I thought it would be interesting to look at my five best and five worst performing stocks during the Coronavirus crisis to see if it gives me a sense of what businesses are able to withstand the economic fallout and which ones are not.
The word “best” is relative, here, because even my top performer over the last month – that’s the period I’m looking at – is down 13 percent. But keep in mind the S&P 500 was down 32 percent!
So here are my five best performers during the last month of carnage in the markets:
- Take-Two Interactive. Down 13%. They make games like NBA 2K and Grand Theft Auto. Certainly makes sense that a video game producer would do ok during this period, because what else are you going to do stuck in your house? Or at least, what else are your kids going to do?
- Netflix. Down 14%. Again, stuck at home, Netflix and quarantine. Pretty self-explanatory.
- Amazon. Down 14% They can take our freedom, but they cannot not take our packages!
- Waste Management. Down 20%. Thankfully, they are still picking up our garbage, which we have even more of now that we’re home…all the time.
- Pepsi. Down 28%. This is, of course, more of a snack company than a beverage company. Certainly nice to have a bag of Frito-Lays to munch on. Although a company this stable losing 30% in a month is just mind blowing.
And now the five worst performers…
- Lowe’s. Down 48%. Guess home improvement projects aren’t on the list of Stay Home projects.
- Dunkin’ Brands. Down 47%. They’ve been hit worse than Starbucks (down 35%) and McDonald’s (down 30%). Even with drive-thru, it’s brutal to be in the restaurant business right now, and no one is bringing donuts into work, because they’re not going to work.
- Etsy. Down 42%. Probably not a lot of discretionary shopping going on right now. Plus, do you really want something that was “hand-crafted” at this point in time?
- Disney. Down 39%. Yikes, the parks are closed and many trips have been cancelled.
- Chipotle. Down 39%. I’d kill for some tacos right now, but this has been a bad place to be over the last month. Maybe their history of health issues is not helping either.
All of these stocks might be bargains down the road, but there could be a lot of pain in between. I’m not adding to or selling any of these. I just don’t think I’m smart enough to identify which companies will bounce back the most or the soonest. And when everything is down this much, I’d just as soon buy index funds.