10 Post-Pandemic Stocks To Add to Your Portfolio
The stay-at-home orders triggered by the global coronavirus pandemic wreaked havoc on ordinary life, and it also hurt numerous businesses. With the introduction of the COVID vaccines, however, case counts are declining rapidly and economies are reopening. Certain companies that suffered greatly during the pandemic are likely to bounce back strongly as consumers are once again able to visit stores and resume normal spending patterns. Here's a look at 10 stocks you might consider adding to your portfolio if you're betting on a strong rebound in the economy. As always, check with your financial advisor to see if any of these stocks match your investment objectives and risk tolerance.
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Last updated: June 22, 2021
Airbnb (ABNB)
Stock price as of June 18, 2021: $152.52
Airbnb is one of many lodging stocks that might get a bounce over the coming years as people begin to travel again. Airbnb might be of particular interest as many of its hosts rent out their own homes on the platform, something they simply couldn't do during the pandemic. Now that restrictions are easing, there's likely to be much more commerce on the website, and the stock might trend upwards as a result. The stock currently trades about 30% below its 52-week high of $219.94.
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Square (SQ)
Stock price as of June 18, 2021: $237.05
Square's business model is fairly simple. The payment processor earns money from every in-person swipe of a credit or debit card. As businesses open up and consumers begin to physically visit stores again, Square should benefit from the increase in face-to-face transactions. Although the stock currently trades about 16% below its 52-week high, as a darling of Wall Street, it trades at a lofty P/E multiple of 332x earnings. Expect some volatility if you're a backer of Square stock.
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Visa (V)
Stock price as of June 18, 2021: $230.41
If you believe that the reopening economy will result in more credit and debit card transactions, Visa should be in your list of names to consider. Although high-tech upstarts like Square are taking dead aim at the traditional card networks, Visa is still the 800-pound gorilla in the industry. The company remains the largest payment processing network in the world, posting $2.423 trillion in total payment volume just in its most recent quarter, ending March 30, 2021. As transactions increase, the number -- and the company's quarterly profits -- are likely to rise.
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Coca-Cola (KO)
Stock price as of June 18, 2021: $53.77
If you're looking for a sturdy blue-chip stock to put in your post-pandemic portfolio, consider Coca-Cola. The company took a big hit in 2020, as many of the outlets for its products, from sports stadiums and cinemas to restaurants and bars, closed down during the outbreak. Earnings in 2021 will therefore have easy comps to the numbers posted in 2020, especially since consumers are likely to return in droves to those types of venues. While you're waiting for earnings to kick in, the company will pay you a hefty dividend of over 3% for holding the stock. In addition to the dividend, analysts expect to see the shares trading at $60.45 one year from now, about 12% above current levels.
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Southwest Airlines (LUV)
Stock price as of June 18, 2021: $55.19
Airlines are always a bit of a risky play, as so many factors that influence earnings -- from fuel to labor to seasonal demand -- can be volatile. However, it's clear that Americans are eager to travel, as passenger counts from the TSA are already beginning to approach pre-pandemic levels. As leisure and domestic travel is likely to pick up more rapidly than international and business travel, Southwest Airlines seems particularly well-positioned to benefit from these increasing passenger numbers.
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Marriott (MAR)
Stock price as of June 18, 2021: $138.83
Marriott International is another play on a global explosion of travel as the coronavirus recedes. The hotel company, whose brands include JW Marriott, Ritz-Carlton, St. Regis, Courtyard and Residence Inn, began showing revenue improvement in 2021's Q1, and Bank of America analyst Shaun Kelley thinks there's still room to grow. The analyst has a $160 price target on the stock, about 15% above current levels.
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Disney (DIS)
Stock price as of June 18, 2021: $172.42
The Walt Disney Company got hit on all sides from the effects of the coronavirus pandemic. The company's primary industry sectors -- film and media entertainment, theme parks and cruise ships -- were all more or less shut down for months during the peak of the crisis. Although the company's theme parks are mostly operating at full capacity, its film and cruise line divisions are still just beginning to ramp up. Once the company is firing on all cylinders, its profit engine should re-engage and the stock price may benefit.
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Wynn Resorts (WYNN)
Stock price as of Jun. 18, 2021: $124.44
Wynn Resorts was hit particularly hard at the onset of the coronavirus, with its first-quarter revenue in 2020 plunging by 42%. As a result, the company was forced to suspend its hefty 5% dividend, which helped crater the stock by more than 50%. Although the company is holding off on resuming its dividend payments, it's already begun to benefit from the global reopening. Although most Americans are likely more familiar with the casino company's Las Vegas operations, Wynn Resorts actually gets most of its revenue -- about 70% as of 2019 -- from Macau. Analysts have an average $143.83 price target on the stock, about 15% above current levels.
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Expedia Group (EXPE)
Stock price as of June 18, 2021: $162.93
Expedia, like most travel-related companies, suffered mightily in the first half of 2020, with its stock falling over 50%. However, bullish investors ended up rallying the stock 22% by the end of the year, anticipating a recovery in 2021 and beyond. While the company still posted a loss in the first quarter of 2021, analysts and investors alike have a rosy outlook for the stock going forward. Analysts have a consensus 12-month price target about 17% above current levels.
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Brinker International (EAT)
Stock price as of June 18, 2021: $55.51
With the possible exception of the travel and leisure sector, the restaurant industry suffered the most economically from the coronavirus pandemic. Although some restaurants managed to limp along thanks to takeout orders, many shut down entirely for months. Now that these establishments are flinging their doors open once again, popular restaurant companies might be a good bet. Casual restaurant chain owner Brinker International is better known for its two flagship chains, Maggiano's Little Italy and Chili's. Analysts have a rosy outlook for the company's stock over the next 12 months, with a consensus "strong buy" rating and an average price target about 38% above current levels, at $76.40.
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