The U.S. needs more face masks – and fast.
For one, Dr. Anthony Fauci just said the U.S. is “going in the wrong direction” and “would not be surprised if we go up to 100,000 a day if this does not turn around.”
On top of that, some states are just now rolling back reopening.
“The surge of cases in California and the upcoming Fourth of July holiday weekend will force a rollback in the state’s phased reopening plans and stricter enforcement of health orders such as wearing masks, Governor Gavin Newsom said,” as quoted by CBS.
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.
Making the situation far worse, the U.S. just ran out of free face masks.
All as political leaders from both sides of the aisle urge Americans to wear protective coverings, which can reduce transmission by up to 85%. With demand outweighing supply, the U.S. could run into a massive problem.
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 (MMM)
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.
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