America is opening for business again after many cities, counties and whole states shut down “non-essential” businesses to slow the spread of COVID-19. What stocks will do well as our nation puts out the “Grand Reopening” sign?
Here are five of my top ideas …
1. FLIR Systems, Inc. (NASDAQ: FLIR)
Employees reporting for work will be screened for COVID-19. And as you probably know, some can show no obvious symptoms … but still be contagious.
FLIR’s thermal imaging cameras can screen employees for elevated skin temperature (EST) — a possible sign a person is trying to fight an infection — before they enter a crowded workspace.
Look for this company to manufacture these devices on a mass scale.
The stock is attempting to break through its 200-day moving average, a key level of resistance. Overall, the stock is up 87% from its post-crash low.
2. Service Corp. International (NYSE: SCI)
Mortuaries have been hit hard by the pandemic because families have often been prohibited from gathering for funerals.
And that’s why Houston-based “deathcare” company Service Corp. is worth your attention … as things get as back to “normal” as possible.
As of December, the company owned and operated 1,471 funeral service locations and 482 cemeteries in 44 states, eight Canadian provinces, the District of Columbia and Puerto Rico.
Furthermore, it provides caskets, urns, flowers and other ancillary merchandise. Plus, it arranges funeral services, online and video tributes, even catering.
Service Corp.’s stock is trying to recover from the coronavirus crash in March. Get ready for a breakout soon.
3. The Walt Disney Company (NYSE: DIS)
When it recently announced earnings, Disney also announced it was suspending its dividend. This wasn’t done out of financial necessity. It was a “good faith” move as the company had to furlough tens of thousands of employees.
While I don’t expect theme parks to return to normal until a vaccine is widely available, Disney could generate positive cash flow in 2020 from its other divisions as economies around the world reopen. And as sports return on a limited basis, ESPN will be the Disney asset that recovers the quickest.
Disney shares were recently up 48% from their lows.
4. Live Nation Entertainment, Inc. (NYSE: LYV)
The lifting of the lockdown means people will go see live music again.
“With millennials favoring experiences over tangible goods and baby boomers desiring to feel young again, the culture of live music has never been stronger,” says Tim Bain, president of Spark Asset Management Group.
Events promoter and venue operator Live Nation — which owns Ticketmaster — could be poised to take advantage of this culture. The company’s CEO Michael Rapino expects show volume and fan attendance will return to pre-pandemic levels by 2021.
Rapino adds that most fans are keeping their tickets for rescheduled shows … even when they could have gotten refunds. “We know from fans that demand will be there when the shows return,” he says.
5. Starbucks Corp. (NASDAQ: SBUX)
Most of Starbucks’ company-operated U.S. stores are open … under modified procedures.
Although stores won’t be the oasis of remote working or lounging with a book as they once were — at least not right away — I expect consumers will gravitate to trusted brands as folks resume semi-normal lives.
And Starbucks’ strong drive-through presence and its industry-leading digital platform for carryout orders make it “one of the best-positioned restaurants to adapt to a new normal,” says Will Reese of UMB Bank.
All the best,
Sean
