Join us on May 26th for Real Talk, a special Real Money webinar featuring reopening portfolio picks from Chris Versace, Stephen "Sarge" Guilfoyle and Ed Ponsi. Sign up for the webinar to see them discuss and debate their portfolios.
The COVID pandemic hit a number of industries hard as consumers sheltered in place and shifted how they interacted, shopped and consumed content. However, with vaccination levels rising and COVID-19 restrictions continuing to ease, the companies below are poised to benefit from a combination of pent-up consumer demand, Biden stimulus checks and the simple need to get out and once again be among other people as folks look to get back to their pre-pandemic lifestyles.
Each of the companies below have had various aspects of their businesses dry up as a result of the pandemic, but with the spigot now opening they are now positioned to deliver stronger second-half revenue, cash flow and EPS numbers compared to both the first half of 2021 and the second half of 2020.
Walt Disney (DIS) : Disney shares advanced considerably over the last year as its blew past subscriber expectations for its Disney+ service, but the reopening should lead to a rebound for its parks business as well as its movie box office facing one.
Cedar Fair (FUN) : Similar to Disney, the reopening will likely spur attendance levels at Cedar Fair's various parks during the critical summer season, driving favorable year-over-year revenue, cash flow and EPS performance.
Darden Restaurants (DRI) : Surveys point to eating out as one of two key areas where consumers are looking to splurge, and after more than a year odds are there is plenty of pent-up demand for eating out to chew through.
Ross Stores (ROST) : Those same surveys indicate buying new clothes is at the top of targeted consumer spending lists after wearing the same outfits on Zoom (ZM) calls over the last several months. Time to get something fresh and snappy while stretching those spending dollars as one can at Ross Stores.
Estee Lauder (EL) : Along with going out to eat and busting out a new wardrobe, consumers will want to look and smell good doing it. Estee Lauder's portfolio of personal care, grooming and fragrance products fit the bill and will have both consumers and investors looking and feeling good in the coming months.
Cantaloupe (CTLP) : The return of people to the office as well as students to schools should drive transaction volumes for unattended retail -- think vending machines -- higher in the second half of the year, spurring this company's revenue and EPS.
Coca-Cola (KO) : While the company's at-home business has been booming over the last year, it's the away-from-home business -- restaurants, bars, sporting venues and the like -- that should kick back into gear as consumers venture out and dine out.
Cinemark Holdings (CNK) : With vaccine levels rising and the return of movies to the box office, this company should see rising attendance levels and, more importantly, the return of consumer munching on those high-margin snacks and drinks.