With the US 2020 election results still being counted, Wall Street analysts continue to try to determine which stocks will fare better depending on which party controls the White House and Senate.
While the outcome of yesterday's election is far from certain, on average strategists believe that a re-election for President Donald Trump would be in favor of growth stocks, while a victory for Democrat and former Vice President Joe Biden could keep the cyclical value stocks. weaken.
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As we don't yet know the outcome of this hotly contested and still tight race, we've compiled a list of three stocks that we believe are long-term buys, regardless of who wins. Any possible downturn in the post-election scenario, caused by political uncertainty or by strict measures taken to contain the spread of the virus, will provide a buying opportunity for investors who are on the sidelines with cash.
1. Amazon
Amid the continued spread of the COVID-19 pandemic, the global e-commerce industry is experiencing an unprecedented surge. No other company is better positioned to capitalize on this shift than the online retail powerhouse Amazon.com (NASDAQ :).
In the past week, Amazon indicated in the current quarter that the retailer expects the increase in online shopping to continue during the pandemic and beyond. Amazon benefited immensely during the pandemic as people shopped online and stocked a range of goods from electronics to groceries.
Benchmark analyst Daniel Kurnos, as he raised his price target for the retail giant from $ 3,675 to $ 3,800, wrote in a note quoted by Bloomberg that he sees "unabated, unprecedented demand for e-commerce" from consumers. The Seattle-based e-tailer should be "materially more profitable this holiday season," he said.
J.P. Morgan analyst Doug Anmuth also reiterated his overweight rating on Amazon in a recent note, saying that AMZN remains his "top idea," with a price target of $ 4,050 for 12 months. Amazon stock is down 15% since it hit a record high on Sept. 2. . Shares closed at $ 3,048.41 on Tuesday, up 1.46%.
2. Nike
The largest sportswear manufacturer in the world, Nike (NYSE :), is a great dividend stock in times of political and economic uncertainty. The company is emerging stronger from the global health crisis as it benefits from investments in e-commerce.
Successful execution of its online strategy, an attractive product mix and the global reach of its brand have positioned Nike to deal with disruptions caused by store closings and locks.
During the, Nike online sales increased 83% compared to the same period a year ago. The company continued to introduce new products during this time, including the first dedicated pregnancy collection and a new yoga line. Sales of women's clothing, Nike's main growth area, also accelerated.
These strengths undoubtedly show that Nike is a stock to buy regardless of who wins the election, as the company is in a strong position to perform well even when the sails get tough.
Nike shares are up more than 20% this year. The stock gained 1.80% during Monday's trading and closed at $ 124.59. There is much more potential upside for the stock once the pandemic is under control and political stability returns.
3. Netflix
Netflix (NASDAQ 🙂 is another strong name to add to your portfolio now that stocks have become 19% cheaper during this turmoil on the market. The stock of this streaming entertainment giant has proven to be one of the best at-home stayers as people indulge in binge-watching their streaming apps.
The pandemic has also hit its newest competitors – Disney (NYSE 🙂 and AT&T (NYSE 🙂 – diminishing their ability to challenge Netflix. Because of this favorable environment, the Los Gatos, California-based company was able to raise its prices last week, betting subscribers are willing to pay more for a huge library of shows and movies while continuing to work and study from home
Netflix is ??a stock to hold over the long haul, given the company's growing international reach, where any meaningful competition is still significantly lagging behind. Netflix has added 2.2 million net subscribers in the.
This growth came after two quarters of robust expansion, in which the streaming service added nearly 26 million net subscribers – almost as many as in all of 2019.
After growing more than 60% over the year, Netflix has lost some of its value in recent weeks, opening up a buying opportunity. On Monday, the shares closed at $ 484.12, down from a record high of $ 575.37 they hit in July.
