Because of the coronavirus pandemic, which has affected the global economy this year, the Dow Jones Industrials fell heavily from highs at the beginning of the year and shows a growth of only 1.78%. At the same time, there is stock belonging to it, which demonstrated the vitality, rapid recovery, and are good candidates for purchase.
The shares included in the Dow Jones Industrials are faced with high market volatility, being on the “roller coaster ride” this year because the pandemic coronavirus has led to an unprecedented level of economic and political uncertainty.
80% of the 30 shares comprising the Dow Jones since the beginning of the year lost its position, however, emerged a group of leaders, the growth of which had a positive impact on the index. Here are three stocks that has affected more, at the same time, their growth prospects for the remainder of 2020 and in the future look promising.
Chart of Microsoft (MSFT) this year looks to be as optimistic V-shaped recovery after the recession in February with the arrival of the pandemic. During the last quarter, Microsoft shares have gained an impressive increase of almost 37%, an increase from the beginning of the year was 33.6%.
Microsoft CEO Satya Nadella, who took his post in 2014 was the founder of the positive long-term change in the company. By the beginning of 2020 everybody on wall Street has long recognized the progress Microsoft and its high potential.
The main impetus to the growth of the company receives from its initiatives in cloud computing, which include all the most popular software packages available to users regardless of what operating system they use.
Proof of the success of cloud business Microsoft is to receive this year’s $10 billion cloud contract with the Pentagon. In addition, the Goldman Sachs survey of 100 IT managers of large companies of the Global 2000 have shown that they prefer cloud service Microsoft Azure before Amazon Web Services (AMZN). Marketinfo.pro wrote about it in the article “Cloud service Microsoft won the championship from Amazon among large companies”.
Such a strong position in the cloud services helped Microsoft in a pandemic, companies massively switched to cloud services for the convenience of working remotely, and app for the web conferencing Teams received more than 44 million users a day.
The results of the conference the Microsoft Build developers for 2020, conducted in may, showing investors that the company prepares many more products to monetize in the future. Investors can be confident that Microsoft will be able to continue to strengthen the position and bring greater returns to shareholders.
Chart of Apple shares (AAPL) draws similar to Microsoft picture, showing 83% growth over the last 12 months, growth of 27.3% since the beginning of the year and almost 55% over the last 3 months.
Apple managed to hold the lead despite a number of negative consequences of the pandemic, the global trend of falling smartphone sales, the closure of physical stores, disruption of supply chains, etc.
With the beginning of 2020 a huge database of sold “connected” devices, Apple’s success has been in sales of some services by subscription. In addition, Apple is constantly striving to improve and add functionality to its product lineup. Latest high investor expectations based on Apple’s plans to manufacture its own ARM chips in the Mac and the expectations of the release of the iPhone with the 5G, which could trigger a huge new update cycle, especially among users who are increasingly using wireless networks in their remote work. If demand is high, it could mean a huge victory for Apple and help support the further growth of its stock.
The success of the growth stocks of the largest network of stores for home improvements Home Depot (HD) is similar to the previous two stocks.
Home Depot shares rose by 39.65% in the last three months, recovered quickly after a sharp and unprecedented drop in March, an increase was 14.27% compared to the beginning of 2020.
Such a quick and strong recovery of the shares of Home Depot proves the company’s ability to withstand the crisis and proves its value to investors.
The significant fact is that Home Depot stocks did not react strong decrease for publication in may weak financial results for the first quarter. At the same time, despite the pandemic, the company reported increased total quarterly sales by 6.4% (USA, Canada, Mexico) and by 7.5% in the US, compared to last year results.
Although the retailer has suffered from the crisis, his strategy digital sales helped it adapt to the changing needs of its customers. In addition to sales through its website and delivery service, Home Depot has achieved high performance of the service “pick-up” (when the consumer takes an online order in the store). Also successful was the decision of placing the cabinets to retrieve a small online orders. Read more about digital strategy Home Depot Marketinfo.pro wrote in the article “Digital strategy Home Depot promises great benefits for growth.”
Thus, Home Depot proves its durability and good preconditions to growth, which strengthens investors ‘ confidence in the future of the company.
Although the situation with the pandemic is not yet completed, shareholders can expect continued strong growth and a great future Home Depot, Apple and Microsoft in 2020.