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Stocks fell this week because fears of a new wave of coronavirus infections swept the market.
Over the weekend, the number of daily instances reached record grades in the United States and remained at the top of the week. Much of the Midwest and West Mountain have achieved record degrees for weeks, and in some areas, infections are affecting in Europe’s capacity, new daily instances continue to succeed in record grades, and some countries have begun to impose lockdown measures, adding France, which now has a curfew at nine o’clock at night at the top of the country.
These points of knowledge, along with previous warnings from epidemiologists about the threat of widespread outbreaks in the fall and winter, can lead to new restrictions in much of the country and even a total blockade, hampering economic recovery. most likely push stocks down, as they are trading near all-time highs.
But there are some corporations that seem to be winners even though the US is not a winner. But it’s not the first time He’s forced to block another blockade. Read to see why those 3: Polaris Industries (NYSE: PII), Pinterest (NYSE: PINS) and The Michaels Companies (NASDAQ) : MIK) – can still benefit, despite the coronavirus blockage.
Sales and inventories of recreational cars soared during the summer when the pandemic triggered an increase in demand, as Americans sought a socially distant vacation from typical ones.
An increase in COVID-19 cases in the winter, adding locks, can do the same for winter recreational equipment, adding snowmobiles (and off-road cars (HRVs) in the warmer parts of the country) This is good news for Polaris.
Polaris is the largest snowmobile manufacturer of the moment in North America, the parent company Ski-Doo Bombardier, and is the percentage of the soft advertising car market in North America. It also owns the Indian motorcycle logo and manufactures boats, but soft advertising cars and snowmobiles are its main source of revenue.
Inventory has dropped by 10% since the beginning of the year, as the company’s functionality at the time of the quarter hit through broker closures, quarter revenues dropped by 15%, but there are signs that the company is going through a strong moment in half, with control. noting “an unprecedented retail call for our off-road cars and motorcycles during May, June and now July. “
In the third quarter, sales recovered to a 10% increase (a 15% increase in North America), while consistent earnings increased by 70% to $2. 85, smoothly exceeding analysts’ estimates of $2. 19. predicted at a variety of $7. 15 to $7. 30, giving inventory a price-benefit ratio below 13, which appears to be a deal given its pandemic-driven demand.
Despite wider economic difficulties, retail sales have been strong overall, and Americans will most likely spend even on discretionary parts like HRV and snowmobiles if a winter lock eliminates other features to waste time and money.
It’s no secret that screen time and what accompanies it escape the pandemic, and while several moves have benefited from this trend, Pinterest is above the others.
Unlike other social networks, Pinterest focuses on positivity, prohibits political advertising, helping it avoid the tumult of presidential elections, and control says other people come to the site to improve, not necessarily to bond with others. a time when advertisers boycotted Facebook and suspicions grew about the influence of social media on politics, it also attracts others who have more time with the pandemic.
The corporation has published a marketing guide, explaining that escapism and optimism were one of the stages of pandemic research: when users are tired of demanding situations of social esttachment, they look for things like “future marriage” and “future apartment”. advises: “Your audience is starting to worry, get bored or lonely. People escape the offer into the future. “
The winter mix with an increase in coronavirus instances and some closures will likely cause a series of leaks from those fighting the pandemic. Pinterest’s user base grew this quarter, with a monthly increase in active users from 39% to 416. millions, and winter can be a success for the platform. If this base continues to grow, advertisers will remain strong in several categories, even if there is a crash.
According to the U. S. Census Bureau, sales at sporting and recreational outlets have soared in recent months after an initial fall in closed closures. Deprived of socialization and the same old tactics to pass the time, Americans have resorted to activities such as sports, training and recreation. at home they are an easy way to stay busy during a pandemic.
This is where Michaels, the country’s largest craft retailer, shines. Inventory soared due to the pandemic, with a particularly higher-than-expected performance. In the quarter of this time, sales same stores increased by 12%, adding a 353% increase in e-commerce. The company stepped forward in its virtual operations during the crisis, adding pieces like street collection so consumers can shop without having to enter the store. The company also announced that it would hire 16,000 workers for the holiday season, just over the 15,000 it added last year, a sign that it expects a smart holiday season.
Like Pinterest, Michaels is well placed for longer home benefits and an interest in recreational and similar projects. Another blockage would probably only increase the craft retailer’s expenses.