COVID had a serious toll on the stock prices of almost all industries. From banks to automotive, almost all companies from various industries have seen a serious decline in their company’s performance. But some companies benefitted from the pandemic too. These companies performed so great that if one would have invested in some of these stocks, they would probably be a millionaire right now.
The lockdown brought with itself the work from home situation, increase in online shopping, more usage of freelancing sites and a lot more. And this brings the question if COVID Lockdown 2.0 occurs which stocks might benefit the most? So, let’s start with the list of stocks that can make you a millionaire.
12 Stocks that can make you a millionaire
Zoom has been one of those stocks that have seen huge gains during the pandemic. The video communication platform was hovering around $100 before the lockdown happened in March. And now has been trading daily at 4 times that price. It even touched the $500 mark during its peak usage time. Now that lockdown has eased the use of the app has reduced even though it can be a small change, but it did. But another wave of COVID and the lockdown 2.0 might further boost its price. If one would have invested $1000 back in March, they could have more than $4000 right now.
With the job problems in COVID, freelancing has been given a lot of attention. The rise in the usage of sites offering such services has led to a steep increase in their share prices too. One such site is Fiverr, the trading prices of which now is now around 7 times the price of the stock before lockdown. If a person invested a $100,000 back in March in Fiverr, he would be nearing to become a millionaire at this point. No doubt if the second wave of COVID and lockdown occurs, this is a stock one needs to keep an eye on.
A clear example of how the prices of the shares of e-commerce sites have seen a rise in the pandemic is Etsy. The share price of the American e-commerce site was around $50 before the lockdown. And since then, with small ups and downs, it has seen a steep increase over the past 6 months. An almost 300% return in just 6 months is very rare. This is definitely one of the stocks that can make you a millionaire if you invest enough money.
How can the list be complete without including a company which was a penny stock before the lockdown and now has been trading over $50? During the lockdown, the share prices of the American online retailer Overstock crossed $100 and made an all-time high of $122. If one compares the peak time of the shares to the prices before the lockdown, the returns have been tremendous scaling to almost 40 times. And since the prices have consolidated a lot, it makes the share an even better buy if Lockdown 2.0 occurs.
We all know about Amazon and that it’s CEO is currently the richest person in the world. Unlike the stocks that were mentioned above, the price of Amazon’s shares wasn’t less in any sense before the lockdown. It was trading at around a hefty $1800, but after the lockdown happened and the online sales increased further, the share prices increased by almost 70%. Now one might be thinking why is it in the list when it’s not even giving a 2 times return. Well, the reason for that is the trust that Amazon’s name brings with itself and how most people will be comfortable in investing in the e-commerce company.
Chewy is an online retailer for pet food based in the US. It is obvious that the lockdown has made everyone feel very lonely, and one thing many people have done is getting a pet. This has helped them have a partner and occupy themselves. So, with the lockdown and the increase in pets, the consumption of pet food and online delivery has also increased (you see how everything is going hand in hand). This is why chewy that was trading at around $26 before the lockdown, increased by more than 2 times after the lockdown. So, definitely look out for this one in the future.
The pandemic and the lockdown has boosted the sales of online retailers a lot. There are giant companies like Amazon that benefitted too from this, and then there are comparatively smaller companies like Target that too registered a 70% increase in share prices after the lockdown. The shares of the 8th largest retail company in the US, Target, was trading at around $100 in March and now in November, it has been trading at $170. A clear 1.7 x increase in 6 months, and if another lockdown occurs, there is a high chance the figures will increase even further.
The importance of cloud computing is not unknown to anyone, and with everything getting digitised, the services provided by cloud-computing companies have become very important. Veeva is one such company that provides cloud services to pharmaceutical and life sciences industries and has seen a huge increase in its share price during the pandemic. It was trading at around $138 before the lockdown in March and is now sitting comfortably at $270 an almost 2x increase. With every company requiring digitisation, Veeva is a company one must keep an eye on even if the Lockdown 2.0 doesn’t occur. It is surely one of those stocks that can make you a millionaire.
With people spending more time in their homes than ever, the need for furnishing and making it a little better seems obvious. That is why even though HomeDepot saw a steep fall after the lockdown, it very quickly jumped back and actually surpassed its price before the pandemic. If we compare the prices just after the lockdown to now, the gains have been huge (80%). An important thing to note that if another lockdown happens, people will start investing in their homes even more. This will even propel the stock price of HomeDepot and other similar companies.
William Sonoma is also a home and kitchen furnishing American retail company. Before the lockdown, in March the shares of the company were trading at $45, and now the prices have more than doubled. I have already talked about why people are furnishing their homes during the lockdown. This makes William Sonoma one of the top stocks to keep an eye on. It has already doubled in the past 6 months and has been constantly rising with little ups and downs.
The first lockdown was very strict with in-house dining closed and people stuck in their homes. This, in turn, increased the food delivery business of good restaurant chains. Wingstop is one such company that has seen a huge surge in orders during the pandemic leading to an increase in its share prices. This makes it a no brainer that if another lockdown occurs and people can’t dine-in restaurants, the food delivery will again flourish. During the peak time in August, the price of the shares was around 2.4 times as compared to March and since then has consolidated a bit.
Salesforce is a cloud-based company providing a variety of services. With digitisation kicking-in in every sector, the stock prices of the company have also surged. Comparing the prices now to March it has grown 2x. And I am sure as more companies start taking a completely digital approach space for these companies to prosper will further. Veeva and Salesforce are two companies I would ask anyone to keep an eye on no matter what’s happening. These are the stocks that can make you a millionaire if not now very soon then in the future.
All of these stocks performed exceptionally well after the lockdown in March and we can expect the same to happen if lockdown 2.0 occurs. I hope that the list of stocks that can make you a millionaire helps you guys in making a good investment. Do note that we are in no way responsible for your investment decision, so invest wisely! And, if you found our content informative do like and share it with your friends.