Two High-Quality Companies To Bet On In A Post-Coronavirus

by IAM Newswire3 min read

We do not know what the long-term impacts of this health crisis will be. The market has rallied in recent weeks, but it is still likely we could be in for a sustained economic recession.

If there is one rule when it comes to investing in recessions, it’s that they tend to clean the market of weakest players and help the strongest players become more dominant. As long as you don’t need this money in the next few years, these types of stocks that are dominant players in growing industries can be a good way to go. Growth investing isn’t about making a quick buck, it’s all about identifying companies that will become dominant before they do. 

Two high-quality stocks that I believe have years of growth ahead of them are PayPal Holdings (NASDAQ: PYPL), Nike Inc (NYSE: NKE) and Zoetis (NYSE: ZTS).

PayPal

PayPal is positioned as the world’s leading digital payments processor. Its recent partnership with UnionPay that gives it access to China has only cemented that lead. Although PayPal is losing its primary payment processor status at eBay(NASDAQ: EBAY), it has sufficient activity to compensate for this loss thanks to its other partners, such as Argentinian MercadoLibre (NASDAQ: MELI) and FIS Global. Between those partnerships, its strong global presence of over 100 million international users, and the continued transition to a cashless society, I believe PayPal is well-positioned for future growth.

Nike

Nike is a well-managed company that’s simply masterful when it comes to promoting and growing its brand. Though the pandemic has led to the closure of its stores and factories in China, sales in the fiscal third quarter of 2020 that ended in February were impressive. Digital sales came to the rescue and resulted in strong double-digit growth. Along with expanding margins, well-managed expenses, and impressive earnings per share prior to the outbreak, Nike has proven that it is so much more than a sportswear manufacturer. At this point, Nike is part retail company, part health and wellness brand. And its growing online presence has positioned the company to navigate this storm and come out stronger on the other side

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