3 Stay-At-Home Stocks Poised For Growth In A Post-Vaccine World

NYSE: V | Visa Inc. News, Ratings, and Charts

As we end the first week in December, stocks picked up right where they left off in November. Investors continued the rotation into more cyclical stocks, pushing the S&P up 1.7% for the week. The market seems to be shrugging off soaring COVID-19 cases and negative employment numbers in anticipation of the vaccines and a potential stimulus deal.

This cyclical trend looks here to stay, but just in case, I have three stocks that should perform well whether this rotation continues, or if investors get nervous and switch back to pandemic winners. This includes financial stocks Visa Inc. (V), Mastercard Incorporated (MA), and MarketAxess Holdings, Inc. (MKTX).

But first, let’s take a step back to see how the broader market has performed, and I will follow that up with more insights on the stocks I mentioned.

Market Commentary

On Thursday, the market saw pressure after learning that Pfizer (PFE) was dealing with supply-chain issues that would impact the vaccine deliveries this year. PFE and BioNTech (BNTX) now plan on shipping 50 million vaccines by year-end, instead of the 100 million they had previously expected. Even so, investors are still hopeful that the vaccines will prop up the economy, evident from the rotation in cyclical stocks such as energy and financials.

Stocks hit record levels during Friday’s trading session, even as the market received disappointing job creation results for November. The Dow Jones Industrial Average was up for the fourth day in a row, mainly driven by House Speaker Nancy Pelosi’s announcement that she sees momentum in ongoing stimulus talks with Senate Majority Leader Mitch McConnell.

The U.S. Labor Department’s November jobs report reflected the slowest growth rate since April’s pandemic-induced drop in employment. Non-farm payrolls grew by just 245,000, which missed the estimate of 460,000. This was due to soaring COVID-19 cases and business restrictions.

Market Outlook

While most investors are optimistic about the COVID-19 vaccine, I am still concerned with soaring cases and the recent jobs report. Job growth has slowed considerably, and while the unemployment rate was slightly lower at 6.7%, the labor force has shrunk.

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