Tags: stocks | covid | vaccine | investors

Barron's: 10 Hidden Gems in Quest for Stocks Boosted by Vaccine

Barron's: 10 Hidden Gems in Quest for Stocks Boosted by Vaccine
(Ababil12/Dreamstime)

By    |   Sunday, 15 November 2020 06:37 AM

With the hope of a vaccine to hopefully end the coronavirus pandemic, savvy investors should be on the prowl for stocks poised to rise as life slowly returns to normal.

U.S. drugmaker Pfizer Inc said on Monday its COVID-19 vaccine was 90% effective.

In the wake of that news, brokerage firm Jefferies took a look and listed 67 stocks with “potential upside” looking “beyond the obvious,” Barron’s said.

Barron’s didn't list all 67, but the financial publication did name 10 that haven’t moved as much as others.

  1. Huntsman (HUN),
  2. Paccar (PCAR),
  3. Brinker (EAT),
  4. Haemonetics (HAE),
  5. Freeport-McMoRan (FCX),
  6. Pra Health Sciences (PRAH),
  7. Blackstone (BX),
  8. Syneos Health (SYNH),
  9. Coca-Cola (KO)
  10. ON Semiconductor (ON).

The stocks cover a range of industries. As Barron’s explained:

  • Huntsman is a chemical maker and Freeport is a miner. Both can benefit from higher levels of economic activity coming out of the pandemic-induced recession.
  • Heavy-duty truck maker Paccar and ON Semiconductor are linked. ON Semi sells a lot of chips into the car market, and auto sales are improving and set to improve further with an effective vaccine.
  • Healthcare stocks such as Haemonetics, Pra and Syneos can benefit from elective procedures and drug research returning to normal.
  • Coco-Cola benefits from live sports restarting and Brinker can benefit from restaurants reopening.
  • Blackstone is a private-equity player and Jefferies analyst Gerald O’Hara writes: “A vaccine would likely pull forward the ability to achieve regular way private equity exits sooner than the market is expecting.”

Meanwhile, more than a dozen U.S. states reported a doubling of new COVID-19 cases in the last two weeks, with Chicago's mayor issuing a month-long stay-at-home advisory..

Positive early data from a large vaccine study earlier this week prompted a rotation into sectors that usually benefit from an upswing in the economy, such as financial and energy stocks, Reuters explained.

Market expectations of volatility are higher in late December to early January, around when Georgia's Jan. 5 run-off election for its two U.S. Senate seats, which will decide whether Democrats can gain majority control of that chamber, Reuters said.

Moody's Investors Service, in a note this, warned that ongoing legal challenges to Joe Biden's projected victory could unsettle markets and stir social tensions, which could have a material impact on the U.S. recovery.

Still, Moody's said its assumption was that "U.S. institutions will eventually resolve these issues without causing any meaningful, enduring credit impact."

Brad McMillan, chief investment officer at Commonwealth Financial Network, said investors are less worried about President Donald Trump's challenge to election results than about the chance that Georgia voters will hand control of the Senate to Biden's Democrats on Jan. 5.

"The story of the start of November was everyone feeling good that the world wasn't ending," McMillan said. "The story for the rest of the month is likely to be how investors start worrying again."

© 2021 Newsmax Finance. All rights reserved.


   
1Like our page
2Share
StreetTalk
With the hope of a vaccine to hopefully end the coronavirus pandemic, savvy investors should be on the prowl for stocks poised to rise as life slowly returns to normal.
stocks, covid, vaccine, investors
474
2020-37-15
Sunday, 15 November 2020 06:37 AM
Newsmax Media, Inc.
 
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved