How to Pick Stocks that Could Perhaps Survive a Crisis

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The growth of online services has opened many opportunities for businesses to flourish despite the Covid-19 pandemic that shut down the economy in 2020. Identifying these opportunities could be integral to the success of online stock trading.                                                                   

Etsy ($ETSY)

E-commerce company Etsy operates in a lucrative segment of the industry, selling gift ideas such as handmade products, vintage items and custom-made stuff. Apparently, these products are not generally found in other online destinations. As a result, Covid-19 did little to hamper the company’s revenue growth:            

• For Q1 2021, Etsy earned revenue worth $550,646, a year-over-year growth of 141%. Of this, revenue from its marketplace amounted to $413,642. The rest was accounted for by services. 
• Q4 2020 saw Etsy report Q4 net income worth $148.5 million, a massive year-over-year growth of 374.7%. Revenue was reported at $617.4 million, beating Refinitiv estimates of $516 million.
• Q3 2020 revenue was reported at $451 million, a significant 128% growth. Active buyers were reported at 69.9 million, a 55% growth.    
• For Q2 2020, Etsy reported revenue worth $428.7 million, a year-over-year growth of 137%. Net income was reported at $96.4 million. 

PepsiCo ($PEP)

PepsiCo is a giant in consumer packaged foods, and has many top brands in its arsenal. Though demand for its beverages declined during the Covid-19 pandemic in 2020, it saw increased sales for its prepared meal and snacks segments:     

• In Q1 2021, Pepsi earned net income worth $1.71 billion, compared to $1.34 billion in Q1 2020. Net sales experienced a 6.8% growth to hit $14.82 billion, beating estimates of $14.55 billion. 
• For Q4 2020, PepsiCo reported net income worth $1.85 billion compared to $1.77 billion in Q4 2019. 
• Q3 2020 saw PepsiCo report net income worth $2.29 billion compared to $2.1 billion in Q3 2019. The company had to deal with more expenses this quarter due to the Covid-19 pandemic, to the tune of $147 million.  
• In Q2 2020 Pepsi earned net income worth $1.65 billion, lower than the $2.04 billion earned in Q2 2019. Revenue was reported at $15.95 billion, beating expectations of $15.38 billion. 

Shift4 Payments ($FOUR) 

This Digital Payments company specializing in the restaurant industry announced its IPO in June 2020. The Covid-19 pandemic brought the hospitality industry to a near standstill, as a result of which Shift4 Payments saw revenue dropping in Q2 2020. From Q3 though, things started improving and the company began reporting year-over-year revenue growth into Q1 2021:   

• In Q1 2021 Shift4 reported total payment volume of $8 billion, a year-over-year growth of 30%. Revenue also rose 23% to hit $97.5 million. 
• During Q4 2020, Shift4’s gross revenue rose 4.3% year-over-year to $210 million as restaurants started reopening following the Covid-19 shutdown. Net loss was reported, however, at $21.7 million.   
• For Q3 2020 Shift4 reported a 11% growth in gross revenue to $214.8 million from just $193.8 million in Q3 2019. 
• During Q2 2020 Shift4 experienced gross revenue dropping 21% from $180.5 million in Q2 2019 to $141.8 million as a result of Covid-19’s negative impact on the restaurant industry. The company also reported net loss worth $75 million. 

DraftKings ($DKNG)

DraftKings operates in the fantasy sports field, offering cash prizes for players. It’s an online platform, and that explains why revenue grew 90% all through 2020 despite the Covid-19 pandemic:   

• For Q1 2021, Draftkings reported revenue worth $312 million, a humongous 253% growth from $89 million in Q1 2020.
• Q4 2020 saw Draftkings report revenue worth $322 million, beating Refinitiv expectations of $232.6 million.
• During Q3 2020, Draftkings reported revenue worth $133 million, 98% more than the $67 million earned in Q3 2019.   
• For Q2 2020, the fantasy company earned GAAP revenue worth $71 million and pro forma revenue worth $75 million. These are strong figures despite the effects of the Covid-19 pandemic. 

As is clear from the examples above, businesses offering online services and entertainment stand to gain when other business activities shut down. An experienced online stock broker can give you all the tools you need to make effective trades using such opportunities.