<p>The fear of coronavirus from China has become apparent. The latest figures say that more than 10,000 have been infected in the United States, and more than 150 have now died.
And according to the US government, we could see that the pandemic lasted for up to 18 months or longer and “included several waves of disease”, as stated by CNN contributor Christina Maxouris. Hospitals also sound the alarm in case of lack of deliveries and the outbreak shows no signs of slowing down.
To limit the spread, “social distancing” is recommended.
“Social distancing will affect industries where physical presence with the customer is crucial. However, many industries will be able to adapt to it, provided the infrastructure is ready. The necessary infrastructure is broadband capacity for live broadcasts on a much larger scale than now and delivery capacity for consumer-friendly companies, says Dr. Aleksandar “Sasha” Tomic, Deputy Dean of Strategy, Innovation and Technology at Boston College Woods College of Advancing Studies, in an email to InvestorPlace.
“All adjustments will take time and benefit large companies as they can throw in the resources necessary to scale the remote operations (eg transmission and / or delivery). So in the short term there will be a lot of disruptions, which will be leveled out in the medium and long term, “he added.
For investors, let’s take a look at three of the best “social distancing” stocks that are already moving.
Social Distancing Stock: Zoom Video Communications (ZM)
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Zoom video communications (NASDAQ: ZM) has been one of the most explosive of the social distancing stocks. Since February, stocks have risen from $ 70.32 to well over $ 130. As people download to the company’s app to gather virtually.
Download numbers have been up not only for Zoom, but for many of its peers around the world.
Analysts are equally impressed. Needham analyst Richard Valera, for example, initiated a buy rating on the stock with a target price of $ 140.
“We believe that Zoom’s exceptionally easy-to-use meeting product has enabled and benefited from a long-term secular shift toward working from home,” the analyst wrote. “We believe that Covid-19 is driving a lasting acceleration of this shift. In the short term, our controls confirm significant increases in business activity, especially in Covid hotspots, which could certainly be mitigated by delays in closing major business agreements. ”
Activision Blizzard (ATVI)
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Shares in Activision Blizzard (NASDAQ: ATVI) gain momentum as a socially distancing stock. In recent days, the shares in the gaming stock have gone from $ 50.51 to $ 57.50 before retreating a bit today. It’s not hard to see why. Because people get stuck at home, video games can offer a cheaper form of entertainment. And its many multiplayer games give people an outlet with their friends.
In fact, analysts say ATVI will gain traction from distancing and cocooning, as noted by Investor’s Business Daily contributor Patrick Seitz.
“Video games can benefit from long-term cocooning,” said Baird analyst Colin Sebastian. “Interactive entertainment can be countercyclical, as a relatively inexpensive form of entertainment versus activities such as travel, restaurants and movies.”
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Virus or no virus, we must eat.
It is driving interest in shares in Grubhub (NYSE: GRUB) right now thanks to its ability to deliver food to millions. After all, it is easiest to practice social distancing if you can complete almost the entire transaction for your meal from miles apart.
In fact, new restrictions that restrict certain restaurants to bring and deliver can be a major revenue driver for the company.
Better yet, Grubhub is one of four major shipping companies in the United States and the only pure game. After retreating in recent days, the stock has begun to recover at a price north of 36 dollars.
Ian Cooper, an InvestorPlace.com contributor, has been analyzing shares and options for web-based advisory services since 1999. At the time of writing, Ian Cooper had no position in any of the above securities.