4 Food Stocks to Buy as Coronavirus Takes a Worse Turn
Two vaccines have already been rolled out but COVID-19 seems to be tightening its grip with each passing day. The United States has seen a sudden surge in both new infections and deaths and the Centers for Disease Control and Prevention (CDC) has warned that the situation can turn worse in the coming days.
The latest reason for worry is the spreading of the new strain in the United States. Experts say the new strain is far more dangerous and deadly and the efficacy of the two vaccines against this is still unknown. It thus won’t come as a surprise if people start stockpiling food items and other grocery products once again.
CDC Warns About COVID-19 Spread
On Jan 16, the CDC warned that the highly transmissible COVID-19 strain detected in the U.K. could become the main strain in the United States by March. The new report ays that the strain has the ability to show “rapid growth in early 2021” and has urged for increased compliance and stronger strategies, including using masks and social distancing.
According to the CDC data, 76 cases have already been found in the United States with the new variant but the strain is likely present in several people who have gone undetected so far.
U.S. Tops 2 Million New Cases
The CDC report comes as the United States topped 2 million new cases last week. On Jan 16, Johns Hopkins University reported 198,218 new coronavirus cases and 3,286 deaths in the United States. The last 46 days have seen more than 100,000 people being hospitalized due to COVID-19.
Along with new cases, there has also been a surge in hospitalizations and deaths in the United States, which has been a cause of concern. According to a report in the CNN, a recent study by the University of Washington projects more than 566,000 deaths by May 1 in the United States.
Our Choices
The COVID-19 pandemic has changed the way people have been shopping and eating. Demand for packaged food has gone up given that people are stockpiling on grocery, and even packaged and processed food every time fears of the virus increases. Also, health-conscious people might start stockpiling on health foods and supplements. This thus makes it an opportune time to invest in the following stocks that are sure to gain in the near term.
BG Foods, Inc. BGS manufactures, sells and distributes a portfolio of shelf-stable and frozen foods, and household products in the United States, Canada and Puerto Rico. Its products include frozen and canned vegetables, oatmeal and hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegars, maple syrups and a range of other products.
The company’s expected earnings growth rate for the current year is 43.3%. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the past 60 days. BG Foods carries a Zacks Rank #2.
The Hain Celestial Group, Inc. HAIN offers a wide range of popular better-for-you groceries, snacks and tea.
The company’s expected earnings growth rate for the current year is 51.2%. The Zacks Consensus Estimate for current-year earnings has improved 3.1% over the past 60 days. The Hain Celestial Group holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hostess Brands, Inc TWNK is involved in developing, manufacturing, marketing, selling and distributing sweet goods primarily in the United States. The company produces new and classic treats which include Ding Dongs, Ho Hos, Donettes, Fruit Pies as well as Twinkies and CupCakes.
The company’s expected earnings growth rate for the current year is 23%. Its shares have gained 4.1% in the past three months. Hostess Brands has a Zacks Rank #2.
Sprouts Farmers Market, Inc. SFM, which operates in a highly fragmented grocery store industry, has a unique model that features fresh produce at the center of the store, an expansive bulk foods section, and a vitamin department focused on overall wellness.
The company’s expected earnings growth rate for the current year is 81.6%. Its shares have gained 4.9% in the past 30 days. Sprouts Farmers has a Zacks Rank #2.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>
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The Hain Celestial Group, Inc. (HAIN) : Free Stock Analysis Report
B&G Foods, Inc. (BGS) : Free Stock Analysis Report
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