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There are many stocks that have taken a complete bath in 2020 thanks to the pandemic. Almost every sector of the stock market took a blow as investors tried to grapple with a historic, global pandemic that had the potential to rock the world economies into a tailspin.
Fortunately, some of the worst economic forecasts have not come true, but many companies – and their stock prices – have still faltered over the past year.
Fortunately, some of these companies are getting back on track in 2021 and have seen their share prices rebound from their pandemic lows.
Not all of the companies listed below are completely out of the woods yet, but their recent advances are certainly remarkable, as is their ability to weather one of the worst-case scenarios for many of their industries.
5 stocks recovering from their pandemic lows
These 5 stocks have been showing signs of strong rebound since their pandemic lows.
- Delta Airlines
- Bank of America
- Walt Disney
Delta Air Lines Inc. (NYSE: DAL)
- Delta Airlines (NYSE: DAL)
- Price: $ 45.38 (as of October 1, 2021)
- Market capitalization: $ 28.939 billion
If one sector was beaten up more than any other … it was the airlines. Lockdowns kept people from leaving their hometowns, let alone flying to distant destinations. And social distancing ensured that being limited to a small room with strangers 30,000 feet off the ground was the last thing people wanted to do.
Because of these unforeseen circumstances, Delta (and all other airlines) have essentially grounded their entire fleet and stored it for months.
The result? Delta’s business has dried up completely. The company lost $ 11 billion in the first two quarters of the year, warning then that a recovery could take two years or more. The company’s stock slumped due to its poor financial performance, and in mid-2020 Delta’s share price was around dropped by an astonishing 52%.
But the company has since bounced back as vaccines rolled out around the world and people started traveling again. For the company’s June quarter, the company had positive free cash flow and was profitable on a pre-tax basis for the month of June.
Delta CEO Ed Bastian told investors that domestic vacation travel has fully recovered to 2019 levels and there are “encouraging signs of improvement in business and international travel.” In fact, the company said it ordered more jets to expand its capacity.
Did all of this result in better performance for Delta’s share price? You can bet on that. The airline’s stock is up 46% over the past 12 months.
Posting balances (Nasdaq: BKNG)
- Postings (NASDAQ: BKNG)
- Price: $ 2,455.87 (as of October 1, 2021)
- Market capitalization: $ 100.838 billion
Booking is a mammoth company that includes some of the world’s most popular travel companies, including Priceline.com, KAYAK, OpenTable, Rentalcars.com and its namesake Booking.com.
Needless to say, the pandemic was not good for all of the company’s business. The company’s CEO, Glenn Fogel, said in early 2020 that the COVID-19 pandemic “is without a doubt the greatest disruption in modern global travel the world has ever seen”.
Of course he was right. In 2020, Booking’s net income decreased 99% and hotel room bookings decreased 58%.
As a result, Booking’s share price suffered a significant slump and lost 23% in the first six months of 2020.
But there are plenty of signs that Booking is in the middle of a rebound and more good news is on the way. In the summer of 2021, the company recorded more hotel stays than in the same period in 2019.
And while Booking is still feeling the effects of the pandemic, Fogel recently said the company had “another quarter of significant sequential improvement” and that revenue in Q3 2021 as a percentage of gross bookings will be the same as Q3 2019.
Okay so people are booking a lot more rooms than in 2020 and Booking’s business is on the mend. But how exactly did that affect the company’s share price?
In the past 12 months, the stock of Booking has gained more than 42%, slightly outperforming the S&P 500’s 28% increase.
AutoZone (NYSE: AZO)
- AutoZone (NYSE: AZO)
- Price: $ 1,672.28 (as of October 1, 2021)
- Market capitalization: $ 35,349bn
AutoZone is a little outlier on this list because that’s actually the company growth during the pandemic.
A mix of bans and social distancing, coupled with a cash inflow from economic controls, spurred some people to buy parts for their cars. This resulted in AutoZone’s fiscal 2020 revenue increasing 6.5% and net income increasing 7%.
So why put AutoZone on this list at all? Because even as the company grew during the pandemic, its share price fizzled out. AutoZone’s stock lost about 5% in the first six months of 2020, which was slightly worse than the S&P 500’s then-performance.
But while AutoZone’s 2020 financials were technically good, it offers an even more significant opportunity after the pandemic.
In case you haven’t noticed, prices for new and used cars are currently skyrocketing thanks to global supply chain issues, particularly with semiconductors. The lack of inventory for cars will likely keep people clinging to their older cars longer and could help AutoZone’s sales grow.
Investors are starting to get this idea, and AutoZone stock is up 41% in the past 12 months. And the company could grow even more.
In its most recent quarterly earnings conference call, AutoZone CEO William Rhodes said management was “encouraged by the current sales environment” and that the company “ended the fiscal year with strong fundamentals in our business.”
Those strong fundamentals include total sales, which grew nearly 16% in fiscal 2021, as well as a very impressive 25% increase in net income.
While the pandemic is still causing a lot of uncertainty in some sectors, it is crystal clear that AutoZone has tapped into rising demand for auto parts and that current new vehicle inventory restrictions should keep the company’s business going well if the economy continues.
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Bank of America Corporation (NYSE: BAC)
- Bank of America (NYSE: BAC)
- Price: $ 43.08 (as of October 1, 2021)
- Market capitalization: $ 362,514billion
Banks can be riskier stocks during tough economic times because their business is based on people and companies borrowing money. When a recession sets in, borrowing slows and banks typically lose business.
When investors realized that the effects of the pandemic would wreak havoc on recession in the US and many other countries, some of them fled Bank of America stock. As a result, the company’s share price plummeted 33% in the first half of 2020.
But Bank of America weathered the year relatively well, with net income of $ 17.9 billion in 2020. And the company seems to be back on track for the most part as the US economy moves away from its slowdown Has recovered significantly in 2020.
This is all great news for Bank of America, and the company is already seeing the benefits of the turnaround.
In the second quarter of 2021, Brian Moynihan, CEO of Bank of America said, “Consumer spending has significantly exceeded pre-pandemic levels, deposit growth is strong and credit levels have started to rise.”
While some of Bank of America’s financials have not fully recovered (sales declined 4% year over year in the second quarter), the company is still on track to continue benefiting from a strong economic rebound.
And that drove investors back to Bank of America, which has resulted in a staggering 77% gain over the past 12 months.
Walt Disney Co. (NYSE: DIS)
- Walt Disney (NYSE: DIS)
- Price: $ 176.01 (As of October 1, 2021)
- Market capitalization: $ 319,832 billion
Disney stock has been in a doldrums for most of 2020, and it’s no surprise why: Disney had to stop producing its TV shows and movies during the height of the pandemic, closing its theme parks, and keeping its cruise lines in port.
The result was a 45% decrease in Disney’s operating profit for fiscal 2020.
But former CEO Bob Iger said on the company’s second quarter 2020 conference call, “The Walt Disney Company has proven time and again in its nearly 100-year history to be exceptionally resilient, and I believe this time around it will be no different . ”
And he was right. While Disney stock fell 23% in the first six months of 2020, it’s made a huge comeback recently, rising nearly 40% in the last 12 months.
While Disney suffered a major setback for almost all of its businesses last year, the company’s streaming service Disney + was the only bright spot. The service now has 116 million subscribers less than two years after it was launched.
With all Disney theme parks open now, it’s going to be a massive 18 month 50NS– Walt Disney World Anniversary Celebration underway and most of its cruise lines back at sea, Disney is clearly on track for a major rebound after the pandemic.