--- title: It's Not Just Airlines and Hotels. Experts Say These Overlooked Stocks Could Be Big Winners in the Pandemic Recovery description: Investors are betting on travel stocks. But experts say these under-the-radar stocks should be in your portfolio too. authors: - name: Mallika Mitra role: Contributing Editor url: https://money.com/author/mallika-mitra/ bio: Mallika Mitra is a contributing editor for Money, based in Chicago. She has covered investing and retirement for seven years and her work has appeared in CNBC, Bloomberg, Kiplinger, AARP, Barron’s, Bankrate, The Daily Upside, ETF.com, The Bond Buyer, PLANADVISER, PLANSPONSOR and Investopedia. education: Craig Newmark Graduate School of Journalism at CUNY Kalamazoo College at_money_since: 2020 articles: 395 covers: - Investing - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping - Taxes - Technology also_seen_in: - CNBC - Bloomberg - Kiplinger - Barron's - Bankrate - WGN-TV - CBS News Radio - This Morning With Gordon Deal - Everyone's Talkin' Money social: - https://twitter.com/mitra_mallika - https://www.linkedin.com/in/mallika-mitra-4577a386/ published: '2021-04-08T18:02:16.000Z' modified: '2024-01-10T16:26:29.000Z' section: Investing tags: - News word_count: 780 canonical: https://money.com/stocks-pandemic-recovery-banks-software/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![A trader works ahead of the closing bell on the floor of the New York Stock Exchange](https://img.money.com/2021/04/Finance-Under-The-Radar-Stocks.jpg) It's no surprise that hotel and airline companies are likely to get a big boost as Americans grab their suitcases. Nearly 20% of the country is fully vaccinated and, according to the Centers for Disease Control and Prevention, that means they can safely travel within the U.S. But from eating in restaurants to shopping for office attire again, reopening the economy means a lot more than just jumping on an airplane. Here are some of the not-so-obvious winners of us (eventually) saying goodbye to COVID-19 for good. ## Cosmetics Soon, many will ditch their work-from-home pajamas and replenish their make-up stash. In a recent consumer survey, Wells Fargo analysts found that respondents choose make-up and beauty as the category they were most likely to return to first post-pandemic, even beating going-out apparel. There’s also the “lipstick effect,” which refers to how consumers tend to spend money on small indulgences rather than expensive luxury items, like a purse, when money is tight. Cosmetics are cheaper but they also make people feel good, says Camilla Yanushevsky, a senior equity research analyst at CFRA: “They’re making a purchase that enhances their self image.” (And money is tight: millions of American are still unemployed, and more than a third of respondents to a [survey](https://money.com/american-spending-outlook-survey-2021/) from Money and Morning Consult said their situation earlier this year was somewhat or much worse now than it was in February 2020.) Ulta Beauty is one cosmetics company that could get a boost, Yanushevsky says. ## Off-price retailers As people look for outfits they can wear to bars and restaurants, off-price retailers could snag some extra business as well. “When there’s a widening wealth gap, when there’s challenging labor market prospects, people are more inclined to shop for bargains,” Yanushevsky says. These retailers may also capture market share from 2020 department store bankruptcies and benefit from the anxiety of shopping in public places dissipating. Burlington, Ross Stores and TJX Companies (which operates TJ Maxx, Marshalls and others) are among these potential winners, according to a recent note by Wells Fargo analysts. ## Banks Combine the economy reopening, with [stimulus](https://money.com/when-third-stimulus-check-sent-out/) money from the government and cash Americans have [stashed away](https://money.com/cornavirus-saving-habits/) for months and what do you get? Strong economic growth in the second half of 2021 and good news for banks, says Jack Ablin, chief investment officer at Cresset Capital Management. There’s a stronger likelihood that borrowers will be able to pay back loans, increasing credit quality. Banks also have more ability to make money by borrowing overnight rates, which are close to zero, and lending out intermediate term interest rates like 10-year rates, which have jumped. Some of the largest banks are J.P. Morgan, Bank of America and Citigroup. Meanwhile, consumer finance companies, largely made up of credit card companies like American Express and Capital One, have started to move with the more “obvious” pandemic recovery groups, like airlines and hotels, adds Kristen Perleberg, a senior analyst at The Leuthold Group. ## Meta software Last March, IT departments scrambled as companies were suddenly forced to get employees up and running from their homes. For some employers, like [Twitter](https://www.buzzfeednews.com/article/alexkantrowitz/twitter-will-allow-employees-to-work-at-home-forever) and [Shopify](https://twitter.com/tobi/status/1263483496087064579?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed&ref_url=https%3A%2F%2Fcdn.embedly.com%2Fwidgets%2Fmedia.html%3Ftype%3Dtext%252Fhtml%26key%3Dcfc0fb0733504c77aa4a6ac07caaffc7%26schema%3Dtwitter%26url%3Dhttps%253A%2F%2Ftwitter.com%2Ftobi%2Fstatus%2F1263483496087064579%26image%3Dhttps%253A%2F%2Fi.embed.ly%2F1%2Fimage%253Furl%253Dhttps%25253A%25252F%25252Fpbs.twimg.com%25252Fprofile_images%25252F1245084664244699140%25252Ftk5QtiZx_400x400.png%2526key%253D8804248494c144f5b4765c41f66c6ed5), the trend has turned into a permanent model, while others will have workers in an office for [only part of the week](https://www.nytimes.com/2021/03/03/business/return-to-work-coronavirus.html). They’ll need help supporting their IT changes. Enter so-called meta-software companies, software that software developers themselves use, says John Freeman, vice president of equity research at CFRA. Businesses can be unwilling to adopt new technologies unless they’re forced to (if it ain't broke, don’t fix it, as they say) but financial crises tend to accelerate digital transformation. “Companies learned their lesson,” Freeman says. Now, they’ll rely on meta-software companies to help with the necessary digital shift. His top picks are ServiceNow, New Relic and Atlassian. ## Space When you think of space stocks, you may picture rockets or astronauts walking on the moon. But the work of space companies actually hits pretty close to home, whether it be when your Uber driver or Amazon delivery uses GPS tracking, or when your family gets on a Zoom call from different corners of the world. “Satellite communications are working behind the scenes to make sure people can stay connected,” says Andrew Chanin, Co-Founder & CEO of ProcureAM, the firm behind The Procure Space ETF. The pandemic pushed many of these technologies to the forefront as companies have rushed to increase their remote working communication and connectivity capabilities, he adds. 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