This year had been marked with turmoil for businesses across the world, but there are survivors. There have been winners too, with the likes of Amazon, Apple and Facebook bucking the trend and pushing the S&P 500 higher. Granted, a weighting in indexes has proven a market recovery, but there are still many left in ruin.
Out of these ashes, we’ve seen brilliance in some companies moving toward an e-commerce or omnichannel model, but still a recovery in cyclical stocks needs to take place to get the economy back on track. It’s no secret that companies have been digging into their books and scraping cash together to keep operating. Despite this race for cash, some actually are in a good position for when the economy turns, if it has not yet already.
With a potential solution to the virus on the horizon, there very well could be an inflection point for many of these firms. Lingering questions about how to get back to business or how to get people back into the stores are relevant, but as consumers primarily decide the market (demand side), the answer for business is obvious.
Considering all these setbacks, and many companies pulling down the revolver (loans from creditors), the worst may be behind us. By suspending operations throughout the pandemic, more companies relied on their cash reserves and loan facilities to float them through this operational apocalypse. There is a light at the end of the tunnel.
24/7 Wall St. has compiled a list of some companies that we think will not only survive this but have the potential to thrive as well. A cash base is good for any company, but if, and when, the market turns in your favor, this provides an excellent opportunity. Analysts, investors and Wall Street gurus seem to think the worst is over and companies that were beat up initially may be in a sweet position down the line.
Here are some companies we think have some real prospects for the turnaround.
GameStop Corp. (NYSE: GME), the counter trade has been played for years. Fewer games sold (on console) means less money. But a new generation of consoles might say otherwise. Sony and Microsoft might not hit on this based on margins. GameStop stock closed Wednesday at $8.98, in a 52-week range of $2.57 to $9.04. The consensus price target was $5.62.
Bed Bath & Beyond Inc. (NASDAQ: BBBY) is playing on a new generation of college kids. The basement might be the new college room, or whatever room. Either way, take your pick: parents financing is a cool pick for this stock. Bed Bath & Beyond stock last closed at $12.83 and has a 52-week range of $3.43 to $17.79. Analysts have a consensus price target of $10.85.
3M Co. (NYSE: MMM) was hit during the pandemic. Industrial stocks sold off incredibly with the stoppage of the economy. But what happens when we get back to business? 3M stock closed most recently at $169.51, in a 52-week range of $114.04 to $182.55. The consensus target is $164.67 a share.
Ford Motor Co. (NYSE: F) is a great competitor for the auto trade business. With everyone looking at Tesla, it’s hard to sell the competition short. Ford stock closed Wednesday at $7.02. It has a consensus analyst target of $7.66, and the trading range is $3.96 to $9.60 over the past 12 months.
Newell Brands Inc. (NASDAQ: NWL) is not a household name, but its products are. If you were looking to do anything in this pandemic, you were looking for something from this firm. Newell stock closed at $17.99, with a 52-week range of $10.44 to $20.99. Analysts have a $17.30 consensus target.