In March, the stock market took a beating as the coronavirus became a full-blown pandemic. Businesses shuttered, supply chains broke down and millions of Americans lost their jobs within a matter of weeks. As a result, the market fell more than 30% from its record high in February.
“There are a few sectors that are outperforming the S&P 500 right now, which in most cases means they’re not down as much year-to-date as the overall market,” said Arielle O’Shea, investing and retirement specialist at Nerd Wallet. The biggest standouts, she said, are health care, information technology, consumer discretionary spending and consumer staples.
Here’s a closer look at some of those top-performing industries and the key stocks that have benefited.
1. Work From Home (Zoom Communications): Zoom (ZM) stock was already on the rise well before the pandemic hit. But the explosion of work-from-home setups amid the coronavirus concerns made Zoom a household name. As of December, Zoom had about 10 million active users. By the end of April, there were more than 300 million people on the platform. The stock is up 136% year-to-date.
2. Online Retail (Amazon):
Amazon is one company that’s been able to not only keep up operations but also fill the now-massive demand for online deliveries. The retail giant also experienced a boost from increased usage of its cloud-based software by employers, making it a uniquely coronavirus-proof company. Shares are up nearly 28% for the year.
3.Online Streaming Service (Netflix). Indeed, digital streaming powerhouse Netflix has seen an upswing in its subscribers and stock value. According to Reese, revenue is expected to grow 23% in 2020 and 18% in 2021. The stock is up more than 33% year-to-date.
4. Gaming (Activision blizzard):
Activision Blizzard, which produces massively popular video games, such as Call of Duty, raised its earnings outlook for the year due to strong trends in various titles and more people engaged in playing video games as they stay home during the Covid-19 crisis, Reese said. Activision sales were up 21% year over year in the most recent quarter, while the stock is up 26% year-to-date.