Our country, and 168 others around the globe, have been invaded.
And one enemy, called COVID-19, has the world marshalling resources to combat it. In fact, President Trump called himself “a wartime president” on Wednesday.
This war is not being fought on battlefields with guns and tanks, but in hospitals, schools, and homes with personal protective equipment and disinfectant.
Lots of disinfectant.
And chances are if you don’t have enough disinfectant products in your house, you’ll have a tough time finding them on the shelves.
And that’s where today’s stock recommendation is based on – it’s another story of stock market haves vs. have nots.
Coronavirus Shopping Trends Are Boosting this Stock
Most companies are revising earnings estimates down due to the impact of COVID-19, and others have suspended giving any earnings guidance.
But on the other side of the Reality Gap, there are a few companies that just can’t make product fast enough.
I have already helped some friends with some of our spare toilet paper. But around my hometown in Delaware, disinfectant wipes, bleach and even plain old rubbing alcohol (isopropanol for my chemically curious friends) are equally hard to find.
Coronavirus sensitive shopping items are in such short supply that political cartoonist have taken up the cause:
So companies that make these products are running full out. And unlike some less fortunate businesses these days, these companies have more orders than they can handle.
And that’s why companies like Clorox (CLX) have thrived during the age of COVID-19. Here’s the chart of CLX:
This was a strong stock in a strong sector that has just kept chugging along as its product lines fly off the shelves – if they aren’t grabbed off the shipping pallet while being restocked.
Today we’ve seen profit taking in lots of names that have done well in recent weeks. And that’s just the opportunity we need to buy the maker of this prime coronavirus weapon.
And even with this small drop, CLX has maintained cash flow into the stock. Use this pullback opportunity to buy CLX to help your portfolio weather this market storm. Use a 15% trailing stop and a sell your stock when it hits a 30% profit.
Great trading and God bless you,