All eyes are on Australia's largest city to see how it will defeat the dangerous COVID-19 delta variant.
The sight of 5.3 million people in prolonged lockdown has taken investors back to last year, when they sought to find ASX shares winning from people staying at home.
However, Tribeca Investment Partners portfolio manager Jun Bei Liu said that the current Sydney lockdown is slightly different to the 2020 scares.
"We didn't have vaccines [last year]," she told Switzer TV Investing.
"As soon as we come out of this, the recovery will be enormous… I really believe that, investors, you just need to be a little bit more patient as we pass this."
Having noted this, Liu reckoned a couple of ASX shares still look ripe for the picking right now while Sydneysiders are trapped at home.
Image source: Tribeca Investment Partners
The ASX share that's doubled in 5 years and pays a 5.7% dividend
Despite it having a network of physical stores, JB Hi-Fi Limited (ASX: JBH) was a pandemic beneficiary.
Last year, Australians bought up appliances and homewares to make their houses and home offices more comfortable during the first wave of the virus.
But JB Hi-Fi shares have slumped more than 5.5% this year.
"JB Hi-Fi has been sold off as the reopening of the economy got people excited… at the same time the consumer stimulus [wound] back," said Liu.
However, she thinks the appliances seller is in a prime position now.
"JB Hi-Fi's in a good situation at the moment with Sydney lockdown, potentially for a prolonged period of time. That certainly benefits a lot of their short-term earnings," Liu said.
"At the same time, we're expecting the government to step up and give more stimulus."
Even without the Sydney restrictions, Australians still can't travel freely. Therefore there's still plenty of money to flow into the consumer sector, according to Liu.
"JB Hi-Fi is the one that actually looks pretty good heading into the reporting season [in August]," she said.
"Most people are expecting earnings to fall next year significantly. I think people are way too bearish with that kind of forecast… On a 2-year view, this is a structural leader."
The JB Hi-Fi share price has doubled in the past 5 years, going from $23.33 to more than $47 this week. Incredibly, the stock also gives out a 5.73% dividend yield.
"And it's not expensive — that is the key. In today's market, if you want to buy quality businesses you have to pay up big multiples for them."
JB Hi-Fi stocks are currently trading on a price-to-earnings (P/E) ratio of around 12.
What's your favourite activity during lockdown?
Liu also liked the look of media conglomerate Nine Entertainment Co Holdings Ltd (ASX: NEC).
"It offers exposure to Stan, which is a very fast-growing streaming service," she said.
"At the same time, it gives you exposure to Domain Holdings Australia Ltd (ASX: DHG), which is going through a really good purple patch at the moment where [real estate] listings are going very strong."
Nine shares are up 13.6% for the year, trading for $2.64 on Tuesday afternoon. But they were above $3 in late June, so Liu feels like this is a lockdown buying opportunity.
"What do you think everyone's doing? Sitting at home watching TV!" she said.
"The feedback we have from advertising, especially the TV market, has been incredibly strong. Just because people really don't have many places to go to. And all the corporates are spending that money to build their brand."
