The major Q1 2020 winners and losers thus far in the year have been a reflection of the current Wuhan virus in China. With the curbing of international travel from the heavily populated China region, we are seeing major pullbacks in basic materials, industries that are supported by basic materials, and consumer goods which may be impacted by the virus.
Tankers have been hit the hardest as of the beginning of the year, with companies like GasLog Partners and Scorpio Tankers getting hit as much as 71% into the red. Of the sector, a standout has been Teekay Offshore Partners, who is actually +.32% on the year so far. A large outlier compared to the rest of the lot. Another outlier is Capital Product Partners LP, who is only down 7% on the year so far.
Having no idea how long this virus will continue, it is hard if not impossible to say how far these stocks will continue to fall. In the words of Jesse Livermore, a stock is never too low to short.
On the opposite side of the coin, there are many outperforming industries thus far this year. The overall market, along with the Nasdaq 100 are up 5% and 10% respectively, even in the face of unknown horrors.
The major outlier among the group is residential construction, up more than 17% for the year. Leaders within the category consist of D.R. Horton, up more than 17%, Taylor Morrison Home Corporation, up a staggering 27% and Lennar Corporation, up more than 25%.
In addition to residential construction, it is no surprise that healthcare stocks have also been soaring, in response to the Coronavirus outbreak. Specifically drug wholesalers, home healthcare and specialized health services.
We will take a look back to see the Q1 2020 Winners and Losers in the second quarter coming soon. In the meantime, keep a lookout for signs of the Coronavirus easing to see oil and travel rebound.