Since March 11th, 2020 when Coronavirus (COVID-19) reached pandemic status according to the World Health Organization (WHO), the pandemic has affected all aspects of our daily life. The pandemic has caused enormous disruption to the economy igniting a long overdue correction in the global stock market – but what the best coronavirus stocks?. Here’s our picks for the best stocks to buy during the Coronavirus pandemic.
Below are tops stocks to buy during COVID-19 pandemic.
Citigroup Inc. (NYSE:C)
Share Price $46.32
Citigroup Inc. is a diversified financial services holding company which provides a large of financial products and services for consumers, government and corporations. Citigroup reports via three business segments below. (Total revenue contribution 2019)
- Global Consumer Banking (GCB) (44%)
- Institutional Clients Group (ICG) (53%)
- Securities services. Corporate/Other (3%)
Reasons to buy Citigroup
- On 15th April 2020, Citigroup announced its quarter one results; the firm revenue grew to $20.73 billion. This was an 11.6% increase compared to the same quarter in 2019. In addition, the firm has generated $7.58 earnings per share in 2019.
- The price to earnings ratio of Citigroup is 6.2 meaning its trading a less P/E ratio compared to finance sector average P/E ratio of 13.
- Currently, 80% of the stock is held by high institutions which is a signal of strong market confidence in this company.
- Citigroup has a Price to Book ratio (P/B) of 0.55. P/B Ratios below 1 indicate that a company could be undervalued with respect to its assets and liabilities.
Tesla Inc. (Nasdaq: TSLA)
Share Price $819.42
Tesla has become a dynamic technology innovator with its electric vehicle. The firm has transformed the electric vehicle market just like Amazon and Netflix in retail and entertainment respectively.
In the United States tesla controls 60% of battery powered electric car sales. Tesla operates under two segments Automotive and energy generation& storage. In 2019, automotive segments contributed 93.7% of revenue while energy generation and storage contributed 6.3%. You can see what makes this one of the best coronavirus stocks?
Reasons to buy Tesla:
- In full year 2019, Tesla delivered 367,500 electric vehicles a 50% increase YOY. The company has projected in the year 2020 they will deliver 500,000 units. This will enable the firm to achieve cost of production efficiencies. In addition, both solar and storage will be up at least 50% in 2020.On April 29th 2020 Tesla announced its quarterly results earning$ 5.99 billion which was increase 31.8% compared to same quarter last year. The firm generated ($4.92) earnings per share in 2019.
- Tesla has established itself as a leader in the electric vehicles segment. Model 3 Sedan which began as its flagship vehicle has contributed to its strong performance. In March the firm started to deliver its new model Y which is expected to boost its 2020 revenue because it was delivered ahead of schedule.
- China is the biggest electric vehicle market for the firm. Tesla has established a new Gigafactory in Shanghai and Berlin to grow its market share and help in generating solid revenue in the near future.
- Currently, 53.8% of the stock is held by high institutions which is a signal of strong market trust in this company.
Facebook Inc. (Nasdaq: FB)
Share Price $212.35
Facebook Inc. is the world’s largest social media platform with almost 3 billion active users every month. The company has grown from single Facebook app to multiple apps like photo and video sharing app Instagram and WhatsApp messaging app owing to acquisitions. Reasons to Buy Facebook;
- Facebook continue to witness an increase in online and mobile advertising spending. Online videos have become the most lucrative components on digital advertising because video ads are generating more revenues than its photo and text based substitutes. The firm launched watch, a dedicated tab for video viewing to bring more ad dollars.
- Facebook has introduced its ad platform on Instagram which has attracted more than 3 million advertises. In addition, the firm has started placings ads on the Explore tab which is used by more than 50% Instagram users every month, increases the platform’s monetization opportunities. Facebook is on aggressive drive to monetize all the opportunities presented by its subsidiaries. This is expected to increase its revenue in 2020.
- Lastly, Facebook continues to test the payments feature on WhatsApp in India and intend to launch the same in other countries. The firm is planning to spend over $ 3 billion in the next 10 years on augment reality /virtual reality (AV/VR). Facebook has a strong balance sheet which makes it attractive stock to investors.
- On April 29th 2020 Facebook quarterly earnings stood at $ 17.74 billion an increase of 17.6% compared to the same quarter in 2019
- Currently, 65.29% of the stock is held by high institutions which is a signal of strong market trust in this company.
Anheuser-Busch Inbev (NYSE:BUD)
Share Price $43.34
Anheuser-Busch InBev, is a brewing firm that engages in the production, distribution, and sale of beer, alcoholic beverages, and soft drinks. The firm has a portfolio of more than 500 beer brands. The social distancing restrictions, closing of bars, restaurants and live sports events required to combat Covid 19, caused a large decline in demand of its products. This caused the stock to be high punished by investors, and makes it one of our top picks for coronavirus stocks.
Reasons to buy Anheuser-Busch InBev:
- With the reopening of the global economy the company will be one of the biggest beneficially because of its high demand of alcohol products.
- The price to earnings ratio of Anheuser-Busch InBev is 9.38 meaning its trading a less P/E ratio compared to consumer staples sector average P/E ratio of about 25.44
- On May 7th 2020 the company quarterly earnings stood at $ 11 billion a decrease of 12.6% compared to the same quarter in 2019.
Applied Materials (Nasdaq: AMAT)
Share Price$ 53.81
Applied Materials provides manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets.
Reasons to buy Applied Materials stocks:
- On February 12th 2020 the company quarterly earnings stood at $4.16 billion an increase of 10.9% compared to the same quarter in 2019.
- Applied Materials is the leading semiconductor fabrication tool supplier. The semiconductor chips are the engines that will power 5G devices this will benefit the firm and its revenue is expected to grow by 12.5% YOY in 2020.
- The price to earnings ratio of applied materials is 17.82 meaning it’s trading a less P/E ratio compared to computer technology sector average P/E ratio of about 39.22.
Currently, 80.81% of the stock is held by large institutions which is a signal of strong market trust in this company and makes this one of our favorite coronavirus stocks.