A large portion of the conventional go-to cautious organizations and areas saw their stock costs fall like a space container reappearing the world’s environment. Those exemplary cautious stocks will be guarded again during market selloffs, however it’s difficult to envision a constrained remain at home request where millions lose their positions for the time being and are unexpectedly not accepting what was ordinary before February.
It is essential to sift through certain victors from others. For example, we disposed of all the medication and biotech organizations, just as organizations coming out with diagnostics for the Covid. A large number of those improvements remain very liquid, and some of them surely won’t be effective in the amazing undertaking of an immunization or an important treatment.
We have likewise included what was working before the Covid and how they have done after. Not exactly a fifth of the S&P 500 is really indicating positive stock execution so far in 2020. Huge numbers of these organizations are up, yet they are up large!
• YTD Gain: 43%
Newmont Corp. (NYSE: NEM) is the king of gold miners, now that Newmont and Goldcorp are one company. It has perhaps the strongest gold reserves, low all-in sustaining costs for mining gold, and every $100 move up in gold gives that much more in earnings. The company also has been weathering the COVID-19 exposure rather well, and it was able to boost its dividend based on the recent gains. Barrick Gold Corp. (NYSE: GOLD) gets an honorable mention, given many of the same characteristics. Of course, there is also just the good old SPDR Gold Shares (NYSEARCA: GLD) that is the largest gold trust for investors in the world. with close to $60 billion in gold bars.
YTD Gain: 47%
Virtu Financial Inc. (NASDAQ: VIRT) has thrived throughout the market volatility in 2020. In fact, the company is a market maker and high-frequency trading firm that trades U.S. markets and international markets in stocks, options and other instruments. Its first-quarter 2020 revenues were up over 170%, and net trading income was up more than 200% to $802 million. The trading firm now has proven it can operate profitably in good times and bad, despite the volatility. Unlike the public, its trading machines don’t feel panic when the market is falling. It comes with a 4% dividend yield to boot.
• YTD Gain: 62%
Peloton Interactive Inc. (NASDAQ: PTON) has seen its shares and revenues surge after beating revenue expectations due to more people choosing to exercise at home. Many investors believe that accelerated purchases will represent an even greater shift to home-based fitness over large gyms where viruses and other germs await. It remains debatable how long the behavior change in exercise will last, but if the trend accelerates then Peloton wins with its spin-bike and with its treadmill and newer apps for TVs, tablets and computers.
• YTD Gain: 60%
DocuSign Inc. (NASDAQ: DOCU) hit its post-IPO all-time high as well, and the remote signature application provider has managed to do this despite real estate slowing down sharply. The reality is that anyone using DocuSign is amazed at how fast and efficient the service is. As with many software and app-based players, valuations are not for the timid, as revenue growth is expected to remain above 25% despite the recession.
• YTD Gain: 78%
Etsy Inc. (NASDAQ: ETSY) was a surprise winner of the COVID-19 recession. Making and selling arts and crafts products does not sound all that recession-proof, but many out of work people are looking for bargains, they are looking to sell crafts and handmade goods, and they saw lots of new business from interesting handmade face masks that can make people still look artsy and cute despite wearing a facial mask as do-it-yourself PPE. Etsy’s shift to free shipping seems to have now worked through the kinks that were causing some ripples at the end of 2019 and the start of 2020.
• YTD Gain: 80%
Datadog Inc. (NASDAQ: DDOG) hit a post-IPO high in May, as revenues were up 87% from a year earlier. Large customers (over $100K in spending) rose to 960 from 508 in early 2019, and the company launched its security monitoring service to break down walls separating security, development and operations. Valuations are not for the faint of heart here, but that’s the price for projecting better than 50% revenue growth while inside of the eye of the recession.
• YTD Gain: 85%
Shopify Inc. (NYSE: SHOP) has taken the e-commerce and back office for website management to the next level. Shopify was taking off in a major way before the recession, but COVID-19 just forced companies that were still putting off their online focus to address it immediately. The Canadian company helps small and midsize businesses selling products and services look and act almost the same as large companies they would be competing against. It helps with all aspects of the behind-the-scenes on websites and allows for commerce in multiple currencies across multiple geographies. Shopify also has become stronger in fulfillment centers, and it just raised an opportunistic $1.5 billion after a big stock gain to bolster its finances while it builds up for even more growth ahead.
• YTD Gain: 100%
Everbridge Inc. (NASDAQ: EVBG) provides organizations and enterprises (including governments) with a platform for mass notifications to individuals or groups ahead of, during and after disasters and other emergencies. The company was already relevant before COVID-19 and now it’s even more relevant. The pandemic has helped its business, but incidents such as severe weather, workplace violence, terrorism, power outages, environmental alerts, mass hacks or IT breaches, infrastructure or equipment failures, missing persons and so on are not going to disappear.
• YTD Gain: 100%
Wayfair Inc. (NYSE: W) found itself in a unique position going into this whole coronavirus crisis. It was riding high on the e-commerce wave that has been building for years, and the pandemic only seems to have accelerated this trend. As it stands, Wayfair provides over 14 million products for consumers for the home sector under various brands, including furniture, housewares, decorative accents and more. With more people stuck at home, it seems to reason that they would like their house looking better for the more time they are now spending in it. The most recent quarterly report only seems to prove this, with revenues up about 20% year over year, and active customers increasing 29% to 21.1 million in the same time.
• YTD Gain: 130%
Zoom Video Communications Inc. (NASDAQ: ZM) should have a slogan for its video conferencing solutions that says, “So easy that your little kids can use it!” On top of having major business growth, Zoom is powering countless numbers of schools during the stay at home period, and it is acting like a virtual classroom. Businesses were already being attracted to Zoom, but it is being used by everyone now. Even after the coronavirus panic has passed, this is a simple way for people to stay in touch by video. It has endless upgrade features that it can work on for upsells ahead, including better security within its services.