While it is true that there has been a certain degree of volatility in the market in recent weeks, it is also true that investors who work with a longer-term window don’t have to bother about it to a significant degree. There are some big-ticket companies that suffered massively during the coronavirus pandemic but are now quite likely to make a strong rebound. Here is a look at three of them.
Disney is quite clearly one of the behemoths of the world of entertainment and has a plethora of offerings. However, the closure of its theme parks last year had hit the company hard. In addition to that, the company is a production giant as well and as long as it keeps being creative it will have a ripple effect.
A Pixar film can not only bring in money through ticket sales but also through merchandising and theme park attractions. The company has not recovered fully yet but it is showing signs of revival. In the last reported quarter, it generated revenues of $17 billion, and that reflected a year-on-year rise of 45%. Investors could do well to keep Disney on their watch lists if they are looking for long-term growth.
It is one of the biggest brands in the world and runs the world’s largest coffee chain. The company has managed to grow at a remarkable pace through product innovations and exemplary customer service. At the end of the second quarter, it had 33000 outlets in total and is keen to grow further.
While Starbucks did suffer during the coronavirus pandemic it rebounded strongly in the third quarter of this year and generated revenues of a staggering $7.5 billion. That worked out to a year-on-year rise of as much as 78%. The Starbucks stock has also beaten the market in the past five years and generated gains of 110%. Hence, it could well be a long-term winner that investors could look into.
Last but certainly not the least is another behemoth of its industry, Coca-Cola. While it is best known for its world-famous beverage, it is necessary to note that it operates a highly efficient and innovative business as well. In the past ten years, Coca-Cola has managed to generate pre-tax income of as much as 24.2% and that is considerably higher than its main rival PepsiCo, which generated pre-tax income of 13.3% in the same period.
Although Coca-Cola beverages are consumed at home, the company has managed to strike up partnerships with restaurants and entertainments venue all over the place. That has helped it in its growth path considerably and makes it a potential long-term growth machine.
