The US stock market is hovering at all-time highs and there’s reason to believe it can go higher. New stimulus money is flooding the system and we’re inching closer and closer to mass reopening around the country.
So if you have money sitting on the sidelines, now may be a great time to load up on new stocks — so long as you hold since volatility should still be expected. Here’s a few in particular that could benefit once the pandemic is in the rear-view mirror.
This isn’t a company, but instead, it is a Sports Betting & iGaming ETF. The entire gambling industry — especially online-based operators that were offering the best sportsbooks sign-up bonuses during the pandemic — thrived over the past few months since entertainment options were short elsewhere.
For bettors that began wagering online during the pandemic, those habits are hard formed now and should continue on. But there’s also pent-up demand from many players to head back to a land-based casino and interact in-person with like-minded bettors. Either way, the entire gambling marketplace is primed for a big 2021 (and onward, too).
Inside the ETF are a host of companies that operate within the sector. The top holding includes the Kindred Group, but other companies also inside are Ballys, MGM, Penn National, and a bunch more. What’s great about investing in an ETF instead of a single company is it’s much more risk-free and essentially, you’re betting the whole sector goes up and not just a single company.
When the pandemic broke out last March, Disney was one of the hardest-hit companies. Its top two sources of revenue — theme parks and movie theaters — were sliced dramatically due to stay-at-home orders. But as good companies routinely do, they used a crisis to pivot into a new, more lucrative direction.
For Disney, that meant going “all in” on streaming. It’s primary Disney+ service has now eclipsed 100 million subscribers — a whopping number considering it was only launched 16 months ago. Pair this success, alongside ESPN+ and Hulu, and Disney estimates its paid subscription base will reach around 250 million by 2024.
Streaming will undoubtedly become Disney’s primary revenue channel, but its theme park business isn’t left for dead either. Like casinos, there are many consumers dying to get back to Disney World and Disneyland once things normalize. That means Disney will be boosting profits both from the physical world (parks) and digital (streaming).
The same thing we said about casinos and theme parks also applies to travel — the demand for it will be astronomical coming out of the pandemic. And not only is there a demand, but there’s purchasing power to do it. By most accounts, most Americans actually saved more money this past year thanks to stimulus packages and staying at home. With a hole burning through consumer’s pockets, we think expensive travel (e.g. international) will flourish.
Expedia’s stock has already ripped in anticipation of this as it’s now trading at all-time highs and three times its March 2020 low. Regardless, the runway for growth remains long since travel is only just restarting and won’t reach pre-pandemic peaks for months down the line.
“The Everything Store” was already an eCommerce giant before the pandemic. Now? They’re a complete retail behemoth. Unfortunately, a lot of small businesses did not or will not survive this pandemic. Naturally, another company will take their market share and one has to believe Amazon is a front-runner to do just that in most categories.
Honestly, Amazon is a stock you want in your portfolio, pandemic or not. Few companies outdo them in terms of innovation, which is the ultimate growth generator.
While not officially public yet, Talkspace is using a special acquisition company (SPAC) to become listed on the market. The deal is expected to wrap up in the second fiscal quarter. When it does, watch out!
Talkspace operates in the mental health space, offering online services to consumers and businesses alike. Due to the job losses and deaths associated with the pandemic, mental health could become another societal byproduct. If so, Talkspace is primed to fill that void with its products.