4 COVID-19 Stocks for the ‘Second Wave’

  • Free: The Top 5G Stocks To Buy Now
  • You might be asking yourself, “what is a COVID-19 stock?” While there isn’t a standard definition, it is generally a company that may benefit in terms of earnings or price performance by an increase in cases, hospitalizations, policies, closures, etc. Basically, it’s any company that may benefit in any way from the virus. The probably seems pretty broad and that’s because it is.

  • Special: How You Could Lock in a 1,110% Return on THIS Stock in Just 24 Hours
  • There’s been periodic rotation between COVID-19 stocks. Early on, it was vaccine biotech companies that were moving. Then it began to flow a little more downstream to companies supplying hospitals or doing testing, then flowed to companies that were benefiting by shelter-in-place and working from home. Recently vaccine stocks began to pick up and now it appears to be moving back to the supply and testing companies.

    Whether or not you agree that there is a “second wave” or not isn’t really material. The potential for a second wave is being sold pretty hard and investors are likely to respond.

    Here are a couple of our recent posts on COVID-19 stocks.

    3 Cloud Security Companies Securing a Remote Workforce in a Post COVID-19 World

  • Special: Ready to Make a 9-to-5 Income Trading Just a Few Hours Per Day?
  • 5 Ecommerce Companies that Have Thrived Amidst COVID-19 Closures

    The focus of this article is on four companies that manufacture hospital beds, IV bags, do COVID-19 testing and make equipment that help with respiratory issues.

    Second Wave Stock #1: Vapotherm Inc (NYSE: VAPO)

    You might be asking yourself, “what is a COVID-19 stock?” While there isn’t a standard definition, it is generally a company that may benefit in terms of earnings or price performance by an increase in cases, hospitalizations, policies, closures, etc. Basically, it’s any company that may benefit in any way from the virus. The probably seems pretty broad and that’s because it is.

    There’s been periodic rotation between COVID-19 stocks. Early on, it was vaccine biotech companies that were moving. Then it began to flow a little more downstream to companies supplying hospitals or doing testing, then flowed to companies that were benefiting by shelter-in-place and working from home. Recently vaccine stocks began to pick up and now it appears to be moving back to the supply and testing companies.

    Whether or not you agree that there is a “second wave” or not isn’t really material. The potential for a second wave is being sold pretty hard and investors are likely to respond.

    Here are a couple of our recent posts on COVID-19 stocks.

    3 Cloud Security Companies Securing a Remote Workforce in a Post COVID-19 World

    5 Ecommerce Companies that Have Thrived Amidst COVID-19 Closures

    The focus of this article is on four companies that manufacture hospital beds, IV bags, do COVID-19 testing and make equipment that help with respiratory issues.

    Second Wave Stock #1: Vapotherm Inc (NYSE: VAPO)

    Vapotherm is a global medical technology company that makes a Hi-VNI nasal cannula and other products that assist people in respiratory distress. The company just announced a major expansion in their manufacturing capabilities of their Precision Flow systems. The expansion will allow them to increase their production over 20 times their pre-COVID-19 levels and is in response to an expected increase in demand.

    VAPO has been in an uptrend since early March and made an attempt to breakout above $40.50 on Tuesday. That level aligns with the 261.8% fib projection of the initial wave of the trend on March 12 to March 17. A break of this resistance level would indicate a potential move to the 423.6% projection near $60.

    Second Wave Stock #2: Quest Diagnostics Inc (NYSE: DGX)

    Quest is a diagnostic information services company that is heavily involved in diagnostic testing and antibody testing for COVID-19. At the end of May, the company received emergency approval by the EUA and the FDA for their Quest Diagnostics Self-Collection Kit for COVID-19. This allows people to collect a specimen at home or in a healthcare setting that can be tested. On April 28, 2020, the company announced that they were allowing individuals to purchase antibody testing kits without a prescription from the doctor. The company is currently planning to ramp up their testing capabilities to 150,000 a day.

    The share price of DGX had a huge rally in April but has been trading in a range between $105 and $125. The near-term potential is a retest of $125, with a breakout above that level providing a target of $145.

    Second Wave Stock #3: Baxter International Inc (NYSE: BAX)

    Baxter manufactures hospital and renal products. Their hospital segments manufacture intravenous (IV) solutions and other premixed drugs and drug-reconstitution systems, pre-filled vials and syringes. The company received emergency approval for their Oxiris blood purification filter for COVID-19 treatment on April 23. The filter is used to treat COVID-19 patients admitted to the ICU with confirmed or imminent respiratory failure. In some circumstances, COVID patients can develop acute kidney injury (AKI) as a result of cytokine storms and it is expected that Oxiris can help limit the effects.

    After making a bullish run in late March and April. The price failed to break its $95 resistance and has been pulling back. The price is currently bouncing off of the 50% retracement of that uptrend. The expectation is for the price to retest $95.

    Second Wave Stock #4: Hill-Rom Holdings, Inc (NYSE: HRC)

    Hill-Rom is a global medical technology company that partners with healthcare providers in many different care settings. In their patient support segment, the company sells and rents bed frames and surfaces. They also sell and rent respiratory care products.

    HRC broke out on high volume this past week as it rallied off of its $95 support area. The near-term potential is to retest its $118 resistance.

  • Special: Former Chicago Exchange Trader Blows the Whistle on Wall Street