Stocks

Times of crisis, such as the period of global disruption resulting from the COVID-19 pandemic, are hard on some economic actors. At the same time, they open opportunities for others.

How companies handle such extraordinary challenges depends on the abilities of their leaders and a series of seemingly arbitrary factors.

The S&P 500 offers a good bird’s eye view of the current situation of the stock market. The index began taking damage on February 19. Its losses culminated on March 23 and from that point, it began rising. It is currently still far below its February 19 high but moving in the right direction.

The stocks that powered this rally were the ones thatnot only survived but thrived through the COVID-19 crisis.

The best performing Q1 2020 constituents of the S&P 500 offer a superb snapshot of the type of company that has shrugged offthe lockdown or benefited from it.

  • Regeneron Pharmaceuticals Inc. is a company one might expect to thrive in a global pandemic. The biotech operation has been working on a COVID-19 vaccine, with promising results. Considering that, Regeneron may be the hottest stock pick of the year. As of June 2nd, their stock price is at $617,66.
  • Citrix Systems Inc. shot to the forefront of the S&P’s hottest stock rankings due to COVID-19 as well. The company develops solutions that allow locked-up users to share, deliver, and support applications. By March 31, 2020, Citrix stock was up 27 percent from the beginning of the year, while offering a dividend yield of 1 percent. As of June 2nd, their stock price is at $143.87.
  • Netflix Inc. is a multi-faceted entertainment company, offering media-services as well as producing its own shows. During the COVID-19 lockdown, there was a great demand for Netflix’s services. By March 31, close to the S&P’s bottom, Netflix stock had gained some 16 percent since December 31, 2019. As of June 2nd, their stock price is at $427,31.
  • At the beginning of the COVID-19 pandemic, scientists explored several treatment options. Among these options, existing drugs played a major part.

Gilead Sciences Inc.’s Remdesivir is one such drug, currently being considered and tested for the treatment of COVID-19. The company recently licensed Remdesivir to generic pharmaceutical companies all over the world. Following the hype sparked by the initial trials, Gilead stock registered gainsof 15.1 percent by March 31. There is a 3.8 percent current dividend yield involved in the Gilead stock equation as well. As of June 2nd, their stock price is at $73,26.

  • Clorox manufactures household cleaning products and disinfectants. In the wake of the hysteria about the transmission of coronavirus through contaminated surfaces, demand for Clorox’s products exploded. Clorox stock price followed suit, registering gains of 12.8 percent for the year, coupled with a dividend yield of 2.4 percent. As of June 2nd, their stock price is at $206,76.
  • Home computing and mobile devices became hot commodities amid the COVID-19 lockdown. With workers and students confined to their homes but continuing their activities online, graphics chip maker Nvidia Corporation saw its stock shoot up. On March 31, the gains it had registered since the beginning of the year reached the 12 percent mark. Nvidia’s dividend yield is 0.3 percent. As of June 2nd, their stock price is at $353,01.
  • Digital Realty Trust Inc., a technology real estate provider has been another gainer of the COVID-19 era. Although the March 23 market dip hurt Digital Realty’s stock price, it subsequently rebounded and continued its upward trajectory set at the beginning of the year. Although trading lower currently than its 2020 high, DLR stock is still one of the winners. As of June 2nd, their stock price is at $140.

The COVID-19 roulette favored companies creating products and offering services that fit the demands and needs resulting from the lockdown and the pandemic. This mostly meant biotech companies, entertainment providers, and technology businesses. The trend holds for US companies as well as their overseas peers, such as Switzerland’s Roche.