Insights

3 shares that have reacted adversely to vaccine news

JB Hi-Fi Limited (ASX:JBH) and 2 other strong ASX growth shares have fallen 8% since news of a COVID-19 vaccine. Let’s take a look.
The post 3 shares that have reacted adversely to vaccine news appeared first on Motley Fool Australia. –

The ASX market has been on a high since news of an imminent vaccine for COVID-19 broke out. Before today’s retreat of 0.5% , the ASX 200 index has been on a consecutive day winning streak as investor confidence begins to seep back into the markets. 

However, not all companies have had positive price reactions to the vaccine news. Here we’ll take a look at three ASX growth shares that slid following the vaccine news.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Domino’s Pizza share price had gained more than 60% on a year-to-date (YTD) basis shortly prior to the vaccine news. It has lost 8% of that gain since news of the vaccine was released on Monday, and is currently trading at $78.20. 

The company has been a big beneficiary of the lockdown, as more people dine at home and order food deliveries. Its strong results in 2020 was underpinned by the strong demand on its food delivery network. Traditionally, more than 50% of Domino’s global sales come from digital channels and deliveries. As lockdown restrictions are gradually being lifted and restaurants resume business, this source of revenue for Domino’s is perceived to be gradually weakening. 

Even before the vaccine news, brokers had already downgraded its outlook on Domino’s after its first quarter results came out only slightly better than expected. 

JB Hi-Fi Limited (ASX:JBH)

JB Hi-Fi is a discount retailer of consumer electronics. Its share price had gained 30% leading up to the vaccine news, and has lost 8% since the news hit the markets, and is currently trading at $45.24.

JB Hi-Fi’s business did really well in the past six months as more people were buying home entertainment products as a result of lockdown restrictions. Soon after the vaccine news came out, equity analysts at Macquarie Group Ltd (ASX: MQG) downgraded the company’s shares to a neutral rating and cut the price target on them by almost 10% to $49.50.

Brokers in general have reduced the multiples for shares that it believes are likely to be impacted by a redirection in spending as the world returns to normal. 

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

Fisher & Paykel is a manufacturer of devices used in respiratory care, acute care, and the treatment of obstructive sleep apnea. Its share price was travelling well this year, gaining more than 60% just before the vaccine news. In the last four trading days, it has fallen by 8%, and is currently trading at $31.05.

There has been strong demand  for the company’s hospital respiratory care products in the last six months due to the ongoing spread of the coronavirus pandemic around the world, especially in the northern hemisphere. Investors have been reassessing the future demand for Fisher & Pykel’s products, especially its respiratory devices post-COVID.

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 3 shares that have reacted adversely to vaccine news appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!