The first week of April brought good news for many American stock investors as the Dow Jones Industrial Average hit a record high on Monday, April 5, and even the tech-heavy S&P 500 and Nasdaq composites rose 1.4% and 1.6%, respectively.
The spike occurred due to a favorable jobs report, unemployment rate of 6% and U.S. Treasury yields falling slightly, CNBC reported. However, the past month saw tech stocks falling, which many experts dubbed a market correction. David Bahnsen, chief investment officer for The Bahnsen Group, called the drops a “good old-fashioned repricing” at Forbes.com.
However, some stocks that rose as a result of the pandemic are logically falling now as video conferencing services, food delivery and streaming services become less important as people begin to embark on more in-person activities outside the home.
For instance, Zoom has taken a tumble since earlier in the month, as has streaming service Netflix. However, entertainment stocks like Disney could remain strong as the company isn’t exclusively relying on its highly popular Disney+ streaming service and should see gains as more people begin to travel and visit its parks again.
Likewise, cruise line and airline stocks spiked in early April. As we look toward a world where vaccines are common and people begin to travel again, what stocks beyond these common categories could show high yields throughout 2021 and beyond?
Last updated: April 6, 2021
While people may not continue to do virtually everything online in 2021 as they did in 2020 – they are likely to continue booking travel that way. Rather than banking on one airline or cruise line to outshine the others, consider Expedia Group, which is hanging steady in the $170s right now with room for growth, experts say.
Just as people begin to travel again, the end of the pandemic could mean an increase in the sale of beauty products as people regularly get cleaned up for work – not just for Zoom meetings.
Kiplinger rates Ulta Beauty as a strong buy, especially since its e-commerce sales remained solid throughout the pandemic, giving it a solid base for growth. In addition, a partnership with Target to distribute Ulta cosmetics within hundreds of Target locations bodes well for both companies. Ulta saw gains of nearly 2% over the weekend, trading now at $319 with room to grow.
Kiplinger also recommended that investors keep an eye on credit card company American Express. The company’s high-end travel rewards credit cards make it a favorite for business owners and frequent flyers, alike, so the pandemic put a damper on its revenue. The stock was recently at $146 with room to grow, Kiplinger says.
Simon Property Group
Simon Property Group, owner of retail, dining and mixed-use real estate in 37 U.S. states plus Puerto Rico, according to its website, is an S&P 100 company whose stock was highly affected by pandemic shutdowns and saw massive increases once vaccine distribution began; gaining 50% after the first vaccine got FDA approval for emergency use in the U.S.
Trading at just $115 right now and down from its five-year high in the $200s, several sources, including Bloomberg, say it is still a buy.
Alphabet Company (Google)
Not every tech company is poised to fall in the coming months. As Google ad revenue increases from brick-and-mortar retailers and restaurants reopening, Kiplinger predicts that Google will continue to rise. Its growth will also be fueled by travel-related advertising. Google jumped 4.12%, for an 86-plus point gain over the long Easter weekend. Retail investors might consider fractional shares of the tech giant if you can’t swing $2,000-plus in one shot.
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