Covid-19 company sector winners and losers By cioreviewindia Team

Covid-19 company sector winners and losers

cioreviewindia Team | Tuesday, 18 May 2021, 09:07 IST

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Covid-19 company sector winners and losersThe Covid-19 crisis has triggered economic turmoil that has impacted many activity sectors. While the sanitary and economic crisis is far from over, there are many trading opportunities to take advantage of, as there are different company sectors that have emerged as winners. Still, markets can be volatile and trigger wild market movements, which can push unprepared investors to make bad trading decisions, as highlighted by Morningstar analysts:

"It was February 2020, that the stock market plummeted. The COVID lockdowns followed. One year later, we are still feeling our way out of this pandemic, but the market has made a full recovery and then some. Still, the movements of this year reminded us of the pain and uncertainty of market crashes. Are these kinds of drops normal? Was anyone ready for it? What should an investor do now to prepare for the next crash?". 

To better face volatile times, rebalance your portfolio and pick discounted stocks, you need to remember to consider your financial goals before deciding anything. So, whether you’re using share trading apps to trade stocks over the short-term, or you’re using brokers that offer non leveraged financial products to buy stocks over the long term, always keep in mind your financial goals and the length of your investment horizon - especially during volatile times.

To take advantage of what this crisis has offered in terms of investment opportunities, you also need to have a look at which kind of companies have been the winners and the losers of the Covid-19 pandemic and the growth perspective of these stocks.

Covid-19 company sector winners

While the Covid-19 might have been a struggle for some companies, others have seen a rise in revenue thanks to the Covid-19 pandemic - especially companies in the technology, communication, e-commerce, pharmaceutical, and healthcare sectors.

So how and why did these companies better perform than others during Covid-19? Mostly because they could provide relevant solutions or innovative ideas to adapt existing operating and business models to new requirements and needs.

Having to stay home and work or study remotely certainly presented challenges, but online conferencing, knowledge-sharing and online learning platforms filled in the gaps, becoming vital from the very beginning of this crisis.

Delivery, entertainment and e-commerce companies also benefited from these hard times, allowing this new way of living to be more bearable.

The importance of hygiene to slow down the spread of the coronavirus, as well as the competition to find a vaccine against the Covid-19 virus, also supported pharmaceutical and healthcare companies. 

Covid-19 company sector losers

According to the Global Crisis Survey 2021 from PwC, "more than 70 percent of respondents said their business was negatively impacted by the crisis and 62 percent used a crisis plan in their response to the pandemic". With confinement measures and travel bans, some companies struggled to stay afloat and required huge efforts to pull them through.

Airlines, trains, cruise ships, tourism, entertainment, hospitality, retail, oil and gas; and cinema are among the sectors that suffered from the Covid-19 pandemic.

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