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8 Covid-proof stocks to watch right now

Fred Schebesta, finder.com.au
·5-min read
8 Covid-proof stocks to watch right now. Source: Getty
8 Covid-proof stocks to watch right now. Source: Getty

Stock markets around the world are buzzing through this pandemic and everyone wants to know what are the hottest stocks to watch right now.

More people than ever are jumping in for the first time to take advantage of record lows, moving their money out of other investments and withdrawing out of banks. We haven't seen this kind of volatility in decades. And coupled with the Reserve Bank keeping the cash rate at a record low 0.25 percent for six months straight – and it’s likely to stay this way for years – this stock market craze will likely continue for some time.

While we've seen some stocks fly, others have crashed. It can be tough to know what will be the next big thing.

Unfortunately, no company is completely Covid-proof. Investing in stocks will always be a gamble and you need to weigh the risks carefully, but there are some stocks that you should be keeping an eye on during this crisis.

Zoom Video Communications Inc (NASDAQ: ZM)

One of the greatest success stories to come out of this pandemic is the rise of e-video company Zoom. Millions of people around the world are still relying on video conferencing while working remotely. And the company's stock price is expected to continue rising after it reported second-quarter earnings that trumped analysts’ estimations by over US$150 million as the company reported revenue of US$663.5 million last quarter. Its share price has risen by 473% YTD, and peaked at US$478 on September 1, with no signs of slowing down.

Apple Inc (NASDAQ: AAPL)

Another technology stock to look out for that has benefited from work-from-home trends is Apple With a market capitalisation of over US$2 trillion, this company needs no introduction. Its products are more important to consumers than ever and its stock price growth is a reflection of this, after peaking at US$134.80 on September 1, doubling its share price value in the past year.

Betmakers Technology Group Ltd (ASX: BET)

Due to the growing demand for the racing industry during the pandemic, Betmakers has seen significant growth. It’s share price has increased by almost 500% in the past year, AU$0.045 at 30 June 2019 to AU$0.425 at 30 June 2020, raising the company AU$35 million.

Pointsbet Holdings Ltd (ASX: PBH)

Australian bookmaker, Pointsbet, has also seen continuous growth since March, despite the pandemic halting many sporting events. The company’s plan to expand its markets and digital offerings make it a very lucrative stock, increasing its value by more than 123% YTD. Pointsbet reported a turnover of AU$1.15 billion in FY20, tripling FY19 all while losses remained almost the same. Pointsbet also announced it has entered a five-year partnership with NBC in the United States, a TV network with a sports audience of more than 184 million people.

Kogan.com Ltd (ASX: KGN)

Kogan.com makes for the perfect case study on the importance of e-commerce during the pandemic era. It’s an online-only business, which means it isn’t suffering with losses from a physical retail store. In Kogan’s latest announcement, it stated that gross sales grew more than 110% and gross profits grew more than 160% over the financial year. Its share price has more than tripled since it’s low in March and shows promising future resistance.

AngloGold Ashanti (ASX: AGG)

History shows that gold companies are known to outperform during recessions and AngloGold Ashanti should be no exception to that trend. Its share price has increased by over 29% YTD and its estimate for full-year earnings has moved 5.43% higher within the past quarter.

Nintendo Co. (TYO: 7974)

Gaming is another booming trend during COVID and Nintendo is making hay while the sun shines. Nintendo’s increase in profit reportedly comes from Nintendo Switch owners buying games digitally, which offers higher profit margins than selling a game on a cartridge. Nintendo’s share price has increased by over 40% YTD.

CSL Limited (ASX: CSL)

CSL is a biotherapeutics company which makes products that will likely stay in high demand regardless of a recession. Despite its supply of plasma dropping by around 5% in FY 2020 versus FY 2019 due to challenges presented by COVID-19, it still managed to increase its revenue by 7.2%. CSL is planning to deliver a coronavirus vaccine within a year, which will be sure to send shares soaring.

While no company is COVID-proof and beating the stock market is just as difficult as it was before the pandemic, these are some of the companies that have been excelling in these volatile times. But there are clever tools that can make it easier to help you view and compare your investments like the Finder app. It now has a feature to connect your share trading accounts so you can view them all in one place.

There’s no magic trick to getting rich quick when it comes to stocks, but right now there is money to be made and it might not happen overnight but it’s worth checking out what all the fuss is about.

Fred Schebesta is Co-founder of Finder and new money fintech, the Finder app.

Yahoo Finance's All Markets Summit is back! Don't miss out. Book your ticket for 17 Septemeber. Source: Supplied
Yahoo Finance's All Markets Summit is back! Don't miss out. Book your ticket for 17 Septemeber. Source: Supplied

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