Since the recent discovery of vaccines that could potentially eradicate the pandemic, markets have been looking hopeful. Investors have been growing more optimistic when trades reopened. Positive news on COVID-19 vaccine progress has sparked a massive rally on Wall Street this month, with both the Dow Jones Industrial Average and S&P 500 notching a series of new record highs in recent days. Now the trend is shifting towards the back to normal trade and the hunt for what stocks stand to benefit the most is on.
Jim Cramer, the host of CNBC’s Mad Money names a list of “return to normalcy’ stocks to buy on vaccine optimism. These are the stocks that may seem bearish now and are recommended to snap up while it’s cheap or fairly priced as these stocks are well on their way to recovery.
Here’s the list of stocks he presented during the show:
“I think you have to buy a couple of these vaccine winners on any weakness, although when it comes to retail, I just say buy some, period, because there’s no time to wait for a dip,” the “Mad Money” host said. “No matter what, I’d pick two or three of these names, then wait for the next piece of bad news that freaks people out so you can buy them into weakness,” Cramer continued.
These comments came after AstraZeneca, in collaboration with the University of Oxford claimed that their COVID-19 vaccine candidate was up to 90% effective at preventing contraction of the virus that has caused more than 200,000 deaths in the U.S. Astrazeneca owns the third vaccine candidate to show high levels of efficacy, following those from Moderna (NASDAQ:MRNA) and the Pfizer (NYSE:PFE) and BioNTech (NASDAQ:BNTX) team earlier this month.
Additionally, Chris Wood, the global head (equity strategy) at Jefferies, commenting on his ‘back to normal’ trade now suggests owning energy stocks. “The other obvious area to own for those who want to make money in the post-Covid ‘back to normal’ trade is energy stocks,” Chris Wood said. “The history of energy transitions is that they take a long time and, in this case, the transition is being driven more by government policies than by economic logic even allowing for the increased competitiveness of renewables,” Chris Wood added.