You might remember the “freshman 15” that first-year college students gain after months of boozing and poor diet choices without Mom looking over their shoulders.
Well, after months of spending a lot more time at home than usual, we now have the “COVID 19.”
Nineteen might be an exaggeration. But a study from Weight Watchers over the summer found that Americans had gained 12.5 pounds on average during the pandemic.
The start of a new year is always a time for resolutions to get in shape.
But with so many Americans having spent the last nine months or so at home and gyms closed or offering limited access … well, I expect New Year’s resolutions to take on a new sense of urgency in 2021.
For many of us, getting back to normal will mean a newfound commitment to shed the pounds we put on in 2020. And for most of us, shedding the “COVID 19” starts with eating better.
One “diet stock” is well-positioned to benefit from a flurry of New Year’s resolutions.
It’s a smart way to play the generational trend of healthier living. One of the largest players in a booming beverage market, it boasts an estimated 30% market share:
This diet-friendly beverage was a $3.5 billion business back in 2015. By 2022, sales should top $7.3 billion.
Public Health Officials Will Favor This “Diet Stock’s” Products in 2021
The trend toward healthier living didn’t start with COVID-19, of course. But the pandemic gave it a major boost — and a major sense of urgency.
People struggling with obesity and diabetes are at higher risk for COVID-19. That was enough to convince my father-in-law to quit drinking and lose weight.
He’s lost close to 30 pounds since all of this started, and he’s not done.
And now that he knows how it feels to be healthier, he has little interest in putting on the weight again. His lifestyle changes are permanent, or at least long-lasting.
Once the immediate crisis of the pandemic passes, we’ll see public health officials making a newfound push to tackle obesity. We may not see another true pandemic for another century. Only time will tell.
But this year made clear that the obesity epidemic is a major threat to public health. You can expect the folks in charge to help nudge people away from junk food and into healthier choices.
The trend in this diet-friendly beverage is only getting started.
Investors Will Favor Its Products Too
The company that we’ve identified to benefit from the trend rates a 97.8 in Adam O’Dell’s Green Zone Ratings system, meaning it scores higher than all but about 2% of stocks in our universe:
This stock’s impressive Green Zone Rating.
Now, the story gets even better.
Not only is this highly-rated stock well-positioned to benefit from healthier living in 2021 and beyond … but there is a potential catalyst to make it skyrocket — and soon.
You see, this is a heavily-shorted stock. That sounds bad. If traders are selling it, it must be at risk of a major decline, right?
Not exactly. Remember: When you short a stock, you eventually have to buy it back. You’re hoping it falls so you can buy it back cheaper.
But if the stock rises, you’ll have to buy it back at a higher price. And here is where it gets fun. If several short sellers try to cover their positions at the same time, you end up in a buying frenzy that can cause the shares to rocket higher.
This is what traders call a short squeeze, and it’s caused the untimely heart attack and death of many a short seller.
I believe we’re on the verge of something like that today. The short interest in this stock is super high. The most recent data from late last month shows 7.7 million shares sold short, which represents 36 days of average trading volume.
A days-to-cover figure of even 5 can be cause for concern. And again … this stock’s figure is 36.
Imagine the potential pent-up buying here. If we get a proper short squeeze — which isn’t unlikely if the shares keep pushing higher — we could see a major move higher.
How to Get All the Details
Throughout this “Holiday Investment” series, we’ve told you about stocks that we recommended and are up big (one as much as 240%!)
But this one is a little different. You see, even our premium Green Zone Fortunes subscribers don’t know about this stock yet.
Chief Investment Strategist Adam O’Dell and I are working on the December issue of the newsletter right now. We’ll release the details to our readers next Wednesday, December 16.
That means you can join today and be in this stock from the beginning!
When we reach out next year to tell Money & Markets readers how well this diet-friendly beverage stock performed as Americans tried to shed the “COVID 19,” you’ll already be in the know.
Click here now to find out more. You’ll get the details on each of the stocks we covered in this week’s “Holiday Investment” series — and you’ll get first dibs on this New Year’s stock next Wednesday!
Plus … you can get exclusive access to Adam O’Dell’s Millionaire Master Class special report today for only $1.
While we’re planning for the new year, why not make your portfolio’s health a priority — for a low price that you have to see to believe?
Money & Markets contributor Charles Sizemore specializes in income and retirement topics. Charles is a regular on The Bull & The Bear podcast. He is also a frequent guest on CNBC, Bloomberg and Fox Business. Follow Charles on Twitter @CharlesSizemore.