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JPMorgan says these 6 stocks stand to benefit as coronavirus sparks 'fear of public places' and work-from-home arrangements

Mar 18, 2020, 23:06 IST

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Noah Berger/Reuters
  • There are still bright spots in markets reeling amid the coronavirus pandemic, according to a Wednesday note from JPMorgan.
  • E-commerce in particular "will benefit as closings of physical stores & fear of public places should accelerate the secular shift of retail online, which we believe will prove sustainable even after the crisis ends," wrote a team of analysts led by Doug Anmuth.
  • Here are six buy-rated stocks JPMorgan sees poised to benefit amid the coronavirus outbreak.
  • Read more on Business Insider.

The coronavirus pandemic has sent global markets are reeling as investors brace for how the spread of the virus will hinder global growth.

Still, there are some bright spots in the market, according to a Wednesday note from a team of analysts led by Doug Anmuth at JPMorgan.

E-commerce in particular "will benefit as closings of physical stores & fear of public places should accelerate the secular shift of retail online, which we believe will prove sustainable even after the crisis ends," Anmuth wrote.

People around the world have been told to practice social distancing to curb the spread of the virus. That's meant cancelling trips, working from home, ordering food in, and stockpiling staples such as non-perishable food and toilet paper.

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As people increasingly look for the best ways to work and live in the confines of their homes, JPMorgan also sees that subscription-based services including Netflix and Peloton "should be at least stable or benefiting from the current environment," according to the note.

There is one standout stock on JPMorgan's list - Amazon. It's "not only the primary beneficiary, but also the best operator & best positioned across our sector for the long term in our view," Anmuth wrote.

The company is serving as an important source of food, cleaning supplies, and other household items as physical stores close. And, as demand for the online service increases, Amazon has added 100,000 positions across fulfillment centers and delivery.

Beyond the near-term benefits, JPMorgan believes Amazon will gain incremental share of both retail and online retail in any downturn that might come after the coronavirus outbreak, as the company did after the financial crisis in 2008.

Here are six buy-rated stocks that JPMorgan sees as benefiting during the coronavirus pandemic, in alphabetical order.

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1. Amazon

Ticker: AMZN

Rating: Buy

Sector: E-commerce

Source: JPMorgan

2. Chegg

Ticker: CHGG

Rating: Buy

Sector: E-commerce, subscription service

Source: JPMorgan

3. Chewy

Ticker: CHWY

Rating: Buy

Sector: E-commerce

Source: JPMorgan

4. Netflix

Ticker: NFLX

Rating: Buy

Sector: E-commerce, subscription service

Source: JPMorgan

5. Peloton

Ticker: PTON

Rating: Buy

Sector: E-commerce, subscription service

Source: JPMorgan

6. Spotify

Ticker: SPOT

Rating: Buy

Sector: E-commerce, subscription service

Source: JPMorgan

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