The Top 2 Contrarian Stocks to Buy Right Now
The COVID-19 pandemic is having an effect on so many of the stocks trading these days, some more than others. For instance, the stocks for many of the biotech companies that are pursuing a vaccine for the coronavirus are having an amazing year. Novavax stock is up almost 4,000% and a tiny biotech with an oral vaccine candidate, Vaxart, is up almost 3,000%.
Many other stocks, however, have been slammed since COVID-19 hit. Think of all the restaurants that have been closed or are operating at a reduced capacity, the airline flights that have been grounded, the cruise ships that are stuck in port, or the hotels that remain nearly empty. Even some healthcare stocks have taken a hit related to the pandemic. After all, many biotech companies are not pursuing a COVID-19 vaccine. And some drug companies have been forced to delay clinical trials on non-coronavirus drug candidates because of the coronavirus.
While the market remains negative on certain sectors and individual stocks, this represents a potentially great buying opportunity for the contrarians out there. We know why the stock prices are down and we also know that COVID-19 is very likely a temporary disruption, not a permanent one. Thus, if the companies have enough cash to withstand this health emergency, business at these companies should eventually return to normal and the stocks should quickly bounce back.
Source Fool.com
