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.

Wal-Mart

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.

Kroger

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.

Citrix Systems

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.

Ocado

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.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

React to global volatility

Market volatility continues as coronavirus concerns amplify. Trade with IG and take advantage of:

  • Tight spreads – from just 1 point on major indices, and 2.8 on US crude
  • Guaranteed stops – they’re free to use, and only incur a fee when triggered
  • Round-the-clock assistance – our highly skilled team are available when you need support

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.