4 Top Coronavirus Recovery Stocks to Buy 

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Posted: May 20, 2020 3:05 AM

Four top coronavirus recovery stocks to buy include a diversified array of companies that share the common theme of offering products or services that are finding heightened demand in the wake of the COVID-19 public health emergency.

One company already has doubled its share price in less than two months but may have further room to rise as it seeks to help detect COVID-19. Others among the four top coronavirus recovery stocks to buy respectively include offering gold mining, online pet products and online retail access for small businesses that mostly have been shut down across the country. 

Quidel Corp. NASDAQ: QDEL), a San Diego-based provider of rapid diagnostic testing solutions, cellular-based virology assays and molecular diagnostic systems, soared 109.58% between when it was recommended in the Home Run Trader advisory service on March 23 and the close of trading on May 19. The share price of Quidel has jumped amid reports that the company could become at least part of the solution to improve testing for the novel coronavirus that had led to 4,985,825 cases and 324,889 deaths globally, along with 1,570,583 cases and 95,553 deaths in the United States, as of May 19.

Diagnostic Testing Company Ranks Among 4 Top Coronavirus Recovery Stocks

The stock also gained a boost on May 18 when Quidel announced that it received Emergency Use Authorization (EUA) from the Food and Drug Administration (FDA) for the its direct sampling process to detect COVID-19 and serve a potential market of millions of people. The technique is designed to speed up testing.

Mark Skousen, PhD, Presidential Fellow at Chapman University, recipient of the inaugural Triple Crown in Economics in 2018 and honoree as one of the 20 most influential living economists, recommended the stock in Home Run Trader when it traded at $88.73. Even though it had zoomed 109.58% in less than two months when it closed on May 19, he opted to sell the position after it more than doubled in price. He also had recommended call options for investors willing to take increased risk for a chance at even bigger returns than the stock offers. 

“We just circled the bases with a grand slam when we made a 107% profit in Quidel, and three gargantuan gains in our call options of 308%, 327% and 928%,” Skousen stated. 

Chart courtesy of www.StockCharts.com

Call Option Choice Fuels Return for One of 4 Top Coronavirus Recovery Stocks

Skousen, who also writes a monthly investment newsletter called Forecasts & Strategies, recommended the purchase of the call options when he advised to buy the stock, sold half when the gain topped 300%, then took bigger profits by selling the remainder in two final trades. Most of that gain came before Quidel announced on May 18 that the FDA approved its SARS-CoV-2 Assay no longer needing an up-front sample extraction and instead using a reformulated buffer with a 10-minute heat step to save approximately 50 minutes in processing time to produce test results.

Despite recommending the sale of the Quidel stock and call options, Skousen wrote in a Home Run Trader update on May 18 that the company “smashed Wall Street’s expectations” with its latest quarterly earnings report that beat revenue forecasts by 9% and earnings per share estimates by 29%. 

“Topping expectations is the name of the game, of course,” Skousen said. “It is the single biggest short-term driver of share prices.”

The stock’s gain of more than 100% in less than two months makes gold, the most successful investment category by far so far in 2020 and in the last year, seem pedestrian in comparison.

Chart courtesy of www.YCharts.com

4 Top Coronavirus Recovery Stocks for ‘Wise’ Investors

Mark Skousen, a descendant of Benjamin Franklin, meets with Paul Dykewicz in Philadelphia.

4 Top Coronavirus Recovery Stocks to Buy Do Not Include Moderna

The S&P 500 rose 3.2% on Monday, May 18, bouncing back after losses the previous week. Part of the recovery came from encouraging words on May 17 by Fed Chairman Jerome Powell on the 60 Minutes television program and an announcement of early testing success in an experimental coronavirus vaccine from Moderna (NASDAQ:MRNA), of Cambridge, Massachusetts. Even though the stock more than doubled in price since April, it pulled back 10.41% on May 19 after a media report indicated the results were not as encouraging as first may have been portrayed.

The trading in Moderna, which soared in market capitalization to $29 billion on May 18 even though it sells no products yet, shows the risk of investing in a company based on initial testing that keeps hope alive it can be part of a COVID-19 solution. But much testing remains ahead.

Chart courtesy of www.StockCharts.com

Kramer Voices Caution to Avoid Chasing Vaccine Stocks

Hilary Kramer, host of a national radio program called “Millionaire Maker” and head of the Value Authority and GameChangers advisory services, said she is focused now on stocks that will be part of a successful recovery three-plus months after the first known COVID-19 death in the United States. While New York City where she works remains a hot spot of cases, the reopening of America’s economy has begun in most states after stay-at-home policies with limited exceptions became the norm across the country, she added.

“Now, we just need to address the economic disruption the medical crisis leaves in its wake,” Kramer said. 

Despite the market crash in March, the stocks featuring a potential COVID-19 vaccine in development did well, as did manufacturers of critically needed personal protection equipment (PPE), Kramer continued. Plus, videoconferencing shares went “through the roof,” she added.

