Stocks To Watch As COVID-19 Risk Triggers Massive Sell-Off

Canadian stocks continue to register lower lows in line with a sell-off wave that has gripped the global stock market in response to the spread of the coronavirus. The sell-off is showing no signs of slowing down as measures designed to curb the spread of the deadly virus continues to intensify concerns that the Canadian economy is slowly plunging into recession. Amidst the double-digit sell-off, Loblaw (TSX:L) and Cascades (TSX:CAS) and Co-Diagnostics Inc. (NASDAQ: CODX) have remained resilient even as investors continue to shun the equity markets.

Cascades Soaring Product Demand

Cascades (TSX:CAS) is one of the companies that continues to elicit strong investor interest as its products continue to arouse strong demand in the market. Concerns about the spread of the coronavirus has triggered a demand for the company’s products, some of which are crucial as COVID-19 continue to trigger lockdowns in big cities.

The tissue product producer, as well as paper towels, has seen an influx of demand for its line of products that have skyrocketed in recent weeks. People are stockpiling the products in numbers as the threat of forced hibernation or quarantine becomes a reality.

For investors looking to generate some returns amidst the spread of the Coronavirus, Cascades looks like an ideal pick in the Canadian stock market. The company is on course to register significant sales as people rush against time to stockpile necessary items.

Co-Diagnostics Inc. COVID-19 Test Kits On Demand

Co-Diagnostics Inc. (NASDAQ: CODX) is another stock that has continued to post some greens even as a blood bath continues to grip the global stock market. Analysts at Wainwright rate the stock as a buy with a share price target of $20 as the company continues to play a pivotal role in the testing of the Coronavirus.

The company has already started shipping its COVID-19 test kits to the U.S as well as international markets of Europe, Asia, and Australia. The company is seeing an increase in product shipments for its Logix Smart COVID-19, as authorities around the world try to get hold of the necessary kits for screen testing the virus.

The fact that the company’s test kit has already won the CE designation mark paves the way for it to be a standard of testing in European markets. The European and the U.S markets should provide an ideal market for the company to meet its sales targets. The company has close to $24 million in cash, which should allow it to fund all its operations and generate significant value in the process.

Loblaw Booming Grocer Business

 Loblaw (TSX:L) is another Canadian stock showing resilience amidst the uncertainty caused by the spread of the coronavirus. As more people are being encouraged to stay and work from home, the grocer has seen a spike in orders as consumers look to stockpile essentials.

Consumers have stopped spending on entertainment and experiences directing most of their funds on food and other necessary supplies the click and collect feature on offer with Loblaw continues to strengthen the retailer’s prospects in the industry, as consumers continue to explore ways of avoiding crowds and getting items promptly.

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This article by Money News National is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Money News National has no position in the stocks mentioned. Thank you for reading.

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