Stocks for after coronavirus
Boris Johnson has announced a plan to get out of lockdown. Is now the time to invest in hospitality?
After a year of working from home, DIY haircuts and Joe Wicks home workouts, Boris Johnson has announced a roadmap out of lockdown. Soon enough we’ll be sitting in pub gardens sipping cold pints. But what does it mean for the stock market?
The hospitality sector took a battering in the coronavirus stock market crash of 2020 and, on the whole, it’s not seen much recovery since. But with the world (or at least the UK) opening up again in the coming months, should we expect to see these stocks climb back up again?
What’s on the roadmap?
On February 22 2021, Boris Johnson announced the details of the government’s roadmap out of lockdown in England, starting with schools reopening on March 8.
Some key dates on the roadmap include:
- March 8. Schools re-open
- March 29. Rule of six – 2 families will be allowed to meet outside, including gardens. Outdoor sports facilities reopen.
- April 12. Pubs reopen (outdoor only), non-essential retail, hairdressers and gyms reopen.
- May 17. Pubs and restaurants open indoors, most outdoor restrictions will be lifted, subject to a limit of 30 people.
Which stocks might bounce back?
We can’t say for sure which stocks are going to bounce back, but here are some that suffered some losses in 2020 and might see some growth in 2021.
ITV is the TV series behind celebrities being covered in creepy crawlies on I’m a Celebrity Get Me Out of Here, keeping up to date with the word on the street with Coronation Street and Saturday nights in with our favourite TV duo on Ant and Dec’s Saturday Night Takeaway.
Cineworld is the world’s second largest cinema chain. Cineworld’s success relies on the production of films to resume. A few films were released during lockdown, including Warner Bros’ Wonder Woman 1984 and Disney Pixar’s Soul which it is likely to show while awaiting new releases.
Diageo is an alcohol company based in London. It’s the second largest distiller in the world and the world’s largest Scotch whisky producer. Of course, it benefits largely from pubs, restaurants and bars being open.
JCDecaux is an advertising company that operates in more than 75 countries. It’s behind a lot of the electronic advertising boards you see at bus stops, in airports, at shopping centres and on the underground.
Luxury travel company InterContinential has more than 180 locations worldwide. It’s hoping that with the latest vaccine developments, travel will resume in 2021.
American Airlines is a major airline in America. It’s the world’s largest airline by fleet size and passengers carried. It’s hoping that international travel will resume in 2021 so it can take to the skies again.
Norwegian Cruise Line
Norwegian Cruise Line is the third largest cruise line worldwide by passengers. It’s hoping to set sail again in 2021 after the rough seas it encountered during the coronavirus pandemic which dropped all anchors. It’s hoping to sail the seas again in 2021.
International Airlines Group
International Airlines Group is the parent company of Aer Lingus, British Airways, Iberia, Level and Vueling, some of the largest airlines in Europe. It flies its 598 aircraft to 279 worldwide destinations and carries around 118 million passengers each year. Like Norwegian and American Airlines, it’s hoping to take to the skies in 2021.
Revolution Bars Group
Revolution, which has been trading since 1996 has more than 48 bars across the UK located in town or city high streets. It attempts to make nights out classy with its premium vodka based cocktails, mainstream “feel good” music and classic food offerings.
Its success in 2021 solely relies on pubs, bars and nightclubs reopening.
A night out at “Spoons” was the norm pre-pandemic for its cheap food and drinks. Wetherspoon chairman came under scrutiny in 2020 when he rejected government advice. The pub, which is known for converting unconventional premises into pubs reported its first loss in 36 years in October 2020.
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