The coronavirus pandemic has not only been one of the biggest healthcare crises in history, but it has also affected the global economy and stock markets in a big way. Markets tanked all over the world over the past weeks, and many stocks recorded steep declines amidst the carnage.
That being said, it is also necessary to point out that there are certain stocks that managed to record substantial gains despite the downturn. Two such stocks were Groupon Inc Common Stock (NASDAQ:GRPN) and Gold Fields Limited (NYSE:GFI), which managed to go against the grain. It could be worthwhile for investors to take a closer look at these two stocks.
Big Gainers In April: Groupon
Beleaguered online deal service Groupon has seen its stock decline steadily over the past few years, but in April, it emerged as a surprise gainer. GRPNstock gained as much as 25% in April, and in such a situation, it could be prudent for investors to take a closer look at the stock. In this regard, it is also necessary to point out that the Groupon stock is still down 50% in 2020 so far.
Considering the fact that most retail activities had been suspended back in March, the outlook about the Groupon stock was pessimistic. However, the stock got some action after the Federal Reserve announced trillions of dollars in fiscal stimulus. More importantly, Groupon instituted cost-cutting measures and also put shareholder rights in place in order to repel any takeover attempts. The situation with Groupon would be clearer when the company announces its earnings later on in May.
In the meantime, GRPN stock also faces a possible delisting from NASDAQ since it is trading around the $1 mark. Investors need to be a bit cautious about Groupon for now.
Big Gainers In April: Gold Fields Limited
GFI stock had declined by as much as 30% at one point in April but eventually made a remarkable recovery and recorded gains of 54% for the month. The company has gold mining interests in South America, Africa, and Australia, and the stock had declined due to pessimism regards the effects of the coronavirus pandemic on Gold Fields’ business.
In late March, the company had to close down its South Deep mine in South Africa, and that led to a production decline of 12% year on year. It proved to be another negative trigger for GFI stock. In March, the gold prices had also remained flat. However, gold prices rallied by as much as 7% in April, and the overall mood in the market changed as well. That being said, the crisis is not over a year and the Gold Fields stock has the reputation of being a bit volatile. Hence, investors need to be absolutely sure with regard to investment