The Stocks That Are Going UP During the Coronavirus Crash

The Stocks That Are Going UP During the Coronavirus Crash

March 30, 2020

As we mentioned in our previous blog post here, in mid to late February, coronavirus shook the world and forced U.S. equities into a bear market.

This means that the general market has fallen more than 20% from its highs, and as the time of writing this, we are down more than 30% from the recent highs in February 2020.

However, that does not mean that EVERY stock is down from that time about one month ago. Here are some of the stocks that have performed (and might continue to perform) well during the coronavirus/covid-19 quarantine.

Disclaimer: This is not personal financial advice and not a recommendation to buy or sell any of the stocks listed below. This is for informational purposes only. Prices as of market close 3/27/2020 over a one month timeframe.

1. Zoom Video (Ticker: ZM)

Zoom Video is up about 33% over the past month as the coronavirus quarantine ramps up. We think this makes good sense as Zoom is positioned to benefit from the increased amount of people that will be stuck working from home. Zoom made about $21M in net income in the last twelve months of business.

Currently, Zoom is trading at $152 per share which is approximately:

• 66 times its annual revenue
• 47 times the value of all of its assets
• 1700+ times earnings
• (No dividend paid to shareholders)

Learn more about the P/E ratio and other ratios here: P/E Ratio Explained

2. Chewy.com (Ticker: CHWY)

Chewy is an online service that provides delivery of pet goods like food, treats, and toys. This certainly makes sense as less people are willing to head out to the grocery store, but don’t want to neglect their pet’s needs. Chewy does not make any net income, which may make it a riskier play in the short term. CHWY is up over 20% in the last month.

Currently, Chewy is trading at $36 per share which is approximately:

• 3 times its annual revenue
• (No Book Value to record)
• (No Net Earnings to compare price to)
• (No dividend paid to shareholders)

What is a Dividend? Answered Here: Dividends Explained

3. United Parcel Service (Ticker: UPS)

UPS operates a global logistics and package delivery service. Their brown delivery vans are known around the world. United Parcel Service stock is up over 8% in the past month. The market probably likes UPS right now because its $4 Billion+ in net annual income will most likely be unaffected, or even increase, from the coronavirus outbreak.

Currently, UPS is trading at $97 per share which is approximately:

• 1 times its annual revenue
• 26 times its book value
• 19 times earnings
• 3.8% annual dividend paid to shareholders quarterly

Read More How To Buy Stocks - A Step-By-Step Guide

In Summary

While the market on average is down - there are a few businesses whose stocks are holding steady and even increasing during these difficult times. We mentioned a few here for you to look into further.

We recommend that you have a solid personal financial foundation and investments in rock solid index funds before venturing out into the realm of individual stocks.

Again: This is not personal financial advice and not a recommendation to buy or sell any of the stocks listed below. This is for informational purposes only.

Please stay safe and feel free to reach out to us if you have any investing and trading questions.

MDAS

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P.S. New blog posts coming your way every Monday!

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