FLGT - This Small-Cap Stock Will Be a Long-Term Winner From the Pandemic
The COVID-19 pandemic changed the landscape for stocks, accelerating trends that benefited some companies while pushing others to the brink of bankruptcy -- or over the edge and into it. Now that approval of multiple coronavirus vaccines seems imminent, investors are trying to predict which stocks will do well once the threat recedes.
Long-term investors should be looking at the situation in a slightly different way. Companies that have technology or market positions that will sustain them as leaders or disruptors of their industries are likely to keep paying off for their shareholders long after the current chaos subsides. The prospects of some companies have actually been strengthened by the pandemic for the long term.
One such company is genetic-testing specialist Fulgent Genetics (NASDAQ: FLGT) . The pandemic dropped a windfall in its lap and turned it into a coronavirus stock . Now, the market is reassessing the value of the company based on the idea that its tailwinds will soon go away, and its share price has fallen by 31%. But this health crisis has permanently improved the company's prospects, creating an opportunity for patient investors.
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This Small-Cap Stock Will Be a Long-Term Winner From the Pandemic