British Petroleum (BP)
Within the industrial sector, gas stocks have seen the largest crash in decades and are struggling to recover. British Petroleum is one of these companies suffering in particular with a 25 year low and a 41.4% drop in 2020.
Amidst the Covid-19 pandemic, oil demand has dropped drastically leading to fierce competition among the producers and a subsequent drop in oil prices. At one point in 2020, oil prices went negative, meaning that it cost more to produce and store oil than to sell it.
Therefore, manufacturers were paying to sell their own oil. Given that lockdowns are reemerging, the Organization of Petroleum Exporting Countries (OPEC) is losing patience with regards to production cuts. It is likely that the industry will not see the previous demand for many years to come.
3M (MMM)
One of the best and most well known companies in the industrials sector, 3M (MMM) is leading the industry with a 3% increase in share price for the year.
3M is a diversified manufacturing company that operates in safety equipment, household items, healthcare, and electronics. Even with the horrifying retail numbers created by the pandemic, 3M remains an extremely profitable company due to its diverse product portfolio.
The company is a notable selection due to the management’s focus on innovation. Famously, 3M places 30% of their capital into research and development (R&D), more than many other companies (even biotechnology companies).
Despite this extensive capital expenditure though, 3M stays profitable and has a very healthy balance sheet. 3M is the most durable of all industrial stocks and will likely remain the leader for many years to come.
Corsair Gaming (CRSR)
The Coronavirus completely changed how people spend their free time. While normal recreational activities cease to exist, the gaming industry has skyrocketed over the course of 2020. All aspects, including game sales, entertainment engagement, and consoles as well as accessories, have continued on an upward curve. Corsair Gaming is no exception, with well-known brands like Elgato, Origin, Raptor Gaming, and Scuf Gaming.
Corsair went public on August 21st this year, selling at $17 per share. Since then, the company has seen a 300.29% increase with a price of $51.05 per share on November 24th. Recently the stock has fallen and is currently $35.50 per share as of December 9th. Many believe this is a result of analysts lowering their perceived value of the stock, thus deterring investors from purchasing shares.
The company expects to generate an Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $200-$194 million. Additionally, the company looks to produce a full-year revenue of $1.65-$1.67 billion, leaving them with a revenue growth increase of 50–52% as of December 1st.
Corsair’s primary competitor is Logitech, a dominant company within the computer accessories and software industry. However, Corsair has taken up 18% of the U.S. gaming peripheral market share and 42% of gaming PC components.
Their focus on performance controllers and streaming gear pairs well with the increasing popularity of gaming streams and gaming overall. With the recent IPO and the low stock price, relative to where the company could be 5 years from now, Corsair is definitely a stock to look out for.
Longview Acquisition Corp (LGVW)
Companies without much of a track record often have trouble attracting investors due to lacking performance statistics. Longview Acquisition Corporation is one company with a smaller history, but there are a few factors that make it special.
This acquisitions company has been in the news often, not because of the company itself, but as a result of a potential merge. Longview is set to have a special-purpose acquisition company (SPAC) merger with Butterfly Network, gaining a listing under the ticker symbol BFLY.
In this instance, looking at both companies is essential when making a decision about the stock. Longview has a reputable chairman, Larry Robbins, who is also the founder and CEO of Glenview Capital Management, a hedge-fund founded in 2000 with around $7.7 billion under management as of March 2019.
Surrounding Robbins there are numerous other leaders at Longview and a notable board of directors. Market cap is at $770.817M and the share price has historically lingered around $9.90 a share. Following the announcement of the merger, the price soared to $17.37 on November 19th, but has now settled around $15.79 as of December 9th.
On the other hand, Butterfly Network is a health tech company focused on providing accessible medical imaging with their new Butterfly IQ +, a handheld portable ultrasound machine. The company has continued to improve their products by increasing the effectiveness of imaging quality. Additionally, the company has introduced competitive pricing amongst industry giants like GE, Phillips, and Clarius.
Butterfly Network has amassed $370M in funding with contributions from the Bill & Melinda Gates Foundation, Fosun Pharma, and Fidelity. Given a current valuation of $1.25 B, and considering the future merge, increased growth looks a promising reality for Longview.
