One thing that COVID-19 has done is expose industries that were not viable if a pandemic were to hit, but it has also shown which industries are up and coming or booming. Some industries, like manufacturing where manual labor is still heavily relied on, traditional brick and mortar retail, traditional banking, and real estate have certainly been hit hard. But for those industries where high-tech is involved, investors are seeing a benefit to their portfolio and seeing why economic recovery has been able to happen as fast as it has. Here are a few industries that are doing quite well right now that you should consider adding to your portfolio.
Healthcare And Pharma Tech
It’s not surprising that healthcare would be a primary investment right now given the fact that a pandemic is happening. But even here, there’s different areas to invest in more so than others. Telemedicine is especially growing as certain doctor’s visits and meetings with psychologists have needed their own social distancing measures. You’ve probably seen a lot of Zoom conferences show up on various TV shows and news networks, but even the health industry is making a lot of use here. There are other companies who’ve gotten in on the action like Teladoc Health (NYSE:TDOC), which is still relatively new. But it has successfully put out telemedicine solutions that have benefited many hospitals and clinics at affordable prices, and its growth looks very good on paper.
Pharmaceutical stocks are also looking good right now, especially with the race to get a vaccine or complete antibiotic developed with the latest Operation Warp Speed going on. Companies like Pfizer (NYSE:PFE) are good bets to invest in right now. But you should also be on the lookout for companies who are going to disrupt the pharma market by starting to cut out the middle men by getting their products to consumers quicker.
The Big Tech Cybersecurity Space
Internet security has been an ongoing need for both businesses and consumers for a long time, but with the pandemic now forcing more people than ever to work from home, it’s become a higher priority. One of the biggest products that’s been needed is VPN software to encrypt the transfer of files, as well as securing video chat and screen sharing sessions over wide area network connections. You also have virus scanning now being combined with identity protection services as was seen with the purchase of LifeLock by Norton AntiVirus recently. One company to be aware of is Palo Alto Networks (NYSE:PANW) which is constantly innovating in the cybersecurity space.
The Cannabis Industry
As both a recreational and health-related field, cannabis is something else that has come up during the pandemic. It continues to be deregulated in many states both for medical use and CBD products, and for regular everyday use. The main risk with investing in cannabis is that many of the current big name North American cannabis companies are still big unknowns and have been struggling to get their financials in order. But even critics of the industry still see a lot of sales that could be coming for the industry in the near future, and a loosening of regulations of distribution between the US and Canada is one thing to pay attention to. The other downside to cannabis investing is that not very many companies are found on major exchanges like the NYSE. Instead, a good many of them listed on over-the-counter exchanges which don’t require as much financial disclosure and are often where high-risk penny stocks are traded. One good stock you should consider buying if you’re looking to invest in cannabis is Innovative Properties (NYSE:IPR). This company manages real estate related to cannabis production and distribution, so they effectively give you exposure to both real estate profits as well as the cannabis boom.
Consumer Staple Companies
There have been certain companies hurt in the basic consumer goods sector such as the food industry with restaurants closing, and even meat plants struggling to stay open. But there still are companies that see products fly off the shelf during these times as you’ve probably seen with toilet paper, soaps, sanitizers and more. Consumer staple companies like Proctor & Gamble have seen good sales during this time, but you might also look at marketplaces for these products at companies like Walmart and Amazon. Consumer staples aren’t always the most profitable investments, but they are usually a less risky addition to your portfolio.
The aforementioned industries have so many different advantages for both conservative and aggressive investors. You can balance out your portfolio with both immediate gains and long-term appreciation in case of losses. You can also invest in these industries either through buying individual stocks, or through mutual funds or ETFs which provide more hedge against major risks. A seasoned advisor can help you figure out your strategy there.