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5 Stocks Up on Signs of Slowdown in Coronavirus Cases

Zacks Equity Research

Over the past three weeks, the coronavirus pandemic has slowed down global economic growth, disrupted supply chains and weighed on corporate profits. The major bourses in the United States entered bear territory and the government had to take preventive measures including lockdowns.

However, what cheered up investors on Apr 6 were a bunch of headlines that indicated a potential stabilization in the spread of coronavirus in the United States and many other countries.

On Apr 6, the Dow soared 1,627.46 points, posting its third biggest point gain ever. The Dow, the NASDAQ Composite and the S&P 500 jumped nearly 7% in Monday’s session.  The S&P 500 recorded its highest level since Mar 13, and the rally also helped the broader index bounce about 20% from its 52-week low on Mar 23.

Signs of Slowdown in Spread of Coronavirus

On Apr 5, New York, the biggest hot spot of the coronavirus outbreak in the United States, reported that virus-related deaths in the state had declined slightly from the day before, for the first time in a week. Governor Andrew Cuomo believes that New York may be nearing an apex in terms of coronavirus cases.

The state has been taking strict measures in restricting the spread of the virus. On Apr 6, the governor announced closure of all schools and non-essential businesses until Apr 29 along with civil penalty of$1,000 for people who flout the state’s social-distancing measures and guidelines.

In Europe, the two countries, Italy and Spain, where coronavirus has wreaked havoc, have also shown signs of slowdown. Italy reported the lowest daily rise in virus deaths in nearly two weeks on Apr 4, along with a decline in number of patients in intensive care for the first time since the virus outbreak. Though new cases keep popping up every day, officials have urged citizens to maintain lockdown guidelines till the end of this month.

In the neighboring country, Spain, death toll grew by 674 on Apr 5.Thecountry has the second-highest coronavirus death toll worldwide after Italy so far. But the virus-led death curve has been going downward since Apr 2, when the daily count touched 950.

In Asia, South Korea reported lesser than 50 new cases of coronavirus since its peak at the end of February. South Korea has been the most affected country in Asia after China and has shown a downward trend in new cases.

5 Stocks to Buy

As coronavirus shows signs of slowdown and investors look for positive developments in the stock market, we have shortlisted five stocks that have not only risen in the past month but also gained on Apr 6.

First, we have DHT Holdings, Inc. DHT, whichowns and operates crude oil tankers. The stock has risen23.4% in the past 30 days and gained 1.3% on Apr 6.

The company’s expected earnings growth rate for the current year is more than 100% compared with the Zacks Transportation - Shipping industry’s projected earnings growth of 9.9%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 90.1% upward over the past 60 days. DHT Holdings sports a Zacks Ranks #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Biopharmaceutical company Summit Therapeutics plc SMMT, which discovers, develops, and commercializes medicines to treat infectious diseases, also makes it to our list. The company’s expected earnings growth rate for the current quarter is 68.6% against the Zacks Medical - Drugs industry’s projected earnings decline of more than 100%. The stock sports a Zacks Ranks #1.

Summit Therapeutics’ shares have risen 41.7% in the past 30 days and added 2.6% on Apr 6. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 1.3% upward over the past 60 days.

Next we have, Sharps Compliance Corp. SMED, which provides medical, pharmaceutical, and hazardous waste management services. The stock has rallied 18.8% in the past 30 days and gained 0.4% on Apr 6.

The company’s expected earnings growth rate for the current year is more than 100% compared with the Zacks Pollution Control industry’s projected earnings growth of 8%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 50% upward over the past 90 days. Sharps Compliance sports a Zacks Ranks #1

Frontline Ltd. FRO is a shipping company that engages in transportation of crude oil and oil products worldwide. The company’s shares have rallied 17.8% in the past 30 days and added 6.5% on Apr 6.

The company’s expected earnings growth rate for the current year is more than 100% compared with the Zacks Transportation - Shippingindustry’s projected earnings growth of 9.9%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 9.3% upward over the past 60 days. Frontline carries a Zacks Ranks #2 (Buy).

Lastly, we have Kala Pharmaceuticals, Inc. KALA, a biopharmaceutical company that focuses on the development and commercialization of therapies using its proprietary nanoparticle-based Mucus Penetrating Particles (MPP) technology for the treatment of eye diseases. The stock has risen38.9% in the past 30 days and added 1.3% on Apr 6.

The company’s expected earnings growth rate for the current quarter is 22.4% against the Zacks Medical - Biomedical and Genetics industry’s projected earnings decline of more than 100%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 9.7% upward over the past 60 days. Kala Pharmaceuticals carries a Zacks Ranks #2.

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Sharps Compliance Corp (SMED) : Free Stock Analysis Report
 
Frontline Ltd. (FRO) : Free Stock Analysis Report
 
DHT Holdings, Inc. (DHT) : Free Stock Analysis Report
 
Summit Therapeutics PLC (SMMT) : Free Stock Analysis Report
 
Kala Pharmaceuticals, Inc. (KALA) : Free Stock Analysis Report
 
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