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Many of us repeat the mantra “and this will also happen” as the new coronavirus pandemic continues. The virus has crushed the economy, with GDP falling by 12% in a quarter and unemployment of 11%. The virus has been trapping us in our offices since March. It’s worse than ever, but it’s going to happen too. And now, some of the most productive stocks by 2020 can see a subsequent uptick to COVID.
Of course, the virus won’t magically disappear, but our concern will dissipate. There will be more treatments, a vaccine and the economy will be out of jail.
Having said that, what do you buy to prepare for that day? Which stocks have the most productive chance of big profits in 2020, 2021 and beyond? How can you invest today for this major day tomorrow?
So, with all of that in mind, let’s dive in.
In the third quarter of fiscal 2020, Visa reported a net source of earnings of $2.4 billion for earnings consistent with a consistent percentage (EPS) of $1.07, with a profit of $4.8 billion. That said, profits fell by 23% year-on-year, while profits decreased by 17% during the same constant period.
This deserves to have surprised anyone. However, the inventory fell $3 consistent with a consistent percentage overnight, recovered all the loss the next day and then fell again. It seemed that investors were taking the consistent visa percentages with every drop. For what? Because they see in the long term have an effect on the COVID-19 virus, which favors electronic payments.
These changes in the combination of benefits, which favor higher-benefit transactions, meant that Visa could exceed analyst estimates. Meanwhile, weakness in general transactions, i.e. cross-border payments, considered temporary. However, the strength of new card types and more profitable payment flows are considered permanent. That’s what Visa CEO Al Kelly predicted at the company’s convention, and analysts bought it. In fact, RBC Capital reiterated its call to purchase.
Visa is now the largest banking company in the U.S., in terms of market capitalization, and the maximum sustainable banking investment you can make right now. The company’s $426 billion valuation and its existing logo of about 33 times the predicted profits give it the monetary strength to buy small money-generating, or fintech-generating, and remain relevant. This is something that even the largest banking processors cannot say.
Therefore, as the lock becomes easier, Visa will use this firepower. The long-term long-term lies in companies that even pay intermediaries, making V one of the most productive shares by 2020.
Why are analysts pounding the table for a retailer with 3% growth, a forward price-earnings (P/E) multiple of about 26 and a dividend yield just 1.67%?
Because it’s Walmart.
Walmart didn’t come with any direction at its most recent profit pitch. But according to Wall Street, analysts have a profit of $546.42 billion this year. That said, Walmart CEO Doug McMillon continues to look for expansion everywhere.
The latest initiative is Walmart Plus. It’s pitched as an alternative to Amazon (NASDAQ:AMZN) Prime, offering same day delivery of groceries and discounts at Walmart fuel pumps. In turn, the program could make Walmart.com profitable — something most e-commerce sites can’t say.
All in all, Walmart follows a well-marked path here. CVS Health (NYSE: CVS) bought Aetna in 2018, becoming the largest fitness insurer in the U.S. Through income. Amazon, Berkshire Hathaway (NYSE: BRK. A) and JPMorgan Chase (NYSE: JPM) have also partnered with the implementation of Haven Health fitness insurance. They can use a retail point of sale and an immediate source of attention number one.
In addition, McMillon’s recent control resolution showed that he was willing to appeal to foreigners, as he hired a Target executive (NYSE: TGT) as the new Chief Marketing Officer.
Collectively, Walmart is a conservative investment that continues to work well. It is unreasonable and may take time to pay, however, your patience will be rewarded.
Starbucks survived The Luckin Coffee attack on its operations in China and is taking classes in the United States.
Luckin was canceled through the NASDAQ after a scandal in which he created fake sales. But the company had genuine and engaging ideas, takeaway and delivery to lessen its physical footprint.
That said, that’s how Starbucks is adapting to the pandemic. The company used its app, driving and delivery to suffer only a 5% drop in sales in its last quarter. In turn, it is now doubling the strategy while the 400 final stores.
With all this in mind, the new strategy makes Starbucks one of the few food service titles considered.
Then, instead of sofas and WiFi, Starbucks goes with the meters, delivery and smell of exhaust gases. That might not save the current quarter, when analysts expect EPS of 29 cents and $6 billion in earnings. This is less than a general quarter, but you can create a successful “new general.”
Prior to the pandemic, Starbucks had explained its outlets as a “third place. It is not the area or the office, but a non-public area for meetings and work. But until there’s a vaccine, that area will disappear.” , Starbucks is looking to redefine it as an extension of its application.
However, when the pandemic dissipates, this “third place” activity will return, as will Starbucks’ earnings. So far, Starbucks has reduced its dividend, a profit of $1.64 that generates 2.14%. In turn, this has maintained the loyalty of top analysts. In fact, Tipranks follows 24 Starbucks analysts, and none have smooth sales. Its average value target is also $83.47, which would be an 11% gain.
In addition to welcoming their reaction to the pandemic, analysts also appreciate Starbucks’ reopening operations in China. Come to Starbucks occupying Luckin’s niche and they continue to grow there.
Despite its failures, Intel continues to make more money.
Here’s CEO Robert Swan for the June quarter:
Taken in isolation, Intel’s recent highest earnings have been spectacular. The corporation reported non-GAAP EPS of $1.23, 16% more year-over-year-on-year, with a profit of $19.7 billion. There was also $10.6 billion in loose money and $2.8 billion in dividends.
However, shares trading at $61 the previous week, before earnings, opened on July 29 at $49.30. The dividend now yields 2.73% and Intel’s final P/E ratio is 9. Meanwhile, the rival Advanced Micro Device (NASDAQ: AMD) is quoted to a PE of approximately 150.
