Top 5 Stocks to Buy During Market Recovery: A Comprehensive Guide
The global economic landscape is gradually recovering from the challenges posed by the pandemic. As businesses and economies begin to bounce back, investors are looking for opportune stocks to invest in. Here, we explore a selection of stock recommendations from a variety of industries that could provide solid returns during the market recovery phase.
The Market Landscape
The market has shown signs of recovery, with some sectors showing significant improvements. This article highlights a few stocks that are praised for their potential during this recovery period. We've listed them along with key market insights and analyst opinions.
Recommended Stocks for Market Recovery
Anheuser-Busch InBev
Name: Anheuser-Busch InBev (BUD)
Market Value: $123.1 billion
Dividend Yield: 2.3%
Analyst Opinion: 6 Strong Buys, 0 Buys, 5 Holds, 0 Sells, 0 Strong Sells
Although Anheuser-Busch InBev, the world's largest beverage company, saw a significant drop in sales from bars, restaurants, sporting events, and other drinking scenarios away from home, the analysts predict a gradual return to normalcy. Despite year-over-year comparisons becoming increasingly easier, investors are seeing positive signs. The company's brands such as Budweiser and Bud Light have maintained a strong market position, contributing to its resilience.
Southwest Airlines
Name: Southwest Airlines (LUV)
Market Value: $34.5 billion
Dividend Yield: N/A
Analyst Opinion: 11 Strong Buys, 4 Buys, 4 Holds, 2 Sells, 0 Strong Sells
The market is already pricing in significant potential for Southwest Airlines, as the airline industry begins to see strong gains. Shares in Southwest Airlines have risen 25% year-to-date compared to less than 5% for the SP 500. Analysts believe the share price can continue to rise even as a full recovery in air traffic to pre-pandemic levels remains years away. Despite the continuation of depressed air travel demand in 2020, Southwest Airlines showcased impressive resilience.
Archer Daniel Midland
Name: Archer Daniel Midland (ADM)
Market Value: $32.7 billion
Dividend Yield: 2.5%
Analyst Opinion: 7 Strong Buys, 3 Buys, 3 Holds, 1 Sell, 0 Strong Sells
Although increased demand for comfort foods, snacks, and packaged foods has helped Archer Daniel Midland navigate the pandemic well, the global food ingredients giant faces several catalysts amidst the return to normalcy. Closure of restaurants, bars, sporting events, and other public venues hurt sales of products in food services businesses. Shelter-in-place restrictions in Europe took a toll on its overseas biodiesel business, while a decline in gas demand in the U.S. forced a temporary shutdown in ethanol production.
Walt Disney
Name: Walt Disney (DIS)
Market Value: $358.3 billion
Dividend Yield: N/A
Analyst Opinion: 15 Strong Buys, 6 Buys, 5 Holds, 1 Sell, 0 Strong Sells
The pandemic took a significant bite out of some of Disney's most critical divisions, particularly its theme parks and studios. However, analysts predict a significant bounce-back as streaming media services make a comeback. Although it's positive news that Disneyland and other California amusement parks are allowed to re-open with limited capacity, it's not the full extent of Disney's recovery. The company's strong hold in the streaming media market can provide substantial growth opportunities.
Wyndham Hotels Resorts
Name: Wyndham Hotels Resorts (WH)
Market Value: $6.4 billion
Dividend Yield: 0.9%
Analyst Opinion: 8 Strong Buys, 2 Buys, 1 Hold, 0 Sells, 0 Strong Sells
Not all hotels are the same. Wyndham Hotels Resorts, with brands like La Quinta, Ramada, Super 8, and Travelodge, stands to benefit disproportionately from the return of mass-market business and leisure travel. Analysts view Wyndham as a potential comeback play in the lodging industry. Despite revenue per available room (RevPAR) continuing to decline, Wyndham's leisure exposure and drive-to destinations benefit the company, leading to better results compared to its peer set.
Conclusion
As the market continues to recover, these five stocks present promising investment opportunities. As of the latest analyst insights and historical trends, these companies have demonstrated robust potential for growth. However, investors should always perform their own due diligence and consider their individual financial situations before making investment decisions.
Key Takeaways
Choose stocks based on market conditions and historical performance. Consider dividend yields for stable income. Monitor analyst opinions and industry trends. Be prepared for potential market fluctuations.Invest wisely and stay informed during the recovery phase of the market.