Companies are having to adjust to strict lockdown measures and turn to online sales. This may give investors a cheaper entry point for some big names.
The coronavirus has contributed to a huge economic downturn and many businesses are struggling to stay afloat. However, it is also a good time to look at investing in certain stocks that are at a great price and are expected to experience growth in the near future. Here are three top stock picks for Q2.
The tech giant is not immune to the global health crisis but there are still many reasons to bite into Apple (NASDAQ: AAPL). Since the pandemic has left people stuck indoors and unable to go out and socialize, connecting through technology is more important than ever. So it’s really no surprise that the giant tech company managed to post impressive figures at its recent earnings call, including revenue of $58.3 billion.
While many of Apple’s physical stores were hampered by the virus outbreak, the company’s online presence managed to offset some of the loss. There are also many economies around the world starting to reopen, and could help boost Apple even more as consumers will need to upgrade devices, get repairs, and purchase new software. The company has a strong foundation and is set up for long term growth, ending the recent quarter with $192.8 billion cash on hand.
Some people are still purchasing beauty products for their work-from-home face-time calls, but demand in other areas like movie sets and catwalks has vanished. Estée Lauder (NYSE: EL) is a well-known brand in the cosmetic world and recently reported net sales of $3.5 billion for its third quarter in 2020. This was a drop of 11% on the same time last year. One of the biggest drivers behind the drop is the coronavirus and the closure of a number of stores.
However, the company said that the pandemic has led to a demand for skin-care and hair-care products. This, coupled with the fact Estée Lauder looks after 1,700 mobile and e-commerce sites in more than 40 countries, mean the company is in a good position. While the company’s future of in-store sales could look very different in the future with strict social distancing and hygiene measures, it is confident that it will be able to facilitate recovery in the fiscal 2021. For now, the business will focus on its in demand skin care products and strong online sales, which accounted for 15% of the businesses global sales in 2019.
Las Vegas Sands
Las Vegas, the ‘City of Sin’, is well known for its 100+ casinos. However, the coronavirus has devastated the likes of Caesar’s (NASDAQ:CZR), MGM Resorts International (NYSE:MGM) and Wynn Resorts (NASDAQ:WYNN). Another big name, Las Vegas Sands (NYSE: LVS) is down more than 30% since the start of the year.
Las Vegas Sands executives revealed at the recent earnings call that they believe the company will rebound quickly in Asia more so than in the U.S, because the customers are more accustomed to wearing face masks and having their temperature taken. The company currently has casinos in Singapore and Macau and is looking at expanding to Japan.
The business went ahead with a $5.5 billion in capital expenditure programs in Asia to source more growth opportunities. Las Vegas Sands also made the decision to suspend its quarterly dividend payment in a bid to save billions of dollars to be used for acquisitions.
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