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The stock market Bearish The shade as the wind of the fifth wave brings a cold tremor of another blockade. Less than six months after the full-scale recovery began, news of new mutants from South Africa has infected more than 20 countries.United States and Canada report Some cases of the new Omicron variant. In the light of the new variety, here are four stocks to buy with a dip:
The impact of Omicron on the stock market
Before explaining the logic of the above four strains, let’s first understand the Omicron virus. This virus is a variant of COVID-19, but its structure is very different. Scientists are afraid that current vaccines may not be effective against this variant. And like all mutants, its diffusion rate is much higher than COVID-19. The government has a protocol in place and ready to control the transmission, but the possibility of a blockade cannot be ruled out.
If the virus creates another pandemic wave, pharmaceutical, logistics, and digital stocks could rise again. And airlines and oil stocks can be sluggish. This is the right time to buy digital stocks before they start the rally.
Kinaxis and Descartes strains and Omicron
Kinaxis and Descartes We are working on a supply chain management (SCM) solution. With significant demand changes and the closure of all non-essential factories and stores, the pandemic has created new supply chain challenges. There have been major changes in the products people have purchased and how they are purchased. The surge in e-commerce has created another major challenge, as ordering flexibility and front door delivery required more detailed SCM solutions.
Kinaxis and Descartes Equities plunged 15-28% during the March 2020 pandemic plunge, but surged 70-80% from pre-pandemic levels. We cannot expect the same level of growth in the next wave, but we expect higher than normal growth.So if you’re tired of waiting Air Canada To make money for you, you can liquidate your position and put your money into Kinaxis and Descartes. These SCM stocks help recover up to 25% loss. And if you’re lucky, they may also grow your portfolio in a year.
Enghouse Systems inventory
Enghouse Systems provides software solutions for contact centers, transportation, communications, and geographic information systems. The company’s growth strategy is to acquire software companies that complement existing businesses and increase recurring revenue. During the 2020 pandemic, the company benefited from a recent acquisition of video conferencing software. Product demand surged, and inventories surged almost 40% from pre-pandemic highs.
But since then, stock prices have fallen. 16% down from 22nd November BloombergCiting people with knowledge of this issue, Enghouse reported that he was looking for potential sales and told his adviser about the same. However, nothing has been confirmed and even sources say no decision has been made.
There are two reasons to buy stock here. First, if the Omicron wave hits the market, the demand for video conferencing could skyrocket and Enghouse’s inventory could increase. Second, if the rumors are true and the company finds a buyer, the stock could skyrocket to the premium price of the takeover offer.
Cargo Jet and Omicron
Cargojet offers premium, time-sensitive air cargo services. This airline became popular during the pandemic. Demand shifted to cargo ships and charter aircraft as passenger airlines landed.That is when Cargo jets increased adjusted EBITDA by 143%.
However, the return of passenger airlines robbed Cargojet of catalysts, causing stocks to fall 30% from the pandemic peak and 20% from their September 2021 highs. In addition, supply chain issues have reduced cargo volumes.But overall, stocks are much better than they were in the pre-pandemic era, thanks to the e-commerce boom and its extended partnerships. Amazon Canada.
With a 30% drop, the inventory of pandemic catalysts was discounted. If the waves of Omicron again affect air travel, the catalyst could return and drive inventory to new highs.
The above four stocks can protect your portfolio from Omicron variants, but you should buy them now.
Increasing fear of Omicron: 4 Canadian stocks to buy at market dip
https://www.fool.ca/2021/12/03/omicron-fears-rising-4-canadian-stocks-to-buy-on-the-market-dip/ Increasing fear of Omicron: 4 Canadian stocks to buy at market dip