“However, they’ve gone as far as they can for the immediate future,” Kramer said. “Everyone working from home now knows how Zoom Video Communications Inc. (NYSE:ZM) works. All the PPE shortages have been resolved. With at least 70 companies elbowing each other to create the first viable coronavirus vaccine, that space is far too crowded right now to justify the odds that most of those programs will never get market traction or even regulatory approval.”

Paul Dykewicz interviews money manager Hilary Kramer, whose premium advisory services include 2-Day TraderTurbo Trader, High Octane Trader and Inner Circle.

Kramer Sees Golden Opportunity Among 4 Top Coronavirus Recovery Stocks

Instead, Kramer said she has found profits by identifying options to capitalize on swings in sentiment for her 2-Day Trader advisory service. 

“It almost has been too easy,” Kramer opined. “Let the fear get too far away from reality and buy call options ahead of the inevitable bounce. Then buy puts to capture the downside when parts of the market rally ahead of the rest.”

She spoke of a 28% gain in an hour by going long in health care call options with Health Care Select Sector SPDR Fund (NYSE:XLV), then a week later notching 21% by shorting the NASDAQ proxy, Invesco QQQ Trust (NASDAQ:QQQ). Kramer acknowledged these kinds of trades are not “glamorous.”

“There’s no thrilling story to tell,” Kramer said. “But it’s how you make money in a world where the fundamentals are frozen.”

By compounding each position recommended since March 31, Kramer said those following her 2-Day Trader advice could have doubled their money. 

Newmont Gains Spot Among 4 Top Coronavirus Recovery Stocks to Buy

Newmont Corporation (NYSE: NEM) is an ascending gold mining stock that may interest investors who want exposure to precious metals. NEM offers a current yield of 1.01%, while its share price jumped 55.40% so far in 2020 to beat gold’s 33.59% return during that period.

Chart courtesy of www.StockCharts.com

“Gold is an age-old storehouse of wealth,” Kramer said. “If you’re primarily worried about losing what you have to inflation, a slowing economy or even social upheaval, this is your shield. The question is how you deploy that defensive power. While it is nice to see some mines reopen, costs are going to be high and production will be tentative until the virus is finally under control. That’s a wild card.”

With about 33 million Americans out of work, the COVID-19 economic crisis has led roughly 21% of all Americans who had a job in February to file for government assistance. Plus, the economic contraction of the first quarter is expected to worsen considerably in the second quarter.

Stocks like NEM are attractive and any rise in commodity prices may seem like a “windfall,” Kramer said. However, gold traditionally is best suited for people who want safety, not necessarily a profit, she added.

Chart courtesy of www.YCharts.com

“Gold continues to be a stable presence among the precious metals, steadily moving forward as it occasionally dips on profit-taking,” said Rich Checkan, president and chief operating officer of Asset Strategies International, a full-service tangible asset dealer in Rockville, Maryland.

Silver has been advancing nicely in the past week, playing catch-up to gold, Checkan continued.

“A little over a week ago, it took nearly 120 ounces of silver to buy 1 ounce of gold, Checkan said. “Today, it only takes about 100 ounces of silver to buy 1 ounce of gold. This is why people are looking at silver right here and now for profit potential. It can be that explosive.”

Rich Checkan, of Assets Strategies International, analyzes precious metals pricing.

Pension Chairman Weighs in about 4 Top Coronavirus Recovery Stocks to Buy

Bob Carlson, chairman of the Board of Trustees of Virginia’s Fairfax County Employees’ Retirement System with more than $4 billion in assets, said he has done well with gold recommendations. 

Carlson, who also leads the Retirement Watch advisory service, said gold was doing well before the pandemic, has continued to rise and he thinks it will be a good investment for a while.

Pension fund Chairman Bob Carlson answers questions from Paul Dykewicz during an interview before social distancing became the norm after the outbreak of COVID-19.

Chewy Makes the Cut of 4 Top Coronavirus Recovery Stocks to Buy

“From here, the recovery beckons,” Kramer said. “Companies that jumped into the spotlight now have space to become the giants of tomorrow. I got my IPO Edge subscribers into Chewy Inc. (NASDAQ:CHWY) at $27. The outbreak accelerated that company’s glide path by years and now that the revenue base has expanded so much faster than expected people complaining about profit margins have gotten a lot quieter.”

Chart courtesy of www.StockCharts.com

“I love online retail stocks like Shopify Inc. (NASDAQ:SHOP) helping independent stores make the transition to online sales and survival. I love food delivery, which is now the “new normal” for many households. And there’s more ahead,” Kramer added.

Chart courtesy of www.StockCharts.com

The vagaries of the market notwithstanding, the four top coronavirus stocks to buy offer a good chance to profit in a COVID-19 recovery and beyond. Each of the companies provides products and services that people likely will need and want well into the future.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street JournalInvestor’s Business DailyUSA Today, the Journal of Commerce, Seeking Alpha, GuruFocus and other publications and websites. Paul is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is the editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. Endorsements for the book come from Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Dick Vitale and others. Follow Paul on Twitter @PaulDykewicz.

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