Who would have thought that condom stocks could be considered a top reopening play?
Well, it appears today, they are.
The pandemic has caused consumption of certain goods to decline. We’re all aware of this. However, a number of recent reports on a decline in sex resulting from the pandemic has created problems for condom-makers.
A recent report from CNN said it best: “When the pandemic hit, couples found themselves worrying about getting sick, losing income, teaching their children at home while working full time (or worrying full time about sending them to school). It hardly makes a perfect recipe for sex.”
Companies like Church & Dwight (NYSE:CHD), Reckitt Benckiser (OTCMKTS:RBGLY), Walgreens (NASDAQ:WBA) and CVS (NYSE:CVS) have all felt the pain. Whether it’s traditional condom makers or the retail chains deriving revenue from selling protection, investors could certainly benefit from folks getting giddy again.
Indeed, that appears to be the case.
More Sex Means More Sales and Profit for Condom Stocks
A number of reports have indicated that the reduction of pandemic restrictions is leading to surging condom sales.
Reckitt Benckiser reported on Wednesday that double-digit sales increases of its condom, lubricants and sex toys has taken hold. This year-over-year bump comes as lockdown restrictions are eased across the U.S.
With President Joe Biden and his administration announcing looser restrictions recently, the hope is that things will go back to normal soon. The hope is also that young party-goers will be able to do their thing once again, and sexual activity will pick up.
Globally, strength has been seen in key growth markets such as China and Europe as well. Condom makers appear to be ramping up production amid expected demand surges. Indeed, the expectation is that we’re progressing toward the end of this terrible pandemic.
If condom sales are any indication, we could be closer than many investors think to the end of the pandemic. And that’s a great thing for all investors.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.