The coronavirus has upended life as we know it. The constant uncertainty is an unfortunate reality for investors. COVID-19 is a disrupter for so many industries, and while devastating for some, others are benefitting.
At a recent webinar hosted by TheStreet experts including Bob Lang and Katherine Ross and Dr. Perter Maric of O2 industries discussed which companies would emerge as beneficiaries of the “new normal” living with the coronavirus.
Makers of PPE are already showing an uptick as masks, respirators, gloves, etc., are now a way of life. Companies like O2 industries, a leader manufacturer of reusable respirators, 3M (MMM) - Get Report, Lakeland and Honeywell (HON) - Get Report and other companies that make PPE are benefitting from the increased and ongoing demand. With coronavirus infections continuing to spike and uncertainty about when a vaccine might be ready, that demand looks likely to continue.
Other industries are benefitting as well, as Bob Lang discussed at the webinar: “No doubt about it. I think not just the PPE, but also the fact that some of these companies have set themselves up for long term effects from working from home or being sheltered away from other people. You've got companies, like Zoom (ZM) - Get Report. And Teladoc (TDOC) - Get Report is one. DocuSign (DOCU) - Get Report is another. CrowdStrike (CRWD) - Get Report."
Catching most of Lang's attention, however, was Peloton (PTON) - Get Report. "This stock is up enormously already in 2020 just based on the fact that they're going to be selling a lot more bikes to people staying at home working out,” Lang said.
Peloton has reported its global membership base rose to 3.1 million at the end of June, more than double a year earlier which boosted revenue up 172% year over year to $607million. As more gyms are forced to close due to COVID restrictions, the demand for at-home exercise equipment is likely to stay strong.
Clothing retailers are introducing new revenue streams by creating products for consumers during the pandemic. Joining the panel, TheStreet's Katherine Ross said companies like Under Armor (UAA) - Get Report, Lululemon (LULU) - Get Report and Nike (NKE) - Get Report are part of the trend.
“It's one of these things where they now can kind of capitalize in a way that they hadn't been able to before. And we kind of see these masks as an opportunity to express yourself. So you can go out with the surgical mask, just that blue mask that we commonly see, or you can choose to express yourself and have a Nike mask that goes with your Nike yoga outfit, and things like that," Ross said.
Even if or when a vaccine is found, it’s clear we will all be wearing PPE for quite sometime to come, meaning these business are on track to continue to benefit from the “new normal” of COVID-19.
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