Governor Andrew Cuomo announced today a purposed plan to convert dormitories and a hotel into temporary hospital rooms like the New York Marriott at the Brooklyn Bridge.
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More positive news on the vaccine front is set to send stocks higher on Monday, especially names tied to an economic reopening. For investors looking to ride the big vaccine-driven rally, Goldman Sachs has a basket of deep value stocks poised to benefit the most.
David Kostin, the bank’s chief U.S. equity strategy, advised clients to own tactical positions in value stocks amid the promising vaccine news. Moderna said Monday preliminary trial data showed its coronavirus vaccine was more than 94% effective, following Pfizer’s announcement last week saying its vaccine candidate is over 90% successful in preventing the virus.
“We expect vaccine approval and distribution will serve as a catalyst for the trade and will drive positive EPS revisions in many of the hardest-hit industries and most virus exposed companies,” Kostin said in a note.
The Pfizer vaccine development sparked a market rotation into value stocks and out of growth names last week, and the shift is slated to accelerate on Monday with Moderna’s news. Investors piled into companies that would benefit from an economic comeback next year while dumping high-flying technology shares which held up during the pandemic.
Goldman screened the S&P 500 for companies whose earnings estimates still significantly lag their pre-pandemic levels. The bank believes these names could see a drastic rebound in profit expectations and have the potential to lead the market gains.