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.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
React to global volatility
Market volatility continues as coronavirus dominates the global agenda. Trade with us to 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 you’ll only pay a small fee if they’re triggered
- Round-the-clock assistance – our highly-skilled team are on hand to support you
Live prices on most popular markets
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 spread betting and CFDs.
Stay on top of upcoming market-moving events with our customisable economic calendar.