Time is running out for Congress to approve the next coronavirus stimulus package with Election Day just about a month away. The next package, if approved, would likely include coronavirus stimulus checks. Several reports have said that many people used their first stimulus checks to buy shares, and many would likely use their second check for the same as well. If you also plan to use your coronavirus stimulus check to buy shares or stocks, then detailed below are a few suggestions (not investment advice, speak to an investment professional before proceeding).
Coronavirus stimulus check to benefit these 2 stocks
The first stock that you might go for is Amazon. Since the start of the pandemic, people have been hesitant to go out of their homes. Even though businesses are slowly reopening, people still rely on Amazon for their shopping needs, including essentials.
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One proof of this is that Amazon’s revenue increased by about 40% in the latest quarter. Also, the company bumped up its grocery delivery capacity by 160% in that quarter also. This helped the company to up its grocery shopping by about 300%. With cases still significantly high and many restaurants still closed, Amazon should continue to witness a surge in grocery shopping for the foreseeable future.
Another share that investors could go for with their coronavirus stimulus check is Home Depot. This company has benefitted from the lockdown as well. People stayed at home, and thus, had more time to notice and take care of improvement needs or items needing replacement.
Moreover, people working from home also created additional demand with some setting up full offices in their home. Such a trend is directly benefitting Home Depot. Another point in favor of Home Depot is that the company is in the process of upgrading its capabilities. For its most recent quarter, the company posted revenue growth of 23.4%, the highest since 2002.
Stocks and the next stimulus check
Apart from these two, there are two more shares that you could go for with your coronavirus stimulus check.
The first stock is Walt Disney Company, which is trading at about 12% less than the 2020 level. Disney’s Disney+ streaming service, which was launched in late 2019, saw more downloads in the past few months. The subscription service has already hit its intermediate-term target of 60-90 million subscribers by 2024. Moreover, once the pandemic gets over, Disney will have all its previous revenue generators such as theme parks and film studios, back.
The second stock is Goldman Sachs, which has done a great job by developing the Marcus savings and loan platform by entering into the credit card business with the Apple Card. Goldman Sachs also recently came up with small business lending partnerships with Amazon and Walmart.
Moreover, some parts of Goldman Sachs’ investment banking business performed better at the time of the volatile markets, notes a report from Motley Fool. For instance, the company’s general investment banking revenue in the second quarter was its best ever.
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