Stocks that may THRIVE thanks to a lockdown: Supermarkets, discount chains and even Pets At Home should be able to remain open
A handful of companies could benefit from the Covid-19 virus if the Government enforces a French-style shutdown on all non-essential stores, according to analysts.
Supermarkets, Marks & Spencer, convenience retailer McColl’s, discount chain B&M and even Pets At Home should be able to remain open, broker Peel Hunt said.
However their share prices, which have tumbled with the rest of the market since the coronavirus outbreak began to spread, do not reflect the advantage this will give them.
Supermarkets, Marks & Spencer, convenience retailer McColl’s, discount chain B&M and even Pets At Home should be able to remain open, broker Peel Hunt said
At the opposite end of the scale, WHSmith and Halfords may lose out.
The number of Post Offices located inside WHSmith stores could mean they stay open, Peel Hunt analyst Jonathan Pritchard said, but in general people will be driving less so Halfords was less clear-cut.
Pritchard added: ‘The direction of travel is towards a more draconian approach from the Government.
‘Clearly not all stores can close, and in France there is a list of outlet types that are allowed to open.
‘The key categories are supermarkets, pharmacies, banks, petrol stations and, amusingly, hairdressers.’
Analysts at Jefferies pulled out a list of the stock market ‘haves and have-nots’, or those companies with the strongest and weakest balance sheets.
At the strong end of the spectrum, and therefore most likely to be able to weather a coronavirus-related storm, was housebuilder Persimmon, Primark owner ABF, and telecoms company Spirent Communications. Among those listed in the danger zone was Domino’s Pizza and pub group Marston’s.