Buy these 15 stocks that are shielded from COVID-19 fallout and primed to beat the market even as virus cases spike, Evercore says

  • The recent spike of coronavirus cases in some states is stoking concern among investors that the economy will sustain longer-term damage. 
  • Accordingly, Evercore ISI has compiled a list of stocks to buy that are shielded from the pandemic fallout and primed to beat the market.
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Several states have seen spikes in COVID-19 cases in recent weeks, raising uncertainty for investors amid fears that the economy will sustain longer-term damage. 

Atlanta Fed President Raphael Bostic this week told the Financial Times that, "there are a couple of things that we are seeing and some of them are troubling and might suggest that the trajectory of this recovery is going to be a bit bumpier than it might otherwise."

While many firms stand to lose from a coronavirus resurgence, other companies are better positioned to withstand the outbreak. 

Accordingly, Evercore ISI has put together a list of the top 15 stocks to buy that are shielded from the fallout of COVID-19 and primed to beat the market even as coronavirus cases continue to spike and people remain quarantined for longer.

They also created a basket of stocks they predict will perform well if COVID-19 cases dwindle and clear the way for an economic recovery. As US coronavirus cases surged in recent days, the basket of "quarantine" stocks has outperformed its counterpart filled with the companies best positioned for a recovery. 

"After a period of 'Quarantine' outperformance while COVID-19 risks increased in late February and early March, the Recovery portfolio rebounded, but recently the Quarantine portfolio has resumed leadership," said Dennis DeBusschere, the head of Evercore's portfolio strategy research team, in a recent note,

So, if COVID-19 cases do continue to grow, what are the top stocks positioned to weather the economic effects? Listed below in order of their price returns year-to-date are 15 stocks DeBusschere recommends buying if quarantine measures remain in place. 

15. Kroger

Ticker: KR

Sector: Food and Staples Retailing

Year-to-date performance: 24.72%

Source: Evercore ISI

14. Cabot Oil & Gas

Ticker: COG

Sector: Oil, Gas & Consumable Fuels

Year-to-date performance: 25.90%

Source: Ever clear ISI

13. SelectQuote

Ticker: SLQT

Sector: Insurance

Year-to-date performance: 26.85%

Source: Evercore ISI

12. Lululemon Athletica

Ticker: LULU

Sector: Textiles, Apparel & Luxury Goods

Year-to-date performance: 27.31

Source: Evercore ISI

11. The New York Times

Ticker: NYT

Sector: Media

Year-to-date performance: 30.62%

Source: Evercore ISI

10. ASML Holding

Ticker: ASML

Sector: Semiconductors

Year-to-date performance: 32.98%

Source: Evercore ISI

9. Netflix

Ticker: NFLX

Sector: Entertainment

Year-to-date performance: 38.19%

Source: Evercore ISI

8. Amazon

Ticker: AMZN

Sector: Internet and Direct Marketing Retail

Year-to-date performance: 43.89%

Source: Evercore ISI

 

7. PayPal

Ticker: PYPL

Sector: IT Services

Year-to-date performance: 55.60%

Source: Evercore ISI

6. Nvidia

Ticker: NVDA

Sector: Semiconductors

Year-to-date performance: 62.62%

Source: Evercore ISI

5. Peloton Interactive

Ticker: PTON

Sector: Leisure Products

Year-to-date performance: 82.82%

Source: Evercore ISI

 

4. Regeneron Pharmaceuticals

Ticker: ASML

Sector: Semiconductors

Year-to-date performance: 32.98%

Source: Evercore ISI

3. Spotify

Ticker: SPOT

Sector: Entertainment

Year-to-date performance: 92.14%

Source: Evercore ISI

2. Cloudflare

Ticker: NET

Sector: Software

Year-to-date performance: 104.2%

Source: Evercore ISI

1. DocuSign

Ticker: DOCU

Sector: Software

Year-to-date performance: 143.27%

Source: Evercore ISI

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