At the moment, there are 20,000 coronavirus cases with 452 deaths.
Cases have now been spotted in Hong Kong, Macau, Taipei, Thailand, Vietnam, South Korea, Singapore, Malaysia, Japan, Australia, France and the United States. Nepal has confirmed one case. Cambodia confirmed its first case, too.
The World Health Organization declared the virus a public health emergency of international concern. "The main reason for this declaration is not because of what is happening in China, but because of what is happening in other countries," WHO Director-General Tedros Adhanom Ghebreyesus said as quoted by CNN. "Our greatest concern is the potential for the virus to spread to countries with weaker health systems, and which are ill-prepared to deal with it."
Yet, it appears much of the chaos has now been priced in – as battered stocks rebound.
In fact, some of the biggest recoveries are being found here:
Royal Caribbean (RCL)
“If history is any guide, the weakness in Royal’s stock could present a compelling buying opportunity as consumers have been fairly quick to shrug off illness outbreaks in recent years,” says William Blair analyst Sharon Zackfia, as also quoted by MarketWatch. The cruise industry actually did better after the SARS outbreak and “more recent outbreaks such as Zika or Ebola have had no discernible impact on cruise demand.”
Analysts are advising that investors buy Nike, which is also taking a hit on virus fears. UBS just upgraded the stock with a buy rating. JP Morgan added it to its analyst focus list, adding, “We see the recent pullback as a multi-year buying opportunity,” as quoted by CNBC.
Starbucks also became an oversold opportunity on virus concerns. However, it’s just now beginning to rebound after gapping lower from $94 to $85. With patience, we may soon see a recovery back to $94 – and higher.