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3 Stocks Unscathed By The Coronavirus Outbreak

By Investing.com (Jesse Cohen/Investing.com)Stock MarketsFeb 26, 2020 12:42PM ET
www.thechinesenews.net/analysis/3-stocks-unscathed-by-the-coronavirus-outbreak-200510740
3 Stocks Unscathed By The Coronavirus Outbreak
By Investing.com (Jesse Cohen/Investing.com)   |  Feb 26, 2020 12:42PM ET
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Wall Street’s major indices plunged this week as the coronavirus spread around the world and fears about its impact escalated. In recent days, the number of confirmed cases and deaths rose dramatically in Italy, South Korea, Iran and other countries outside of China.

Due to the uncertain economic implications, investors have offloaded risky assets. Both the Dow and S&P 500 suffered their biggest four-day percentage losses since the massive sell-off in December 2018. These declines put both benchmarks about 8% below their record highs reached earlier this month.

DJI Daily Chart
DJI Daily Chart

While it will be difficult for most companies to insulate themselves from the effects of the fast-spreading disease, three names are likely to be among the few unscathed by the full-blown global outbreak of the coronavirus.

1. Zoom Video Communications

Zoom Video Communications (NASDAQ:ZM), headquartered in San Jose, California, provides remote conferencing services using cloud computing. It is widely considered the leader in modern enterprise video communications, with an easy, reliable cloud platform for video and audio conferencing, online meetings, chat and webinars.

The company has seen its shares surge almost 41% since news of the coronavirus outbreak sent shockwaves across financial markets on Jan. 21, compared to the S&P 500’s 6% drop over the same time period. The stock, which has rallied 57% year-to-date, soared to a fresh all-time high of $111.80 on Tuesday, before closing at $107.08 with a market cap of $29 billion.

ZM Daily Chart
ZM Daily Chart

As the reach of the virus expands, companies worldwide will likely need employees to work from home, thus creating new demand for remote-work tools.

The remote conferencing services provider next reports earnings after the U.S. market closes on Mar. 4. Consensus calls for earnings per share of $0.07 for the fourth quarter, while revenue is forecast to jump 66% from the year-ago period to $176.5 million.

2. Netflix

Netflix (NASDAQ:NFLX) is the second name to consider buying as fears surrounding the outbreak grow. While the company doesn’t have any operations in China, the increasing impact on the U.S. could lift demand for the media-services provider.

Since Jan. 21, Netflix’s stock has gained 6% and is up more than 11% YTD. Shares, which hit a 52-week high of $392.95 on Feb. 19, settled at $360.09 yesterday with a market cap of $158.1 billion.

NFLX Daily Chart
NFLX Daily Chart

The Centers for Disease Control and Prevention stepped up its call for the U.S. public to start preparing for a possible outbreak at home on Tuesday. The CDC's Dr. Nancy Messonnier stated that “we are asking the American public to work with us to prepare in the expectation that this could be bad.” The CDC has so far confirmed 53 cases in the U.S.

The sweeping effects of COVID-19 could result in more people staying home and turning to Netflix for entertainment.

The streaming company already reported strong quarterly earnings last month that saw its total subscriber base grow to 167 million.

3. TAL Education Group

Tomorrow Advancing Life Education Group (NYSE:TAL) is the final name that should be on your radar as it provides online tutoring services for primary and secondary school students in China.

While local governments in China delay the re-opening of schools to limit the spread of the coronavirus, parents across many quarantined cities are taking advantage of online education for their children. Some provinces and schools have also requested that children tune into online courses during this time.

Shares of TAL Education Group are up around 5% since Jan. 21. YTD. The stock, which ended at $56.58 last night, has gained nearly 18% in 2020 and reached a record-high of $59.76 on Feb. 14. TAL has a valuation of $34 billion.

TAL Daily Chart
TAL Daily Chart

The education and technology enterprise offers tutoring services to kindergarten through 12th-grade students, covering core academic subjects, such as math, physics and English. Since its establishment, TAL has been committed to integrating the internet and technology into education to deliver a better study experience for children.

The company beat revenue expectations last month and total student enrollments increased by 66% y/y to more than 2.3 million in the quarter ended Nov. 30.

