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5 of the Best Coronavirus-Proof Stocks to Invest In Now

Sreoshi Bera

It has been nearly three months now since the coronavirus outbreak and per World Health Organization’s latest figures 113,851 people have been infected, with fatalities rising to 4,015. Supply chain disruption due to the coronavirus outbreak is impacting businesses worldwide and inducing market volatility.

Despite the Federal Reserve’s 50-basis point emergency rate cut in the beginning of the month, investors’ panic led benchmarks to end in the negative territory on Mar 3. However, during this turbulent period, certain industries are still in position to provide healthy return on investments.

5 Shock-Proof Stocks

Since the outbreak of coronavirus in Wuhan, drug developers have been racing against time to develop a treatment and contain the infection. While some drug manufacturers are repurposing old antivirals, some are relying on modern approaches like DNA-based therapies that will give a more futuristic approach to medical science. Overall, the healthcare sector is booming and discovery of a vaccine can help to stabilize the market.

Many firms have been working on developing vaccines and medication for COVID-19. Notable among them is Regeneron Pharmaceuticals, Inc. REGN. The company is working on developing antibodies in genetically engineered mice that can be used to develop vaccine for coronavirus. Per recent reports, Regeneron is immunizing its antibody-generating mice with a harmless analog of the novel coronavirus. If the results are positive, Regeneron’s candidate will be ready for human testing by late summer.

Hence, this Zacks Rank #1 (Strong Buy) company makes it to our must-buy list. What’s more? It’s expected earnings growth rate for the current quarter is 37.1% against the Zacks Medical - Biomedical and Genetics industry’s projected earnings decline of 77.8%. The Zacks Consensus Estimate for Regeneron’s current-year earnings has been revised 7.1% upward over the past 60 days.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Another leading stock in this coronavirus race is Moderna, Inc. MRNA. This clinical stage biotechnology company that develops mRNA-1273, a vaccine candidate, is working with the National Institutes of Health on a healthy-volunteer study, which is expected to begin in April. Additionally, the company has joined forces with the Coalition for Epidemic Preparedness Innovations (CEPI) to develop a vaccine for coronavirus.

This Zacks Rank #2 (Buy) company’s expected earnings growth rate for the current quarter is 7.5% against the Zacks Medical - Biomedical and Genetics industry’s projected earnings decline of 77.8%. Moreover, the Zacks Consensus Estimate for Regeneron’s current-year earnings has been revised 7.1% upward over the past 60 days.

 

Meanwhile, amid the coronavirus outbreak, people aren’t expected to stop generating waste, and disposal of trash thus remains a concern. In fact, waste management companies are at an advantage in situations such as the recent one, as healthcare officials have to dispose of masks, gloves, syringes properly to curb the spread of infection.

An emerging winner in this field is Republic Services, Inc. RSG that provides non-hazardous solid waste collection, transfer, disposal, recycling, and environmental services. The company’s expected earnings growth rate for the current quarter is 9.6%. The Zacks Consensus Estimate for Republic Services’ current-year earnings has been revised 1.4% upward over the past 60 days. This Zacks Rank #2 company belong to the Zacks Waste Removal Services industry.

People are panicking and putting themselves into quarantine as warning bells ring across the globe. Panic driven buying is benefiting the retail industry, especially core essentials like food, water, medicine, and protective materials and accessories. In fact, store shelves are nearly empty and brands like Twinkies and Ding Dongs have reported increased demand. People are stocking up boxes of long shelf-life items along with bleach and hand sanitizers.

Performance Food Group Company PFGC that markets and distributes food and food-related products is sure to gain in this “stock up” trend. The company offers a wide-range of frozen foods, including meats, fruits, vegetables, dairy products, beverage products and much more.

Performance Food Group’s expected earnings growth rate for the current year is 21.1% compared with the Zacks Food - Natural Foods Products industry’s projected earnings growth of 6.9%. The Zacks Consensus Estimate for this Zacks Rank #1 company’s current-year earnings has been revised 6.7% upward over the past 60 days.

As the disease continues to spread, areas are being put under lockdown and companies are asking their staff to work from home.

People are spending more and more time at home and the utilities surely benefiting from this.. Our pick from this sector is TransAlta Corporation TAC, a Zacks Rank #1 company that operates as non-regulated electricity generation and energy marketing company. The company generates electricity through various generation fuels, such as coal, natural gas, water, solar, and wind for households and wholesale trading.

The company’s expected earnings growth rate for the next year is more than 100% compared with  the Zacks Utility - Electric Power industry’s projected earnings growth of 6.9%. The Zacks Consensus Estimate for this Zacks Rank #1 company’s current-year earnings has been revised 50% upward over the past 60 days.

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See Zacks' 3 Best Stocks to Play This Trend >>


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Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report
 
Moderna, Inc. (MRNA) : Free Stock Analysis Report
 
Republic Services, Inc. (RSG) : Free Stock Analysis Report
 
TransAlta Corporation (TAC) : Free Stock Analysis Report
 
Performance Food Group Company (PFGC) : Free Stock Analysis Report
 
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