Face masks could be under considerable demand again.
Already, some states are again enforcing the use of masks.
In California, for example, Gov. Gavin Newson just tweeted, “Californians are now REQUIRED to wear face coverings in public spaces.”
And, according to NPR, Newsom added, “Our numbers are going up, not going down. Hospitalization numbers are just starting to creep back up, and I’m very concerned by what we’re seeing. We think the most impactful thing we can do, short of going back to a stay-at-home order, is wearing face coverings when we can’t practice physical distancing.”
We could see even more states following suit after Goldman Sachs said a “federal face mask mandate would not only cut the daily growth rate of new confirmed cases of Covid-19, but could also save the U.S. economy from taking a 5% GDP hit in lieu of additional lockdowns,” as noted by CNBC.
Jan Hatzius, Goldman’s chief economist added, “We find that face masks are associated with significantly better coronavirus outcomes. Our baseline estimate is that a national mandate could raise the percentage of people who wear masks by 15 (percentage points) and cut the daily growth rate of confirmed cases by 1.0 (percentage point) to 0.6%.”
If we see a boom in face mask demand, some of the top stocks to keep an eye on include:
Alpha Pro Tech (APT)
This is the company that makes disposable face masks for the public, so you can guess why they’ve had such an astounding run lately.
3M also makes face masks and respirators, and could see big demand. As recently as April 2020, the company said, “The demand we have exceeds our production capacity.” That could happen again, we believe, if the virus gets out of control again.
Etsy Inc. (ETSY)
ETSY exploded on face mask demand in recent weeks. “A surge in mask sales on ETSY since April has helped introduce its broader offerings to new shoppers,” wrote the Jefferies analysts, who recommend buying the stock and have a $110 price target,” reported CNBC.