3 Surprisingly Profitable Stocks in 2020

NASDAQ: CTXS | Citrix Systems Inc. News, Ratings, and Charts

CTXS – Not every stock is in bear market territory. These 3 are actually seeing a benefit from the societal trends forged by the Coronavirus. Learn more about CTXS, LAKE and TDOC. Plus a bonus pick in CPB.

The bear market has already stripped 32% from the stock market. Yet, that is the story for the average stock.

Airlines, energy, hotels and restaurant stocks have seen devastating 60-80% losses given the unique shape of the economy in this “stay @ home” world of the Coronavirus.

But for each of these losers, there actually are winners. And given the day over day increase in new cases around the US it is fair to say they will stay in the winner camp for a while. That is why I want to shine a light on these 3 uniquely attractive stocks: Citrix Systems (CTXS), Lakeland Industries (LAKE) and Teladoc (TDOC).

Let’s dg in deeper on the merits of each below:

Citrix Systems (CTXS)

Senator Kelly Loeffler purchased upwards of a quarter-million dollars worth of CTXS stock ahead of our nation’s Coronavirus pandemic for good reason. Why? Because CTXS is a cloud computing and software provider that should benefit from how the virus outbreak is pushing and more employees to work from home.

CTXS was already an successful firm seeing ample earnings growth and doubling of shares over the past 5 years. Yet this event is a clear turn in their direction for the way that companies will do computing in the future. That is why shares are up 8% this year and looking for more. In fact, the 5 Star analyst at Deutsche Bank sees $150 as proper upside for shares  The bottom line is that many more companies will pivot toward the cloud due to the coronavirus outbreak, possibly helping the likes of CTXS keep away from the negative pull of this market. And perhaps shockingly make new 52-week highs.

Teladoc (TDOC)

TDOC belongs in every investor’s portfolio.  That’s because Telehealth is the wave of the future and TDOC is leading the way.  Let’s remember that the Trump administration recently removed regulations pertaining to telehealth providers such as TDOC amidst the coronavirus pandemic.  That certainly helps to explain the 69% gain for shares this year (not a typo).

There is a good chance these regulations won’t be re-implemented after our science community eventually triumphs over the virus.  This is precisely why TDOC is surging.   Though the majority of older individuals still prefer face-to-face interactions with their doctor, more and more will opt for telehealth meetings from the comfort of home as time progresses.

Word is quickly spreading about the effectiveness of TDOC telehealth services, persuading that many more patients to give this seemingly futuristic virtual healthcare service a try.  TDOC representatives state the company is receiving upwards of 15,000 appointment requests every single day.  In fact, some TDOC telehealth patients are being served by physicians across state lines.  TDOC’s dramatic spike in daily patient numbers are likely to remain consistent through the spring and possibly even the summer as the coronavirus continues to wash through the nation.

The point is that sometimes long term trends like this need a kick-start. It is not hard to see how the Coronavirus may indeed be the jolt this industry needed to become common place. And with that TDOC will likely be the leader of the pack.

Lakeland Industries (LAKE)

LAKE makes the essential protective clothing healthcare industry professionals desperately need to remain safe when treating Coronavirus patients and others in need of medical assistance.  As an example, LAKE makes protective laboratory coats and coveralls worn by lab technicians and doctors.

As you no doubt understand, the demand for these products will continue to spike as the Coronavirus makes its way across the globe.  Even when countries get a handle on the outbreak, there will still be strong demand as folks around the globe will want to be prepared for any future events.

The net effect of this trend is a 52% increase in LAKE shares this year. But that is after coming off two weak years for shares. Likely this is a turnaround catalyst for the company that could get it back on its way to the all-time high of $29.

Campbell Soup (CPB)- bonus pick

CPB is the one pick in this article that has a small decline on the year. Yet it is hard to think of the talking about stocks benefiting from the Coronavirus and not include CPB.

So yes, it is down 7% this year. But that is a far cry from the 32% average decline of the S&P 500 stocks. The obvious reason for Campbell Soup’s resilience of shares is that cans of soup are a great choice to stock up on when folks are expecting long stays at home. On top of that you have the likely pain to the economy that will create fear of income loss for which soup is an good choice to downgrade to feed your family.

On the value front, the average analyst still sees $51 as the upside for shares. On top of that is the healthy dividend income of 3.1% which is a welcome sight that will attract risk averse investors in this market.

The other stocks above have more upside potential now and after the coronavirus trend. However, it is hard to overlook the attractive qualities of CPG that may make it the safer investment choice at this time.

Want more great stock picks? Then check out these additional resources:

3 “Stock Up” Stock Winners

4 Essential Stocks at this Time

Reitmeister Total Return portfolio – Discover the hedged portfolio strategy that Steve Reitmeister used to produce a +5.13% gain last week while the S&P 500 fell by -14.97%.

 


CTXS shares closed at $119.33 on Friday, down $-5.98 (-4.77%). Year-to-date, CTXS has gained 7.94%, versus a -28.91% rise in the benchmark S&P 500 index during the same period.


About the Author: Steve Reitmeister


Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...


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