Deals to be found among stocks hit by coronavirus

Apr 1, 2020 10:50 PM ET

Fear is a powerful thing. Justified or not, it can cause ripple effects throughout society. Such is the case with what we are seeing right now with the Coronavirus. It is the fear of the unknown that has many people in America and around the world changing their habits and patterns. That has impacted the stock market in ways we have not seen since the Great Depression. However, in the midst of every storm is a wave of opportunity. One simply needs to look hard to find it. That is why you will want to consider the following stocks hit by Coronavirus fears. There may just be a hidden gem to be found here.

United Airlines

People simply are not traveling today. In many cases, it is not even possible to fly. When it is, the fear of the Coronavirus has caused people to stay home by the droves. United Airlines is a company that depends heavily on the Chinese market. With travel to that region all but halted in recent months, it is easy to understand why the stock tanked more than 17 percent in the first few weeks of January alone. That selloff has continued in recent months. However, we know that travel eventually rebounds after major disasters or downturns. It is only a matter of time before people begin flying again. When that happens, one would think that shares of United will rapidly increase.

Delta Airlines

Delta is another major world airline that has understandably hit on difficult times as a result of the Coronavirus. That being said, history tells us that this will eventually reverse itself. It is currently trading at just 7.6 times the earnings it expects for the next quarter. This is much lower than we would typically see with Delta. After other selloffs we have experienced with health scares in recent decades, buying stock in an airline has traditionally paid off handsomely.

Booking Holdings

If you are trying to find out how to make money trading, you will need to begin by looking for value stocks. Right now, that would be in the travel sector. People are not traveling right now. Cancellations are at an all-time high. This is not going to reverse itself overnight, but it will reverse itself eventually. However, this has resulted in a steep decline in share prices for major travel companies such as Booking Holdings. This is the company that own Priceline. It is a deal right now, so it is worth considering.

VF Corporation

Travel is not the only sector of the economy that is being hurt given the fear that is prevalent as a result of the Coronavirus. Many retailers are suffering. VF Corporation alone is down double digits and that is likely to continue. As people are staying home more, there is less consumption taking place. People are not working, so they are not spending. There is also the fear of the unknown that is causing people to cut back on their expenses for the time being. Again, this will reverse itself once the crisis begins to wane.

These are five potential deals that can be found in the midst of the fear circulating today due to the Coronavirus. It is important to look into each of these options and see if there is a company here that you want to add to your current portfolio. Since we do not know what the future holds, it could take some time before these stocks rebound. However, when they do it is estimated that there can really be some solid returns to be gained here.

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