eToro
By eToro
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Going up under lockdown – five stocks to watch

You don’t need to be an investing expert to see the impact coronavirus has had on stock markets. The FTSE 100 fell from 7,403 on 21 February to a low of 4,993 on 23 March with billions wiped off the value of the UK’s largest listed companies. Things were worse in the US, with the Nasdaq falling from 9,817 on 19 February to 6,879 on 20 March.

However, as investors it’s important to keep calm and think ahead. To help, we’ve picked out five relatively healthy stocks that show there could still be good news among the panic.

  1. National Grid
    Even though people aren’t out on the streets shopping they’re spending money in their households. Powering televisions, computers and even having more cups of tea at home than usual means domestic electricity bills will be going up during the lockdown. This is where National Grid benefits as the dual-listed utility company is responsible for critical infrastructure around the UK. They are needed to literally keep our lights on, with ‘key worker’ status bestowed upon many of its team. Notably, since the lockdown was announced on 23 March, its share price has already jumped from 799p to 934p as of 30 March.


    Your capital is at risk. 

  2. Zoom
    Being able to video conference with colleagues for work (and fight off cabin fever with global happy hours) has never been more important. Virtually unknown apart from those working in multi-location companies, video conferencing software provider Zoom is the lockdown program of choice for many. Downloads are estimated to have so far soared 183% in March. The share price has reacted favourably too, climbing from $113 on 2 March to $151 as of 27 March.


    Your capital is at risk. 

  3. Netflix
    With everyone stuck indoors, it’s no surprise we’re streaming more TV. Netflix downloads have spiked in Europe and UK subscriptions are expected to increase by 15%, which some estimate could create £25m in additional monthly revenue. This has helped Nasdaq-listed Netflix hold much of its value, with its share price only falling from $381 on 2 March to $357 on 27 March while the index fell 16%.


    Your capital is at risk. 

  4. Hikma Pharmaceuticals
    There has never been a greater demand for the medicines created by pharmaceuticals. Specifically, Hikma is already developing drugs to combat illnesses linked to Covid19. The company has confirmed it is prioritising the manufacture of these medicines and the share price has responded, increasing from 1,899p on 2 March to 1,964p as of 27 March.


    Your capital is at risk. 

  5. Peloton
    Despite being merely inches from the biscuit barrel, many people are intending to stay in shape during this lockdown. This has created huge demand for the home workout market. Peloton, which offers home-based spin classes, has been very well-placed for this phenomenon and launched a new free trial offer as a result. Like Netflix, Peloton’s share price has held up (only slipping from $27 on 2 March to $25 on 27 March).


    Your capital is at risk. 

There’s no way of knowing what is ahead in this fast-moving crisis, and investors should do their research on all companies before buying in. But by assessing what we are going to be doing for the next… who knows how many months, we can get a good idea about which companies stand to flourish.

 

This is a marketing communication and should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without having regard to any particular investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past performance of a financial instrument, index or a packaged investment product are not, and should not be taken as a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared utilising publicly-available information.

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