Even seasoned investors are likely feeling nervous right now, following the massive swings the stock market has shown in the past few weeks with the Covid-19 outbreak. It’s tough to weather these storms, even if you have a long-term plan and want to stick with it.
However, there are some industries and stocks that may do well during this time and could be worth a look.
The trucking industry is one traditionally filled with risk. There is a lot of legal liability from cargo accidents to crashes like the one actor Tracy Morgan was in several years ago.
However, right now could be a good time to look at the industry and its potential stability in a time with a lot of unknowns.
Truckers in the United States are responsible for keeping the supply chain moving, which is so important when store shelves are going empty.
With that being said, there is a downside to consider with trucking. Many states are putting a limit on interstate travel, and that could negatively impact freight flows. You need to weigh both sides—the increasing consumer demand paired with possible restrictions to figure out if trucking is an investment you’re interested in right now.
Many employers are having their workers stay home, and work from there right now as the country is focused on flattening the curve of infections.
That means stocks, particularly tech stocks, related to working from home and telecommuting could be a buy for some investors.
One stock that’s considered a work-from-home option is Zscaler. Zscaler is a software-as-a-service application that helps the government and businesses find ways to provide secure access to IT infrastructures.
Slack, which is a collaborative tool, is also picking up steam.
Another one is the video conferencing tool Zoom.
The thing about a lot of these tech stocks is that they aren’t just interesting during a time of crisis. Telecommuting was growing by leaps and bounds before the Covid-19 outbreak and represents the future of work in many ways.
Other Stay-At-Home Stocks
We’re all spending a lot of time at home, so along with those things that help facilitate working at home, we also want to be entertained and stay fit.
The Peloton company, which not only sells high-end exercise bikes and treadmills but also has a subscription-based app, has jumped quite a bit in the past few weeks. Peloton instructors are still cranking out live and on-demand content, they’re just doing it in empty studios as opposed to having the public taking the class in-studio with the instructor.
You may not be able to afford Amazon, but if you can, many people are saying this is the time the company was built for. They’re ramping up hiring by tens of thousands as many other businesses are shuttering and laying employees off.
Netflix is what a lot of us are relying on to get us through the days of social distancing.
Other Stocks That Are Doing Well
Certain other stocks are doing well right now, understandably although when a stock is doing well it’s not necessarily the time to buy if you’re someone who shops for value stocks.
Gilead Sciences is a company that has a drug originally developed for Ebola that some feel could help with combating Covid-19.
A few weeks ago, you might not have thought much of Clorox, but you could be rethinking that. Their stock is up a fair amount.
Companies that provide virtual healthcare seem to be winners in some cases too.
Alibaba is an e-commerce company, and Johnson & Johnson specializes in not only consumer items but also pharmaceutical goods, so they stand to do well, potentially.
What about the worst stocks right now?
Hospitality and travel are being decimated, but again for shoppers of value stocks, this might not be a bad thing, if you can take some short-term volatility. Real estate stocks are also having a tough time right now.
With all this being said, unless you’re an investor who likes to focus on short-term events, you might not want to buy or sell anything right now. For long-term investors rather than even thinking about what’s up and what’s down, your goal might be to ignore the financial news and stay the course.
That’s up to you, but one thing is for sure—you might be eyeing some stocks that just a few weeks ago you hadn’t even considered if you are trying to invest during this time.