London, England, 2 June 2021, ZEXPRWIRE, The current world of existence necessitates being prepared for the most extreme and unforeseen drops. While people try to adjust to the new standards of living, investors search for resilient financial markets to invest in through these times.
Evermore analysis is being conducted by Victoria-Coins analysts to examine bear markets and how stocks have responded (in the past) and futuristically intend to retaliate to the stock market’s new volatile dynamics triggered by the pandemic.
Coffee – Human Fuel
The average American drinks almost three cups of coffee a day which totals to 62% of the population fond of having coffee every day and Starbucks might just be responsible for the 50% of that proportion.
During the initial outbreak of the pandemic, February to March 2020, Starbucks finances shook to the core. The company understood that this was a time to make sure it sustained its worth and was quick to shift its focus on online buying and introducing its very own smartphone app that offered takeouts and deliveries. It also reduced its investment spending, halted equity repurchases and suspended its capital spending which gave the company the push it would need a year from then.
It’s May 2021 and the business has already recovered from its finances last year and is now enjoying even higher sales that are resulting in an 11% increase in net revenues. Though the transactions were slightly smaller, the aggregate fare increased by 19%. Moreover, the net profits and return on equity are now more than doubled with little to no competition. The company also offers Starbucks Rewards for loyal customers and continues to grow its popularity with conversions increasing to almost 18% one year at a time amounting to a twenty-three million fan base.
So, when the next bear market hits, remember coffee is part of the American lifestyle and they will not give up or move to alternatives easily; making this the best stock investment for you.
Apple – The Tech Giant
When looking at resilience during bear markets we cannot simply ignore the fact that Apple powered through the most recent drop. It was forecasted that the company was about to see its worst nightmare but it managed to perform surprisingly well. Just like all global businesses, Apple was forced into closing down all its distribution stores when the pandemic started. While the company tried to resist the complete shutdown of stores, it was not left with much choice given the healthcare guidelines issued by governments. Loyal customers again had to turn to online Apple stores. However, by March 2021 the company was able to manage and open almost all its retail outlets and regain its productivity. But given the past year of extreme uncertainty and great confusion towards the new normal, Apple still managed to get its fiscal 2020 revenue to move up 1%. The EPS increased by 4%, owing primarily to the company’s current share repurchase scheme.
The speed at which Apple made its comeback can only be exemplified by its performance in the second quarter of the fiscal year with revenues running up to 54% increase with the help of launching of new products. The work from home situation further pushed the Mac sales and services to transcend new highs while simultaneously gaining double net revenues.
Apple has done all that you ask for when we talk about bear market investment. The company sure knows its potential and does not shy away from putting up a fight.
Disney – The House of Mouse
Disney makes a huge chunk of its money from its theme parks across the globe and its blockbuster films. With the pandemic in existence, and the absence of crowds due to the immediate lockdown worldwide, Disney had to alter its business operations quickly before the collateral could befall the company. To Disney’s good fortune, the company had just launched its digital platform back in November 2019, Disney+. Seeing the upward trend in online streaming investors were keen to get operations rolling in full swing with the digital platform and gaining back its audience. Much to the company’s swift transfer, the platform gained around 100 million viewers within less than a years’ time while giving Netflix a run for its money.
Nonetheless, Disney’s financial statements did get hit harshly. The second-quarter finances demonstrated a 13% plunge in yearly income whereas the operating income only improved by 2%. Though this could appear to be a devastating outcome, it is a substantial transformation given the intensity of the pandemic, where sales fell 42% per year and division gross margins fell 7%.
However, Disney needs to be on your potential bear market investment list due to its unhesitating recovery and promising future of resilience in the upcoming times.
Disclaimer: Our content is intended to be used for informational purposes only.
It is very important to do your own research before making any investment based on your own personal circumstances.
You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.