The Best Dow Jones Index COVID-19 Winners
Despite not including electrifying actions such as Amazon.com, Inc.
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, and thus losing its historical gains, the Dow Jones index still has quite a few winners under its umbrella. Although Apple Inc
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and Microsoft Corporation
it had its worst performing days since March yesterday, the drop was followed by fellow Facebook, Inc.
, Alphabet Inc
and Amazon. One bad day cannot erase the massive rebound of these tech stocks that literally flourished throughout the pandemic, or more precisely, the first two quarters of the year.
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Apple shares are up nearly 70% to date with the market value exceeding a market cap of $ 2 trillion. In addition, Apple no longer depends on its “sacred cow”, iPhone, as it proved that it is successfully reshaping its business model to services. But even the iPhone is fine, as Omdia’s research showed that the iPhone 11 was the most popular smartphone during the first half of 2020.
Microsoft’s latest revenue of Microsoft 38 billion exceeded expectations of $ 35.5 billion. Earnings per share of $ 1.46 exceeded the estimate of $ 1.36. If you look at Intelligent Cloud alone, revenue amounted to $ 13.4 billion. The history of Microsoft’s renaissance is largely due to its Intelligent Cloud business. During the fourth quarter, Intelligent Cloud generated revenue of $ 13.4 billion. This increase of 17% compared to the same quarter last year. If the pandemic has shown us anything it is that technology is crucial for business resilience and faster recovery. Coca-Cola Co
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and Walgreens Boots Alliance Inc
He also turned to Microsoft for its simplicity and seamless integration.
Microsoft’s gaming business also saw growing growth of 64%, amounting to 1.3 billion, as Xbox hardware revenue rose 49%. The Xbox Series X will also arrive in November. Microsoft has more than one billion business users and can be found in almost every company on the planet. From early March to late April, Microsoft Teams grew from 11 million to over 75 million users. Users want systems that can work together without complexity and Microsoft delivered on that promise.
Although AstraZeneca plc
it is the leader in the Vaccine Race, Johnson & Johnson
it has extensive financial resources along with a variety of brands to increase its possibilities. Yesterday, Reuters reported that Johnson & Johnson announced that its coronavirus vaccine prevented hamsters from becoming seriously ill. Although we have to wait for human trials to begin next month, this is something to get excited about. Its pharmaceutical segment still held strong amid the devastating second quarter. Despite the fall in profits, the company continued to pay dividends. Johnson & Johnson is a Dividend Aristocrat, a company that not only pays dividends continuously, but also keeps increasing them. The bottom line is that it is diversified enough to survive the storm and at the same time expects to expand earnings for fiscal 2020 despite having produced losses in the second quarter.
Despite the focus on performance chemicals, Dow Inc
The portfolio is actually quite diversified. During the second quarter, some of Dow’s sales suffered as it was the worst quarter of the year worldwide. But despite the plunge in sales of large items such as new homes, furniture and cars, sales of cleaning and disinfection products, which also use Dow Chemicals, rose. People began to cook at home, increasing the demand for food packaging. Sales of Professional Construction Chemicals fell, but DIY home improvements Rose and pulled paints and coatings. This diversified portfolio allowed Dow to exceed expectations. More importantly, it generated a lot of cash to fund its dividend.
Pharma titan Merck & Co.Open system.
and recently expelled from the Dow, Pfizer Inc.
, they appear to be two of the most evenly matched competitors in the pharmaceutical sector. But unlike Merck, Pfizer is limping on top of the pandemic creating an opportunity for a vaccine. Merck also has two vaccine candidates. Chief executive Kenneth Frazier announced Thursday that human trials will begin fairly soon. For the last half of a decade, Merck’s shares have consistently outperformed Pfizer’s.
Over the next three years, Merck will invest Merc 19 billion in expanding its oncology, vaccines and animal health segments. Its cancer immunotherapy is expected to continue to fuel its sales as Keytruda’s sales were 46% year over year.
The Procter & Gamble Co
it had its best fiscal year in more than a decade. Even though we are all aware of germs in this new pandemic era, we still have cravings like donut and coffee. Procter & Gamble has already partnered with Dunkin ‘ Brands Group Inc
owned Dunkin ‘ Donuts to promote the use of its cleaning products in restaurants, but is looking for more partners with fast food, hospitality, transportation and health care companies. At the end of the day, it’s more than revenue, it’s free advertising. Sales earnings managed to exceed management’s target for the fourth consecutive quarter, and cash flow and profitability reached new highs. But most importantly, the prospects are even brighter with further expansion of market share. Fiscal 2020 results are evidence that P & G can invest aggressively in growth strategies while increasing profitability.
So, there you have it. Big Tech, medical devices, pharmaceuticals and consumer goods Dow pandemic winners. And there is no reason to doubt that the post-COVID era will be so kind to them, as they provided meaningful service and products that really made a difference during these unprecedented circumstances.