For investors currently looking to up their stock market game, epicenter stocks would be a particularly hot sector now. However, before we get into that, what are epicenter stocks might you ask? Originally coined by Fundstrat’s Tom Lee, “epicenter stocks” are companies that were hit hardest during the pandemic, but stand to benefit the most from an economic reopening. Examples of reopening stocks include cruise-line stocks, airline stocks, and restaurant stocks. At the same time, travel stocks would also fall under this group as the tourism industry recovers when the pandemic is under control.
The current bull argument is that top epicenter stocks could be looking at the biggest recoveries once the pandemic comes to an end. Logically, positive vaccine news would incentivize investors to turn towards epicenter stocks. Of course, the idea of betting on epidemiological trends can be risky. While the infection data seems encouraging, no one can say for sure if the vaccines could offer full protection against the new variants.
Investors looking to make commendable gains as the economy reopens could consider epicenter stocks. Evidently, investors are already flocking to top cruise line stocks such as Norwegian Cruise Line (NYSE: NCLH). Another example of an epicenter stock is Airbnb (NASDAQ: ABNB) that has been up by over 20% year-to-date. Given all of this, you might be looking for some epicenter stocks to invest in now. Should that be the case, here are four to consider now.Top Epicenter Stocks To Watch Now
- JetBlue (NASDAQ: JBLU)
- Deere & Company (NYSE: DE)
- Royal Caribbean Cruises Ltd (NYSE: RCL)
- Carnival Corp. (NYSE: CCL)
First up, JetBlue is a major American low-cost airline. It is the seventh-largest airline in the United States based on passengers carried. The company is based in New York with offices in Utah and Florida. It operates over 1,000 flights daily and serves 100 domestic and international network destinations in the U.S, Mexico, the Caribbean, Central America, and South America.Source: TD Ameritrade TOS
The company’s stock price has been on a consistent uptrend since the market crash in March 2020. JBLU stock received another boost earlier this week along with other airline stocks. The bullish move came after the announcement from the CDC over the weekend. The CDC provided updated guidance last Friday that indicated that those fully vaccinated can travel with ease.
Investors appear to be very confident in JetBlue’s ability to bounce back. That is considering that JBLU stock is now trading above its pre-pandemic level. But of course, it is going to take a while for the airline to see a full recovery. With that in mind, do you think JBLU stock can continue its recent momentum?Deere & Company
Another cyclical company to watch now would be manufacturing company, John Deere. For some context, the company manufactures agricultural, construction, and forestry machinery. Aside from that, John Deere also develops diesel engines, drivetrains, and lawn care equipment. Notably, the company’s key end market is the agricultural industry. With over a century of experience in the field, John Deere would be a leading player in the agriculture and construction industries. Given the recent $2 trillion infrastructure bill, DE stock could be on investors’ radars now. In fact, the company’s shares are currently looking at gains of over 150% in the past year already. Given the current happenings in the industry, could it be worth investing in now?Source: TD Ameritrade TOS
Well, safe to say, the company has not been resting on its laurels. Just yesterday, John Deere revealed two key updates to its current portfolio. Firstly, the company unveiled Precision Construction (PC). According to John Deere, PC provides customers with a suite of tech solutions that help maximize uptime and boost productivity. Second, John Deere increased the range of its grade control solutions via the launch of SmartGrade.
In short, SmartGrade is precision tech that works to boost overall job site productivity and efficiency. Particularly, excavators with SmartGrade automate key excavation processes for operators while achieving accurate results. With John Deere seemingly firing on all cylinders, will you be adding DE stock to your watchlist?
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Following that, we have Royal Caribbean Cruises Ltd (RCL). As you’d expect, RCL would be another go-to name among epicenter stocks. After all, the broader tourism industry was virtually halted when the pandemic hit. Over a year later, the company’s operations remain at a standstill. While this may be the case, RCL stock continues to flourish this year with year-to-date gains of over 25%. Given that RCL operates one of the world’s largest cruise fleets, I can see why investors would be keen on RCL stock.Source: TD Ameritrade TOS
Diving right into it, RCL made two major announcements last week. For starters, the company added a brand-new ship, the Odyssey of the Seas, to its fleet. As it stands, RCL is looking to make Israel a first-time homeport for the Odyssey. Additionally, the company will be introducing the Quantum Ultra Class experience to North America with this ship as well.
If that wasn’t enough, the company will also be extending its Singapore cruise season. Namely, the Quantum of the Seas will continue sailing from Singapore through October 2021. This is a fantastic update for the Quantum which resumed sailing in December 2020. It seems that RCL is kicking into high gear even amidst the current pandemic. Could this mean big gains for RCL stock?
[Read More] 4 Top Cyclical Stocks To Watch Right NowCarnival Corp.
Last on the list, we will be looking at cruise industry giant, Carnival. For the uninitiated, it is the largest travel leisure company globally. Carnival commands a massive fleet consisting of over 100 vessels across 10 cruise line brands. The Florida-based company has operations in the U.K. and Panama as well. Amongst the key reopening plays now, CCL stock has become a go-to for investors. This is no doubt because of the pent-up demand for cruise experiences built throughout the pandemic so far.Source: TD Ameritrade TOS
In a quarterly update Wednesday, Carnival said booking volumes in the first quarter of 2021 were about 90% higher than in the fourth quarter of 2020. This level of bookings was achieved with minimal advertising and marketing, according to Chief Executive Officer Arnold Donald. Following this update, CCL stock is up a modest 2.17% to $29.22 as of 12:57 p.m. ET.
With all that in mind, it is only a matter of time before the company rebounds. If things improve quickly in the coming few months, there’s a good chance the company could rebound strongly. With the U.S averaging around 3 million vaccination doses a day, things could really turn around for CCL stock sooner than we expect.