Next Investors logo grey

Post COVID stocks to watch

Published 18-JUN-2021 11:41 A.M.


2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

This week, the Australian Bureau of Statistics released some good economic data regarding our economy, reporting GPD growth of 1.8 per cent for the March quarter, which is ahead of expectations and much better than many other countries.

With vaccines rolling out across the world, everyone is looking towards 2022 where it is expected that life will return to something more akin to normal. So, which stocks will benefit as the Australia market and the world opens again and which stocks are likely to continue to struggle?

It is likely that commercial real estate and shopping centres will continue to struggle, as we are now in the habit of working and shopping from home, therefore, in the next 12 months stocks such as Scentre Group and Vicinity Centres are unlikely to perform given that a lot of stores have closed while other businesses may be very hesitant to open up new stores.

Travel stocks are also likely to underperform at least until mid-2022, given that restrictions around international travel are unlikely to change until well into next year.

On a positive note, online retailers should continue to do well and with less expenditure on overseas travel, Australians will continue spend on items in Australia with JB Hifi, Kogan and Harvey Norman likely to be the winners.

Australians are also more likely to favour driving holidays and weekends away over the next 12 months.

Therefore, retailers involved in caravan, camping, sporting goods, four-wheel driving and other leisure activities are likely to do well, especially as we move into summer later this year.

Another area that is likely to benefit is companies that are being supported by growing revenues from offshore such as ResMed, Aristocrat Leisure and even the troubled Treasury Wines Estates to name a few.

I will say, one thing that is guaranteed as we move closer to 2022 and that is the economy will continue to change and shift to a new way of living.

Dale Gillham is Chief Analyst at Wealth Within and international bestselling author of How to Beat the Managed Funds by 20%. He is also the author of the award-winning book Accelerate Your Wealth—It’s Your Money, Your Choice, which is available in all good book stores and online at

NB: Neither Dale or Wealth Within are affiliated with any of our related portfolios.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.