Which stocks have rallied the most during coronavirus?
The stock market is facing unprecedented volatility. Some analysts suggest that it's too early to start buying shares butwhile others disagree. No-one can say for certain which direction stocks will go; these are investment ideas only and should not be taken as financial advice.
Not many Aussie stocks have escaped unscathed since the market began spiralling downward in February, so it's worth taking a look at those few standouts that have bucked the trend.
There's no doubt the last few months have been a wild ride for investors. Despite the S&P/ASX200 recovering admirably in recent weeks, the benchmark index is still down by more than 23% from its peak on 20 February.
With businesses shut, record unemployment levels and an impending global recession on the cards, a broad drop in stock prices is to be expected. Despite this, there are around 40 Aussie stocks (with market caps over $500m) that have netted positive returns amid the market crash, including several that have hit 52-week highs, according to Bell Direct data.
There are a few themes that stand out among the best performers here:
- Technology. Numerous IT stocks have benefited from the working-from-home culture
- Gold. While volatile, gold stocks often rally during a recession
- Healthcare. Healthcare stocks have been among the best performers during the pandemic
The following is a list of the top performing ASX stocks since the market downturn began on 20 February to 8 May 2020 according to data sourced using Bell Direct’s Strategy Builder tool.
To avoid the typical volatility of penny stocks, we excluded ASX stocks with market caps of less than $500m. These are not recommendations.
All below data is correct as of 8 May 2020
1. Kogan.com Ltd (ASX: KGN)
Kogan.com is an Australian retail and services company offering consumer goods, electronics, broadband and insurance products. Its brands include Dick Smith, Ovela and Fortis.
- Trading 68% higher since 20 February
- Retail and trade services stock
- Net profits grew 20% in 2020 first-half results
- Dividend per share of $0.16 (May 2020)
2. Bubs Australia (ASX: BUB)
Bubs is an infant food and formula company with exports to China, South-East Asia and the Middle East.
- Trading 41% higher since 20 February
- Food and distribution services sector stock
- Australia's largest producer of goat-milk products
- No annual dividend
4. Pushpay Holdings (ASX: PPH)
Pushpay is a technology company that offers a popular mobile donation collection app used in Australia, New Zealand, the US and Canada.
- Trading 35.4% higher since 20 February
- Technology services sector stock
- Annual revenue up 32% from previous year (May 2020)
- No annual dividend
5. AngloGold Ashanti (ASX: AGG)
AGG is a major gold mining company with numerous operations across Africa, Australia, the US and South America. It's currently the world's third-largest gold miner.
- Trading 31% higher since 20 February
- Precious metals sector stock
- Gold companies sometimes outperform during recession
- Annual dividend of 0.03 per share (2020)
6. Mesoblast (ASX: MSB)
Mesoblast (MSB) is an Australian biotech that offers treatment for inflammatory ailments and cardiovascular disease. In March, it announced it was working on a treatment for sufferers of COVID-19.
- Trading 26% higher since 20 February
- Healthcare and biotechnology sector stock
- Trials underway for COVID-19 treatment
- No annual dividend
8. NextDC Ltd (ASX: NXT)
NextDC is an Australian data centre operator that helps companies outsource data and cloud networking solutions.
- Trading 21% higher since 20 February
- Technology services sector stock
- One of Australia's fastest growing tech stocks of the last decade
- No annual dividend
9. Appen (ASX: APX)
Appen is a technology company that specialises in data solutions, machine learning and artificial intelligence in Australia and the United States.
- Trading 20% higher since 20 February
- Software services sector stock
- Market darling and WAAAX stock
- Annual dividend of $0.1 per share (2020)
10. Evolution Mining Ltd (ASX:EVN)
Evolution Mining is one of Australia's largest gold mining and exploration companies and the third-biggest listed gold miner on the ASX.
- Trading 20% higher since 20 February
- Precious minerals and mining sector stock
- Gold sector companies often outperform during recession
- Annual dividend of 0.13 per share (2020)
11. Pro Medicus (ASX: PME)
PME is a healthcare equipment and technology company that specialises in radiology systems. It offers services in Australia, Europe and North America.
- Trading 20% higher since 20 February
- Health technology sector stock
- 80% of sales offshore so currency fluctuations buffered
- Annual dividend of $0.1 per share (2020)
12. Fisher & Paykel Healthcare (ASX: FPH)
Fisher & Paykel Healthcare Corp is a designer and manufacturer of respiratory care medical device products.
- Trading 17% higher since 20 February
- Health technology sector stock
- Respiratory devices in high demand due to COVID-19
- Annual dividend of $0.24 per share (2020)
14. The a2 Milk Company (ASX: A2M)
A2M is a dairy product distributor that specialises in A2 milk protein operating in Australia, New Zealand, the US, Asia and Europe.
- Trading 14% higher since 20 February
- Consumer dairy sector stock
- Baby formula business potentially "recession-proof"
- No annual dividend
15. Australian Ethical Investment Ltd (ASX: AEF)
Australian Ethical Investment is an investment manager and superfund provider with a focus on sustainable and ethical investment options.
- Trading 14% higher since 20 February
- Financial sector stock
- Half-year net profits up 40% since year before (Dec 2019)
- Annual dividend of $0.05 per share (2020)
Buy shares through an online broker
To buy shares, you'll need to find a broker. You can use the table below to compare online brokers (also known as share trading platforms) available in Australia.
Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involve substantial risk of loss and therefore are not appropriate for all investors. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.
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