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Today, we are going to share with you some stocks that will continue to rise out of the pandemic while being supported by strong fundamentals.


Mainly, we want to look at the cyclical industry. This includes consumer cyclicals/discretionaries, information technology, and construction. These are the three industries that we will be looking at today.


Consumer Discretionary:

Johnson Outdoors

Camping has gotten a huge boost from the pandemic. Johnson outdoors owns and operates all of the dominant companies in camping equipment. This includes the famous minn cota shallow water engine, renowned through the industry for its durability. Hummingbird has its own technology for fish tracking. Eureka is dominant in camping equipment and especially stove cookers.... you get the point. Johnson outdoors owns all of these solid, easy-to-understand companies while having great fundamentals.


Before we get to that, however, we must examine the macro- direction of the camping industry for the next few years. We need to be sure that this trend isn't just a one-timer due to the pandemic. As a Gen Z myself, I can safely say that camping culture has largely expanded throughout various western communities. The camping demographic has become increasingly mult-ethnic, with large market potential there as immigrants continue to pull in.



Furthermore, the generational age group for campers seem to be younger people, this trend will project into the future, where many young people my age will become campers. Going along with the previous trend of more multi-ethnic camping, more non-white young people are camping.




All in all, as long as the company has good fundamentals, we should expect further growth in years after the pandemic. The stock has largely fallen down since its highs due to people pricing in a drop in camping. This is, in my opinion, a great opportunity to invest in the stock.


Due to climate change and overfishing, the fishing sales will likely go down. However, everything else will likely increase. Very little debt and a good current assets account will ensure stability after a post-pandemic dry-out of campers not needing to buy equipment.



Trading Strategy


Ease into the diverging Rsi and support line for now. However, if the stock continues to go down, buy at major areas 100 and 90 dollars for better value, as a post-pandemic slump might entail for their sales. However, after the slump is over, this is a very good company to put money in.


IT Stocks

Genpact



Genpact is a financial accounting and financial services firm. It serves many companies, the main one being general electric. However, GE does not seem to be doing too well, but this won't be a problem. They are quickly diversifying into other streams of revenue other than GE.

Fundamentals


Fundamentals are looking very good, currently it has decent value-price point. We are, however, mainly looking for growth here. The market for these types of services are huge. Genpact, with their great work-culture and leadership could potentially take over more parts of the market.

Procore

Procore is a great software IT firm. They do project management for mainly construction. From the top-down approach, we know that construction is going to boom in the next few years, as covid ends and extra stimulation from the 1 trillion dollar infrastructure stimulus packege that congress recently bipartisan passed. In this company, we are looking for growth, not value.


Construction professionals like procore more than Autodesk, their main competitor, for construction management. This is mainly due to the connectivity features on the platform, allowing for more efficiency and collaboration. Here's why this company still has tonnes of room to grow.



We are looking for procore to expand internationally, as US construction has stagnated over the past years, and will continue to do so after COVID is over. International expansion is a great way to outcompete companies like Autodesk. They will likely do this through better customer service and software integration, as they already have. As of this June, they are currently expanding into the ASEAN countries in southeast Asia.



Strategy:

Ease in, buy dip




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