3 Stocks Unscathed By The Coronavirus Outbreak
 
3 Stocks Unscathed By The Coronavirus Outbreak

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Comments (13)
Ronda Zelman
Ronda Zelman Feb 29, 2020 5:46PM ET
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I have seen a bunch of companies (absolutely not related to China) sold by institutional investors like they are disease itself. 6-7% per day. People are scared by the media to the degree that the common sense is not there. Wait for the up-stick confirmation with a follow-through day of gains, and only then add to your positions. It was very painful to see how your gains have evaporated and losses accumulated. If you have dividend stocks in your portfolio, you should hold them, as the dividends will be higher to offset losses.
Hadi Altaff
Hadi Altaff Feb 29, 2020 10:58AM ET
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What next will it be again the same like last week
Jan Skilbrei
Jan Skilbrei Feb 29, 2020 12:07AM ET
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hi folks, when these people write its always 3-6 days late (for  trader), because they write after confrmations, notice he not wrote 3-4 days ago, he looks up on charts. Use these writers for a possible contrarian view, that is soon to  buy quality stocks that is oversold due to panic, but careful, wait until uptrend is conformed, or a bottom is formed. (they , writers/journalists push brokers also, when  writing bout Tesla uptrend when it is close to 900 $ : )  not 1,2, 3 months earlier : )
David Knight
David Knight Feb 27, 2020 9:23AM ET
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this guys going to get his *****handed to him. dont buy leveraged growth stocks when people are running for defense.inexperienced trader with a passion for writing.
Dor Sarfati
Dor Sarfati Feb 26, 2020 10:58PM ET
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check out AUDC, a VOIP company
boston smith
boston smith Feb 26, 2020 3:11PM ET
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People the article didnt say these are the ONLY companies not tied to China..... Think for urself a little bit come on now.
Insert name here
Insert name here Feb 26, 2020 12:47PM ET
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what's a good stock to invest in right now? I'm a beginner and I'm doing a simulation for a project for an economy class. I have 100k in simulated USD. Any tips and tricks are also appreciated
Given Mokwena
Given Mokwena Feb 26, 2020 12:42PM ET
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Is really a problem...We should pray harder for this matter of coronavirus outbrea...
Erlee Del Orbe
Erlee Del Orbe Feb 26, 2020 12:42PM ET
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Checked a few sites, and goverment orgs and none of them list prayer as a possible cure or deterrent. May have to rely vaccines.
Erlee Del Orbe
Erlee Del Orbe Feb 26, 2020 12:42PM ET
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Or other conventional means :-/
Matt Novakovich
Matt Novakovich Feb 26, 2020 12:35PM ET
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what about Costco and Roku and Tesla? he just looked up 3 stocks that weren't in the red lol
boston smith
boston smith Feb 26, 2020 12:35PM ET
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Costco has a warehouse in China and Tesla produces in China. and i would think ROKU has pretty big ties to china, not sure tho. If ur gonna talk ****atleast have u facts straight because all u have to do is google to see if ur correct or not.
James Atkins
James Atkins Feb 26, 2020 12:16PM ET
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What about TDOC?
hesham naser
hesham naser Feb 26, 2020 12:08PM ET
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REGN, GSX same reason as TAL.
Trevor Ribbans
Trevor Ribbans Feb 26, 2020 12:01PM ET
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Dont forget clorox!
Jose Emenis
Jose Emenis Feb 26, 2020 9:40AM ET
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Trump and Kudlow said the coronavirus crisis is over....
Cultrix Clement
Cultrix Feb 26, 2020 9:40AM ET
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When?👀
Jose Emenis
Jose Emenis Feb 26, 2020 9:40AM ET
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Cultrix Clement - Yesterday....
Holly Sorensen
Holly Sorensen Feb 26, 2020 9:40AM ET
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trump is a liar and completely incompetent which is exactly what putin wants for US
Holly Sorensen
Holly Sorensen Feb 26, 2020 9:40AM ET
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pray 45 gets the virus soon
A B
A B Feb 26, 2020 9:40AM ET
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Holly Sorensen My dog is missing. Obviously Putin stole her.
 
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