Strong stock market performers amid coronavirus crisis
While most stocks have fallen heavily, there have been some winners, due to the businesses in which they operate.
It seems remarkable to say it, but there have still been some stock market winners during the recent market turmoil. A number of US and UK stocks are at 52-week highs, bolstered by their fortunate business positions at this time of global crisis. We highlight some of these below.
Being a supermarket has its benefits when shoppers are stocking up in preparation for a long period of isolation, or when online deliveries are hard to obtain. Wal-Mart has been upgraded by brokers this week because of expectations surrounding its revenue. While other retail firms expect falls in revenue, perhaps dramatically so, Wal-Mart has seen customers flock to its stores. Investors expect more food to be consumed at home, while the group’s commanding market share, around 25% of the US market, provides it with a commanding lead over rivals.
The stock price has not been without its own volatility, dropping around 15% from the middle of February, but it has since rebounded to new 52-week highs, reviving the longer-term uptrend.
Another US supermarket doing well is Kroger, and unlike Wal-Mart its shares have not seen the kind of downward moves suffered by its larger competitor. The steady uptrend from July 2019 remains in place.
The boost in working from home has proved to be a boon for Citrix Systems, which has rallied sharply over from its March low. The stock was heavily sold in January and February, but has come into its own with the lockdowns across the US and Europe, having seen its stock price gain 40% since the beginning of the month. As working from home becomes more prevalent, we can expect greater demand for Citrix’s software.
One big UK winner from the crisis has been Ocado, the online supermarket. It reported a healthy increase in revenue and basket size for the most recent quarter, helping the share price to break above the April 2019 high. Losses in January and February continued towards £10, but once again this area has provided support, as it has done since June.
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