COVID-19's most dire impact on the economy is its unique speed. In a matter of one quarter, the demand for some sectors of the economy has fallen to nearly zero. Take airlines as an example. Compared to last year, the number of travelers going through airport TSA has fallen by 97%. Therefore, the source of immediate revenue for airlines has dried down. The situation is no better for restaurant, entertainment, or retail industries. The impact is not as drastic in other industries and sectors. However, a 20% to 30% decline in the revenue of a payment processor and credit company is not unreasonable. It's a no brainer to screen your investment universe for companies with enough cash on their balance sheet to compensate for the lack of revenue without the need to borrow money to fund the day-to-day operations. Focusing on companies with a strong balance sheet would drastically increase the odds of success in the COVID-19 era.
What criteria did Stock Card use to populate this new collection?
Having a strong balance sheet is a combination of how much cash the company has at its disposal, how much liability or debt it has to cover, and whether the company has the resources to fund its operations without the need to borrow money or raise capital. We used the following nine criteria to generate the strong balance sheet collection:
The result of the above screening is a list of more than 250 stocks that you can easily access, play around, and pick and choose from and create your COVID-19 portfolio. Visit the Strong balance sheet collection.