An uptick in COVID-19 cases is raising concerns about the forthcoming winter, during which the virus has the potential to survive longer and be more virulent. Furthermore, high travel activity due to Thanksgiving and other holidays will likely increase the number of cases in multiple states, enhancing the importance of testing. Hence, we think that fundamentally strong coronavirus testing stocks of Abbott Laboratory (ABT), Laboratory Corporation of America (NYSE:LH), and Quest Diagnostics (NYSE:DGX) could be solid bets now. Read on.The steady recovery from COVID-19 came to a halt in the summer as new cases climbed due to the virus’ Delta variant. Fortunately, cases began declining again from September to October as various guidelines, vaccine and mask mandates were implemented. However, the Centers for Disease Prevention and Control (CDC) indicated that cases had surged 16.1% from the previous week, as of November 18, raising concerns about a winter resurgence, because cold and dry conditions help the virus thrive.
In addition, as people travel back to their hometowns for Thanksgiving, cases have been increasing across the country, with more than 90,000 cases being reported each day and more than 30 states experiencing upticks.
Last month, it was announced that unvaccinated travelers entering the United States would face stricter restrictions, requiring them to produce a document indication they’ve had a recent negative COVID-19 test. So, this mandate should drive the revenues of coronavirus testing companies. Indeed, the global COVID-19 diagnostics market is expected to expand at a 3.1% CAGR between 2021 - 2027.