outbreak, according to Credit Suisse.