The Motley Fool

Could these stocks make you rich in a post-coronavirus world?

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

A person holding onto a fan of twenty pound notes
Image source: Getty Images.

The coronavirus outbreak has forced me to revisit my bullish take on The Gym Group (LSE: GYM). I still like the stock’s low-cost model. It’s been the fastest-growing segment of the UK fitness market in recent years. And it is likely to become more and more relevant as the domestic economy slips into a painful contraction.

I fear that the number of people signing up to and working out in its fitness centres could struggle in a post-coronavirus landscape, though. Quarantine measures which forced the closure of gyms and promoted home workouts instead threaten to have a serious effect across the whole industry.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

A survey recently conducted by GlobalWebIndex (GWI) illustrates this point perfectly. More than 40% of respondents said that they plan to do in-home exercise more regularly following the pandemic. And the market research specialist says that the number of people doing just that has remained robust even as restrictions were eased in April, “showing that enthusiasm to keep up with them isn’t waning even as more countries move into the recovery phase”.

City analysts expect The Gym Group to be loss-making in 2020 but to bounce back into the black in 2021. It’s quite possible, but I fear that the blockbuster profits-making potential of this small-cap stock in the coming years has taken a serious whack. A premium forward price-to-earnings ratio of around 21 times fails to reflect this, too. I’m quite happy to avoid the leisure play at current prices around 170p per share.

macro shot of computer monitor with FTSE 100 stock market data in trading application

I’d buy this stock instead!

I’d be much happier to splash the cash on Urban Logistics REIT (LSE: SHED). This business provides the gargantuan buildings needed for the storage and distribution of goods. It is therefore indispensable to the e-commerce sector. And demand for its sites will receive an extra boost following the coronavirus outbreak.

Shopping restrictions in the wake of the pandemic have provided a boon to the online shopping sector. New users have joined in droves and it has reinforced the habit among existing web shoppers, too. It’s a phenomenon that will have long-reaching implications, too, as that aforementioned GlobalWebIndex report also illustrates.

Some 46% of respondents to its May survey said they now plan to do more of their shopping via cyberspace. This is up three percentage points from April’s report. Moreover, members of the critical ‘Generation Z’ demographic, along with higher income citizens, are most receptive to shopping online more often in future, GWI says.

The trading landscape seems to getting more and more favourable for firms like Urban Logistics, then. The stock is planning to exploit this backdrop to its fullest though constant expansion, too, and in late April bought seven distribution hubs (known collectively as ‘The Crown Portfolio’) for around £50m.

Urban Logistics commands a meaty forward P/E ratio of around 19 times at current prices around 135p per share. But I reckon this is a fair reflection of its mighty long-term profits picture. Besides, a chunky 4.6% dividend yield helps to take the edge off. I reckon this is a brilliant stock to buy for a post-coronavirus world.

One Killer Stock For The Cybersecurity Surge

Cybersecurity is surging, with experts predicting that the cybersecurity market will reach US$366 billion by 2028more than double what it is today!

And with that kind of growth, this North American company stands to be the biggest winner.

Because their patented “self-repairing” technology is changing the cybersecurity landscape as we know it…

We think it has the potential to become the next famous tech success story.

In fact, we think it could become as big… or even BIGGER than Shopify.

Click here to see how you can uncover the name of this North American stock that’s taking over Silicon Valley, one device at a time…

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended The Gym Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.