If you’re someone who is looking at plans for your portfolio pickup that are likely to do well for the rest of the pandemic there are a few areas that are likely to do better than others. Strategists have been looking for the obvious like healthcare, home goods, online retail, and technology.
Executives of major drug makers who are announcing that they may have vaccines ready for limited use by the end of year, but their effectiveness will determine how fast the rest of the economy can get back to the pre-pandemic levels of in person interaction. Pfizer, Moderna, AstraZeneca, Johnson & Johnson, and Norovax are all approaching or in their Phase 3 trials and could all be the “one” to get the ball rolling.
The strategists at JP Morgan have listed their top 25 choices that are all expected to outperform the S&P 500 average by about 9% in the next year. They believe these companies are all in for good returns, especially for those investors that are looking to do short sales. This “basket” of stocks are tied to an election victory by former Vice President Joe Biden and that if President Donald Trump wins these 25 are expected to do 66% worse than their current estimations.
The 25 stocks come from 15 different industries. It includes Scotts Miracle-Gro Company in the chemical industry. In leisure products it lists Peloton Interactive, YETI Holdings, and Vista Outdoor. A surprise is in retailing where in the Hotel Restaurant & Leisure area Chipotle Mexican Grill, it also includes Multiline Retailer BIg Lots and Food Retail club center Costco Wholesale as well as beverage company Boston Beer. In internet & Direct marketing retail as well as diversified consumer services to support those they list Chegg, K12 inc, Wayfair Inc, Grubhub, Fiverr International, Stamps.com, and Overstock.com. In household products both Clorox and Central Garden & Pet Company made the list. In healthcare and biotechnology there are American Well Corporation, Moderna, and Norovax. Their list also includes software and technology companies Zoom Video Communications, Logitech International, and Bandwidth Inc. Finally in Equity Real Estate Investments both Equinix and Digital Realty Trust made their list.
As for the reasoning for the difference between election results they believe that the major difference between how a Biden presidency or Trump presidency will handle the coronavirus and economic response going forward in 2021, as they expect them.