The COVID-19 outbreak has wreaked havoc on the stock markets, with many stocks dropping significantly over the past month. The S&P 500 is down more than 25% since the beginning of the year.
However, while some have suffered, other stocks have experienced strong growth in the last month. These primarily include biotech, virtualization, healthcare, food delivery, and other companies that provide high-demand services during these unprecedented times.
Since only 200 of the more than 4,500 stocks with a $50 million or more market cap have gained this year, it can be difficult to find buy-worthy stocks.
Here are four stocks that have soared this past month in spite of the ongoing coronavirus outbreak.
Allied Healthcare Products (NASDAQ: AHPI) has been one of the best-performing stocks of the year, jumping almost 1,370% year-to-date and gaining 30% earlier this month.
This should come as no surprise as Allied Healthcare Products is a mechanical ventilator manufacturer, and as more and more patients are admitted to hospitals with the coronavirus-related respiratory failure, ventilators are in very high demand.
According to Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, projected millions of Americans will contract the virus and many of them will require intensive care.
As such, AHPI’s mechanical ventilators will likely continue to be in high demand for the foreseeable future.
AHPI is currently trading at $18.35 and has traded in the range of $0.92 to $45.00 over the last year.
iBio (NYSE: IBIO) is one of the biotech companies currently working on developing a coronavirus vaccine and has experienced some significant volatility in light of the current circumstances.
Speculative investors are buying stocks like iBio in the hopes that they are able to be the first to go to market with a successful vaccine. As iBio is in the running as one of these companies, its stock jumped from $0.33 to $2.45 in just a few days.
The stock has since dropped quite significantly and is currently trading at around $1.11 — less than half of its peak. The company also has cash flow problems. In 2019, it burned through $14 million and reported a nearly $18 million net loss.
Blue Apron (NYSE: APRN) is a meal kit delivery service that stands to see significant sales growth as restaurants around the country continue to shut down in an effort to slow the spread of COVID-19.
Investors are clearly expecting Blue Apron to see significant gains in the coming months. APRN started off the month trading at around $2.50 and is currently trading at an astounding $11.51.
Like Blue Apron, Waitr Holdings (NASDAQ: WTRH) has become a very popular stock for investors in light of mass restaurant closures. WTRH was trading at around $0.34 at the beginning of March and is now trading at $1.28. The stock peaked at $2.60 on March 19.
How long this rally will last, however, is unclear as many Americans may opt for home-cooked meals over pricey delivery services. Meals from delivery services can be as much as 40.5% more expensive than eating at a restaurant, and groceries are even cheaper.
Waitr also has major cash flow issues. The company has $127 million in long term with only $29 million in cash-on-hand. Still, for the time being, Waitr is likely to benefit from the current food delivery demand.
Article By: Connor Beam