Phases of Covid-19 crisis:
Early- to mid-March 2020:
Fear of the coronavirus outbreak spreading rapidly translates into
reality, with the number of cases accelerating globallyLate-March 2020 onward:
Social distancing measures + lockdownsApril 2020:
Fed stimulus suppresses near-term survival anxietyMay-September 2020:
Recovery of demand, with the phased lifting of lockdowns - no panic anymore with number of cases appearing to have plateauedOctober 2020-February 2021: Unprecedented
surge in Covid cases forcing a fresh round of lockdowns across the nationSince March 2021: Ongoing vaccination drive and gradual re-openings drive an
improvement in demand - buoying market sentiment
Given the steady decline in the number of new Covid-19 cases in the U.S., we expect an improvement in demand to buoy market expectations. As investors focus their attention on expected 2021 results, we believe Flowserve stock has the potential for strong gains once fears surrounding the Covid outbreak are put to rest