Advertisement
Canada markets close in 2 hours 35 minutes

  • S&P/TSX

    21,829.97
    +121.53 (+0.56%)
     

  • S&P 500

    4,987.60
    -23.52 (-0.47%)
     

  • DOW

    38,013.44
    +238.06 (+0.63%)
     

  • CAD/USD

    0.7279
    +0.0016 (+0.21%)
     

  • CRUDE OIL

    83.42
    +0.69 (+0.83%)
     

  • Bitcoin CAD

    88,218.70
    +1,133.05 (+1.30%)
     

  • CMC Crypto 200

    1,380.26
    +67.64 (+5.15%)
     

  • GOLD FUTURES

    2,413.00
    +15.00 (+0.63%)
     

  • RUSSELL 2000

    1,947.09
    +4.13 (+0.21%)
     

  • 10-Yr Bond

    4.6230
    -0.0240 (-0.52%)
     

  • NASDAQ

    15,384.79
    -216.71 (-1.39%)
     

  • VOLATILITY

    18.55
    +0.55 (+3.06%)
     

  • FTSE

    7,895.85
    +18.80 (+0.24%)
     

  • NIKKEI 225

    37,068.35
    -1,011.35 (-2.66%)
     

  • CAD/EUR

    0.6827
    +0.0006 (+0.09%)
     
MARKETS LIVE BLOG:

S&P 500 SLIPS BELOW 5,000; NASDAQ SINKS ON NETFLIX DRAG

Fed's Goolsbee says 'It makes sense to wait' before cutting rates

A COVID-19 Vaccine Could Be a Reality Soon: Where to Invest $3,000 Right Now

Sneha Nahata
·3 min read
Coronavirus 2019-nCoV Blood Samples Medical Concept

While it’s unclear when we can expect a vaccine against the novel coronavirus, the big pharma companies’ relentless efforts worldwide suggest that it could hit the markets soon. Yesterday, Pfizer announced that its vaccine candidate showed promising results in the late-stage trials, giving a significant boost to the stock market.

As we get closer to a vaccine, stocks or sectors hit hard by the pandemic could recover fast, thus providing opportunities for investors to gain big from the recovery. So, if you’ve got $3,000 to invest, consider buying these stocks while they are still low.

Recipe Unlimited

Recipe Unlimited (TSX:RECP) stock was hit hard, as mandated restaurant closures amid the pandemic took a toll on its sales and profitability. While the unlocking measures drove meaningful growth in its top line on a quarter-over-quarter basis, its system sales plunged 22.2% year over year in the most recent quarter, reflecting the negative impact of the COVID-19 pandemic.

ADVERTISEMENT

However, a COVID-9 vaccine means Recipe Unlimited’s corporate and franchise restaurants could recover fast and deliver strong growth. Meanwhile, sustained momentum in its off-premise system sales could further accelerate its growth and lift its stock higher.

Its off-premise system sales increased by 40.8% in Q3, reflecting a 23.9% jump in orders. Moreover, the trend in off-premise sales is expected to sustain in the coming years, thanks to its multiple delivery options and established tech platforms. Recipe stock is down about 15% year to date, despite the 12% jump on Monday and offers an excellent entry point.

Bank of Nova Scotia

Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is another TSX stock that should be on your radar for a post-pandemic world. A COVID-19 vaccine could lead to an uptick in loans and deposits volumes and drive a significant decline in the provisions for credit losses.

With an expected decline in provisions and continued momentum in its personal and commercial banking and wealth management segment, Bank of Nova Scotia’s bottom line could show substantial growth, which could drive its stock higher.

Further, investors are expected to benefit from Bank of Nova Scotia’s robust dividend payments. Bank of Nova Scotia offers a dividend yield of over 6%, which is safe and is likely to boost your overall returns.

Air Canada

Air Canada (TSX:AC) stock could be one of the key beneficiaries of the COVID-19 vaccine. Air Canada’s passenger volumes took a significant hit amid the pandemic-led travel restrictions. While its revenues plunged, net cash burn spiked, leading to large losses.

However, the reopening of the economy and restart of domestic operations helped Air Canada to report healthy sequential improvement across all parametres in Q3. Its net cash burn declined significantly on a quarter-over-quarter basis. Meanwhile, capacity and passenger load factors also improved.

Investors should note that a vaccine against the COVID-19 pandemic is likely to significantly boost the prospects of the airline stocks, including Air Canada. The airline company’s passenger volumes, net cash burn, and the bottom line are likely to show sharp improvement with people returning to the sky. Meanwhile, investors could benefit significantly from the recovery in its stock.

The post A COVID-19 Vaccine Could Be a Reality Soon: Where to Invest $3,000 Right Now appeared first on The Motley Fool Canada.

More reading

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends BANK OF NOVA SCOTIA.

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Motley Fool Canada 2020