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Which Stocks Are Going to Survive the COVID 19 Pandemic?

As the world is learning to survive the pandemic, some questions certainly loom before us. What does the future hold for us after the pandemic? How is the world going to change, and how fast can we adapt to those changes? While our entire economy has taken a hit with the pandemic, a few sectors are hit harder. 

While the stock market was at its highest back in February, the picture is opposite after just a few months. Investors are sweating over the decision whether to buy new stocks or to sell the existing. Despite the recession, few companies are going to have a remarkable recovery after the pandemic. Let’s look at the companies that will make it to the other side despite the crashing economy.

Which Sectors Are Going to Survive the Pandemic?

Despite millions of layoffs, the drastic drop in investment, and some industries’ collapse, the stock market is surprisingly staying afloat. However, investors are looking for sectors that can weather future uncertainties and guarantee good returns. Blog post on Gilder’s prediction by NoBSIMReviews can shed some light on the future trend of the stock market and the validity of those predictions. Here we have listed the sectors that will see significant growth in the post-pandemic world.

Digital and Technology Sector

The pandemic has brought the use of technology a whole new dimension. We are undoubtedly more dependent than ever on online delivery services for getting almost everything. For work, education, or entertainment, we depend on technology like never before. Here are some of the companies that have seen a massive surge in the market and will continue to do so.

Amazon

After the pandemic, Amazon had its share rise more than 25%, the highest in Amazon’s recent history. This shipping giant is also expanding its other tech services outside the online delivery service, such as Amazon’s cloud service AWS (Amazon Web Services). The longer the pandemic is going on, the more people rely on the e-commerce sectors like Amazon. Considering the nature of our online lifestyle is here to stay, Amazon and other e-commerce businesses will expand more in the future.

Microsoft

With a 15% increase in share, Microsoft still has enough potential to grow. Apart from PC software, it has products like LinkedIn, Microsoft teams in its ownership. The work from home and online schooling trend indeed proved the worth of Microsoft teams. Cloud service Azure is also becoming the most revenue-generating product for Microsoft.

Netflix

Online streaming service Netflix has seen its highest growth in share with a 33% increase this year. Due to the pandemic, the number of movies released online is growing, so is the revenue of online streaming services. Netflix has gained over 182 million subscribers and is also expanding its business outside the USA. Netflix is undoubtedly going to be the most popular entertainment option for many years to come.

Health Care Sector

People need health care regardless of their income situation. The health crisis during Coronavirus has only proved the importance of the health care sector. Starting from cleaning products to immunity-boosting supplements, all have taken a front-row seat in people’s demand. The stock price rise of biotech companies indicates that the investment in research and development of a suitable vaccine has also gained priority.

Food Industries

Like healthcare, food is one thing that people cannot cut out of their lives. The food manufacturing industry is one of the few industries that is staying afloat amidst the pandemic. As people are stocking up, canned foods and processed food industries rank higher than the fresh produce. Here are some food industries that are growing despite the pandemic.

General Mills, Inc.

General mills Inc. has seen a 16% rise in its share since the pandemic hit. With restaurants closed or running with limited service, people are becoming more dependent on grocery stores. Companies like general mills that markets branded consumer foods are profiting off this trend. As the pandemic continues, these companies are more likely to expand.

McDonald’s

Although chain restaurants share prices dropped significantly at the beginning of the pandemic, they are recovering slowly with new business tactics. For example, McDonald’s share price was 168 US dollars back in March, and it is 225 US dollars in October. With the increased demand for the drive-through services, McDonald’s share has risen almost 14%.

Logistics Industry

Essential supplies need to be transported regardless of a crisis or pandemic. Logistics and freight service is critical for our lives to go on. Pandemic has not slowed down the demand for logistics and transport services for staple supplies. Considering these freight companies like Westinghouse Air Brake Technology, Old Dominion Freight is sure to make a steady profit.

Automobile Industry

After the SARS virus, the automobile industry has seen incredible growth. People depending less on public transport can be the reason for the increased demand for personal automobiles.

A similar scenario can be predicted for the coronavirus pandemic. Although people are more likely to be dependent on eco-friendly modes of transport like cycling, the automobile industry’s overall market share is more likely to rise.

Conclusion

The pandemic has not affected all the industries equally. Some are taking advantage of the situation to grow their business, while some are down to their lowest in history. Some companies have a momentary boost in their stock prices that won’t last long.

Some industries have made right use of the opportunities and ensured their futures. The Tech industry is most likely to thrive after the pandemic. They have innovations and growing consumer demand to back them up. Although the market trend is still quite volatile, it is fair to assume that some businesses might have to change their strategy to survive in a post-pandemic world.

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