A daily stock analysis based on stock market today
  • Daily Roll
  • YouTube
  • Podcast
  • Investor Hubs
    • Starter Investors Hub
    • Dividend Seekers Hub
    • The Risk Hub
    • COVID-19 Investing Hub
  • Sign Up

How to use the COVID-19 Testing Kit list to diversify

9/12/2020

 
Hey folks, it's Karen, Head of Data Science at Stock Card. This week I used the COVID-19 Testing Kit and meshed it with one fundamental indicator and two technical indicators using the new Filter function on the Discover page, used to result to come up with stock on my Watchlist. Let me share with you how I went about this screening.
Picture

Steps to follow

Visit Stock Card's Discover page, and follow these steps:
  1. Type in “testing” in the search bar underneath “Industry, Sector, and Keywords.
  2. ​Stock Exchange -  NYSE or Nasdaq.
  3. Past investment return - Good: outperformed the market.
  4. Chaikin Money Inflow - Good: Bullish 20-day money inflow.
  5. Relative Strength Index - Stable (in between 30 and 70)  or Bearish (less than 30) RSI. Note that RSI is a contrarian indicator. With an RSI less than 30, a stock is considered “oversold.”  When this status is combined with positive 20-day Chaikin Money Flow, it is a signal that a trend reversion is likely to happen.
​
​If you are a Stock Card user (on our free Starter plan or premium plans), you can see the final results by clicking on this link. It is noteworthy that the results may vary day to day due to price changes in the stocks included in the collection. As of the closing on Friday, September 11, 10 stocks are included in the screening results. Click to view the results, or continue reading.
Picture

Using filter results

The overall market has been quite volatile since the indices (e.g., Nasdaq-100, S&P 500) peaked on September 2. In particular, the rally of tech stocks fueled by Softbank has receded, and cautious investors may be inclined to refrain from “buying the dip” in the FAANG and tech stocks resulting in drastic declines in some of Stock Card most popular stocks. What other stocks can investors consider to diversify their portfolios away from the technology sector? Investing in the stocks in the COVID-19 Testing Kit collection could be an excellent way to get exposure to the biotech and healthcare sectors and diversify one’s portfolio. 

Let’s take Thermo Fisher Scientific Inc (NYSE: TMO), one of the ten stocks in the filtering results, as an example. 
Picture

Add to watchlist

The chart below shows that TMO has outperformed the S&P 500 index throughout the year and is very close to the Nasdaq-100 (NDX) Year-to-Date returns daily based on returns. In the most recent pullback since Sept 3, as both S&P 500 and Nasdaq have been laggard, TMO has shown increasing strength, which is reflected in the daily returns. This may qualify TMO as a good addition to your watchlist.
Picture
View TMO's Stock Card

Picture
This new brokerage app lets you start slow by investing any amount of money you'd like, and could be a good tool for you to try investing in the COVID-19 testing kit stocks!
Check it out ...
Promotion.

Introducing COVID-19 Testing Kit stocks list

9/11/2020

 
Investing in biotechnology companies that focus on the fight against COVID-19 involves understanding four main components: diagnostics, cure, vaccine, and distribution. More than 100 companies are competing in the vaccine development race, and several others are already getting ready to produce and distribute it. However, to contain the spread, diagnostic testing is an important frontier as the vaccine development is. As always, what becomes a society's priority tends to become a noteworthy investment too. This week, we turn our focus on COVID-19 Testing Kit stocks to give StockCardians and our broader community a starting point for their fight against COVID-19, investing-style.
Picture

Research methodology

The overall process of diagnostic testing depends on several different products such as swabs, glass vials, RT-PCR testing machines, a laboratory apparatus most commonly in DNA segmenting via the polymerase chain reaction (PCR), electronic or disposable pipettes, filter tips, and refrigerated microcentrifuges. To those products, one can add services such as test sample transportation and imaging centers. To build a robust list of companies involved in manufacturing testing kits and distribute diagnostic testing, we first referred to Stock Card’s proprietary market database to look for diagnostic testing companies. We then validated the list with holdings of exchange-traded funds such as the GERM ETF, which seeks to track the Prime Treatments, Testing, and Advancements Index.

Main challenge

Because of the priority and popularity of the COVID-19- related topics, almost every pharmaceutical, and healthcare company associate its operations with developing a testing kit, vaccine, or cure. However, the tricky part of the research was to screen for companies that are much more committed to finding the cure, assisting with diagnostics, and producing materials needed for various efforts in the COVID-19 ecosystem and are achieving early success. Our analyst team spent more than two weeks evaluating the list qualitatively, and the result has turned out to be a reliable yet robust list of companies worthy of your attention.

Risk and opportunity

As always, when you invest in companies without a proven track record of product and financial success, it involves risk. The risk is exacerbated when dealing with biotechnology companies in the COVID-19 ecosystem of vaccine and testing kits developments and has no other revenue sources. Your investment success would have two possible extreme outcomes. Either the company succeeds, and you win with it. Or, despite all the efforts and stock price volatility, the investment loses all its value. A binary result is the most typical risk you'd need to be ready to face, should you choose to invest in the COVID-19 testing kit stocks. The evidence of such binary outcome is visible in the rapid decline of the stock prices of testing kit frontrunners such as Quidel, Hologic, and Quest Diagnostics, since the launch of the low-cost testing kit by Abbot. 

​
While that's a substantial risk, it may also mean an opportunity. It is worth evaluating some of the beaten-down testing kits stocks to find well-managed companies that are not purely reliant on a testing kit's success and can recover into more reasonable valuation in the future.

Results

After the thorough research and curation of the list, we identified more than 80 companies involved in producing the COVID-19 testing kits and providing diagnostic testing services. You can access them directly by clicking on the below button. Alternatively, type in "COVID-19 testing kit" in the search bar, and you get the list.
View COVID-19 Testing Kit list of stocks

Picture
​This new brokerage app lets you start slow by investing any amount of money you'd like, and could be a good tool for you to try investing in the COVID-19 testing kit stocks!
Check it out ...
Promotion.


    RSS Feed


    Archives

    December 2022
    September 2022
    July 2022
    February 2022
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    February 2021
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    January 2020
    October 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017

    Categories

    All
    Battle
    Education
    ETF Investing
    How To Invest
    New Podcast Episode
    New Portfolio
    Portfolio Update
    Starter 2020
    Stock Card VIP Pick
    Stock Lists
    The Daily Hype
    Update
    Watchlist Worthy
    Winners And Losers

© 2017 StockCard.io. All Rights Reserved.
​​
Disclaimer: StockCard.io is not, neither operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on StockCard.io and Stock Card Weekly represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The Stock Card team may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall StockCard.io be liable to any subscriber, visitor, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on StockCard.io, or relating to the use of, or inability to use, StockCard.io or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way.
  • Daily Roll
  • YouTube
  • Podcast
  • Investor Hubs
    • Starter Investors Hub
    • Dividend Seekers Hub
    • The Risk Hub
    • COVID-19 Investing Hub
  • Sign Up