The second wave of the deadly coronavirus is slowly gripping the United States. On Wednesday, the nation recorded over 100,000 COVID-19 cases in a single day, a new record. Maine, Indiana, Minnesota, Nebraska, and Colorado are the worst impacted states. The rise in death toll by 21% across the country is even more disturbing. Experts say that as winter is approaching, there is dual risk from the pandemic, as well as…
the virulent flu.
At this juncture, investors need to take a hard look at their portfolio. To maximize gains, they must pick stocks which have the ability to capitalize on the looming crisis. The businesses of these stocks should be in a position to flourish as the intensity of COVID-19 increases. Companies which can identify opportunities in the crisis and position themselves for gains will survive in the long run.
As the pandemic rolls on, we will need a high quality and agile healthcare system. Moreover, as we spend more time indoors, the companies that make life simpler for us through offerings will also be in demand. Evidently, the companies primarily involved in vaccine development and virtual healthcare will be some of the biggest beneficiaries. Similarly, technology companies that enable a seamless remote working environment have gained immensely during this phase and should continue to do so.
Johnson & Johnson (JNJ), Zoom Video Communications, Inc. (ZM), Teladoc Health, Inc. (TDOC), and Quidel Corporation (QDEL) are four such companies that are poised to soar further as the COVID-19 crisis deepens.
Johnson & Johnson (JNJ)
JNJ is known for its consumer products such as baby care, women’s health, and wound-care. However, it has a major presence in the pharmaceutical and the medical devices segments as well. JNJ’s pharmaceutical segment focusses on immunology, pulmonary hypertension, neuroscience, infectious diseases, oncology, and cardiovascular diseases. Meanwhile, the company’s medical segment deals with surgical, orthopedic, cardiovascular, diabetes care, and ophthalmic requirements.
Earlier this month, JNJ entered into a preliminary agreement with South African pharmaceutical giant, Aspen Pharmacare Holdings, to manufacture 300 million doses/year of the COVID-19 vaccine candidate, Ad26.COV2-S, commercially. The objective behind this association is to distribute the vaccine in the South African continent, which has limited manufacturing capacity.
JNJ rebounded in the third quarter that ended September 2020. The company’s revenue for the quarter climbed 1.7% to $21 billion. The consumer products segment saw a recovery in revenue, but the medical devices segment declined 3.6%. Notably, JNJ’s pharmaceutical segment could withstand the adverse market condition, driven by the robust momentum of its blockbuster drugs, Darzalex, Stelara, Zytiga, and Imbruvica. JNJ’s EPS for the third quarter surged 101.5% year-over-year to $1.33.
The street estimates JNJ’s fourth-quarter revenue to be $21.7 billion, indicating a 4.7% rise year-over-year. Meanwhile, EPS for the quarter is likely to drop 2.7% to $1.83. Over the past year, JNJ gained 7% to close yesterday’s session at $139.76.
How does JNJ stack up for the POWR Ratings?
B for Buy & Hold Grade
A for Peer Grade
B for Industry Rank
B for Overall POWR Rating
The stock is also ranked #6 out of 240 stocks in the Medical – Pharmaceuticals industry.
Zoom Video Communications, Inc. (ZM)
ZM is one of the leading unified communication platforms. It offers video and online chat services, enabled by a cloud-based peer-to-peer software platform. Some of the other services include telecommuting, social chats, online education, and webinars. Over $100,000 of ZM’s trailing 12-month revenue is contributed by more than 900 customers. The company has become the most preferred platform for people working and studying remotely in this pandemic. Soon, the company intends to enter the online event hosting segment.
According to a recent development, German telecom giant, Deutsche Telekom, entered into a…
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