In this special episode on the spreading coronavirus COVID-19, we’ve identified three sectors that are most at risk from falling global economic activity and consumer spending.

When quarantines and restricted migration are in play, consumer spending goes out the window, which is why Cruise Lines, Airlines and Oil and Gas stocks all make our list of most exposed sectors.

To identify the stocks that are most at risk, we filtered each sector by debt/EBITDA and interest coverage.

Debt/EBITDA: tells us which company’s cashflow is leveraged to the downside if revenue stalls.

Interest Coverage: is a liquidity measure that tells us if the company is able to pay interest on their debt in the here and now.

There are many more potential short candidates, but these are the top three for each sector based on debt levels and liquidity.

Airline Stocks Most at Risk

Gol Intelligent Airlines (NYSE:GOL)

American Airlines (NASDAQ:AAL)

China Southern Airlines (NYSE:ZNH)

Oil and Gas Stocks Most at Risk

MEG Energy (TSE:MEG)

Noble Energy (NASDAQ:NBL)


Cruise Line Stocks Most at Risk

Norwegian Cruise Line (NYSE:NCLH)

Royal Caribbean Cruises (NYSE:RCL)

Carnival Corp (NYSE:CCL)

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