3 Stocks Bargain-Hunters Will Target When the Coronavirus Panic Finally Ends, Crypto Coins News
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The coronavirus outbreak routed the stock market, which presents an opportunity for bargain-hunters.
Foot traffic to hospitality and entertainment spots in China has fallen drastically in recent days.
The worst-affected companies include U.S. stocks such as Las Vegas Sands, Starbucks, and Wynn Resorts.
The deadly coronavirus outbreak has battered worldwide financial markets . U.S. stocks with exposure to China’s hospitality and entertainment industries have been hit particularly hard by mounting travel restrictions and the most extensive quarantine in human history.
The Coronavirus Outbreak Makes These Stocks a Bargain
Panic-stricken investors are voting with their feet, and this could hand level-headed investors an opportunity to profit from the sentiment-driven sell-off.
Here are three stocks for bargain-hunters to target once the dust has settled.
1. Wynn Resorts
Wynn Resorts (NASDAQ: WYNN) boasts significant operations in Macao – “the Las Vegas of Asia” – which is located in southern China. But maybe Las Vegas should be called the “Macao of North America.”
The coronavirus epidemic has drastically reduced the number of Macao tourists during a critical time: Chinese Lunar New Year celebrations. Year-over-year
Additionally, the government shut down facilities hosting public events and performances in a bid to contain the spread of coronavirus from mainland China. This has further complicated the situation for the entertainment and hospitality sectors, with Wynn Resorts being no exception.
WYNN stock has fallen nearly % since January when the second coronavirus-related death hit the newswires .
But once the worst is over, the stock should recover. It’s currently a Wall Street darling with a consensus rating of Overweight .
2. Las Vegas Sands
Nearly two-thirds of Las Vegas Sands ’(NYSE: LVS) revenue comes from Macao.
Don’t let the name fool you – Las Vegas Sands generates most of its revenue in Macao – not Nevada. | Source: Las Vegas Sands (PDF)
Unsurprisingly, the coronavirus disease has hit Las Vegas Sands hard. Since January , LVS stock has fallen more than 20%.
Like WYNN, this stock has an Overweight rating , making it ripe for picking once the panic over the respiratory illness is over.
3. Starbucks
Starbucks stock has more exposure to China than investors might realize. | Source: testing / Shutterstock.com
Starbucks (NASDAQ: SBUX) opened its first Chinese location two decades ago, and today it runs over 4, 386 stores on the mainland . That’s about (% of Starbucks’) worldwide store network .
Analysts estimate SBUX generates 17% of its sales in China and up to 20% of its operating income in the world’s second-largest economy.
Starbucks has already shut down all its outlets in Wuhan – the epicenter of the coronavirus outbreak – as well as the entire Hubei province. Its other China locations will likely suffer as traffic restrictions and heightened awareness reduce consumer spending at hospitality establishments.
On Monday, SBUX fell by nearly 4% after the death toll from coronavirus surpassed 386 people.
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