The explanation for why Intel continues to have problems with the next iteration of Moore’s Law. He promised his consumers chips with 7 nanometer remote circuit lines, but he still can’t manufacture them. This means that Intel will now purchase production from its production rival, Taiwan Semiconductor (NYSE: TSM). It would be as if Ford CEO (NYSE: F), Jim Hackett, said his new pickup truck would be manufactured through Toyota Motors (NYSE: TM)
In addition, some big names in finance have an opinion on INTC. “I have no explanation why buying Intel,” said Jim Cramer, a CNBC analyst. “Intel has no chance of reaching or beating Taiwan Semiconductor for at least the next half-decade, if it ever does,” wrote Chris Rolland, Susquehanna’s analyst.
Sure, it’s true that Intel has problems. Intel hasn’t had an entrepreneur at the helm since the late Andy Grove retired in 1998. However, Intel is not dead yet — not if they can find a great engineer, put them in charge, let them build a team, and lead.
This is a stock that can be saved with a single corporate announcement, a single key hire. That said, INTC stock is another one of the best stocks for 2020 that could see a rebound from COVID-19.
Caesar’s new acquisition was designed through investor Carl Icahn, who owned 28.5% of the former Caesar and 10% of the new company. That makes CEO Tom Reeg, who built Eldorado de Reno, the new king of Las Vegas. That said, the new company’s functionality will have how long the debt will remain reasonable and how temporarily the economy is reopened.
Overall, Eldorado was barely one-quarter the size of Caesar’s. However, it raised $6.6 billion of the cash needed for the deal at an average interest rate of 6.77%. It also sold $722 million of stock and took on Caesar’s existing $9.7 billion in debt. The company now has about $23.4 billion of tangible assets burdened by $19.3 billion of debt.
But once the pandemic has dissipated, be careful. The new Caesar’s will run at 55 international casinos and Reeg has sold small casinos in Vicksburg, Mississippi and Kansas City at the insistence of regulators. That said, you’ll also have to sell at least one of those homes in Las Vegas after the merger; the top customer is likely to be Twin River Worldwide Holdings (NYSE: TRWH).
Reeg, and the regulators who signed off on the deal, are betting that the U.S. gambling market bounces back quickly.
In general, even if everything opens up, we also have to worry about the economy. Caesar’s action is a bet on the virus and a bet that the 2019 economy will return in 2021.
On July 14, Delta Air Lines announced its quarterly effects in June before the market opened. And they were terrible.
Sell, sell, sell, right? Yaya. Buy, buy, buy.
On July 15, the stock rose by almost 10%, with investors coming back and Delta surviving.
The reason? Delta ended the quarter with $15.7 billion in cash. Investors know Delta is flying low, but trees are transparent.
In addition, Delta took $5.4 billion from the CARES Act and used much of the $3.8 billion grant. He took out a $1.6 billion loan with warrants representing 1% of equity at $24.39 consistent with the stock. Delta opened on July 16 at $27.75, and was still in the currency on July 31.
In addition to paying workers not to do anything, Delta is also in the last 3 months to modernize its fleet. Your Boeing 777 (NYSE: BA) is being retired. But all your Airbus (OTCMKTS: EADSY) A-350 fly back on long-distance routes.
That’s another explanation for optimism. While 3 passengers on their Endeavour Air have recently tested positive for COVID-19 from Albany, Georgia to Atlanta, the rest of the world is recovering. He has a pandemic in the United States, which means that overseas operations are slowly returning.
Delta is recently held hostage to the COVID-19 pandemic. Investors know this, but inventory continues in the industry because Delta took the CARES Act.
Recent surveys show that dressing in a mask to fight spread is even though everything takes off, even among critics of practice. And if the other Americans, in spite of everything, have become smarter than their leaders, Delta can take off quickly.
Disney reopened its theme parks amid a pandemic, and analysts saw it as a sign of confidence and not despair.
All of this is a component of the magical thinking that kept Disney’s inventory at the top of the crisis. Inventories fell to a low of $85 in March, but opened on July 31 at more than $114. This means that inventory has recovered the component of its loss due to the pandemic, even though analysts expect a loss in 20% less revenue, or $15.9 billion.
Also, how can Disney’s revenue fall so little when its parks have been closed for a quarter and account for a third of its overall revenue? How can revenue fall so little when cinemas are closed and there are no sports? How can revenue fall so little as cable cutting continues and Disney still groups its broadcast facilities at an unmarried Netflix price (NASDAQ: NFLX)?
By the June quarter, the study’s revenue is expected to be close to zero. The same goes for the theme park’s income. Even if direct revenue to consumers doubles, with an exclusive in the musical Hamilton, you can’t make up for that. (The play was originally purchased for a performance at the theater). Disney earned $9/month for its sports networks for each cable subscriber, while charging $5/month for ESPN.
For now, Wall Street is hunting beyond the pandemic. Disney proves that a virus-free life is imaginable in its “bubble.” NBA and MLS games take up position in their “Wide World of Sports” complex, with quarantined players in their hotels.
Collectively, however, he would wait in Disney shares after the profits. The pandemic will last at least two more quarters. Disney compensates for its loss of profits on streaming media networks and will do so until it starts to raise its prices. And at some point, investors will take a look at the truth of this scenario and sell.
This is where you buy, when the pink glasses are damaged and the elves that fix them are saved.
Publication 7 of the most productive stocks by 2020 that you can see a subsequent uptick to COVID gave the impression first on InvestorPlace.