2 stocks to buy during economic turmoil

Shares rose sharply in the last trading session, with the S&P 500 adding 2.1% to reached its highest level since early May, with the Dow Jones jumping 535.10 points and the Nasdaq Composite gaining 2.9% to 12,854.80, its highest close since late April. This was prompted by the latest inflation report which indicated a slowing in the pace of price increases. Inflation increased by 8.5% in July, slightly cooler than analysts’ expectation of 8.7%.

However, Fed officials expect to continue tighten monetary policy until price pressures are fully removed. The Fed is “far, far away from declaring victory” on inflation, said Minneapolis Federal Reserve Chairman Neel Kashkari. Moreover, the strength of employment and wage growth is encouraging the Fed to maintain its aggressive stance.

Moreover, the situation remains tense on the geopolitical front, with no end in sight to the war in Ukraine, and the escalation of tensions between China and Taiwan could aggravate the macroeconomic challenges.

Given these uncertain times, investors should consider adding these rock-solid stocks, The Coca-Cola Company (KO) and Walmart Inc. (WMT), to their wallets now.

The Coca-Cola Company (KO)

KO manufactures, markets and sells various non-alcoholic beverages worldwide.

On June 13, KO announced a global relationship with Brown-Forman Corporation to launch the iconic Jack & Coke cocktail as a branded ready-to-drink (RTD) premixed cocktail option. This should be widely requested, given the popularity of its brand.

The knockout net operating income increased 12% year over year to $11.33 billion in the fiscal quarter ended July 1, 2022. Gross profit for the quarter was $6.50 billion, up 2% from its value a year ago.

Street expects KO’s revenue for the fiscal quarter ending December 2022 to be $9.93 billion, indicating a 4.8% year-over-year increase. Its EPS is expected to improve 6.3% year-over-year to $0.48. The company has exceeded consensus EPS estimates in three of the past four quarters.

Over the past year, the stock has gained 11.3% to close the last trading session at $63.65.

KO’s solid fundamentals are reflected in its POWR Rankings. The stock has an overall rating of B, which translates to Buy in our proprietary rating system. POWR ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

KO is also rated B in Sentiment, Stability and Quality. In category A Beverages industry, it is ranked No. 19 out of 34 stocks. Click here to see additional POWR ratings for Growth, Value, and Momentum for KO.

Walmart Inc. (WMT)

WMT operates retail, wholesale and other units around the world. The Company operates through three Walmart US segments; Walmart International; and Sam’s club.

On August 10, WMT announced that it would open a 400,000 square foot high-tech consolidation center in Lebanon, Pennsylvania, with nearly 1,000 additional jobs in the area. The facility will leverage automated technology to increase the efficiency of Walmart’s supply chain. This development should prove strategically beneficial for the company.

On July 28, WMT and Getaway, a health and wellness hospitality company, announced a partnership that names Walmart as Getaway’s first official retail partner to introduce general stores at select Getaway Outposts coming this fall. . This new alliance will help Getaway customers live better by making nature travel easier and more convenient.

“Walmart’s partnership with Getaway furthers our mission to help people live better lives, wherever they are,” said Casey Schlaybaugh, vice president, Brand Marketing, Walmart US.

WMT’s total revenue increased 2.4% year-over-year to $141.57 billion in the fiscal quarter ended April 30, 2022. Net cash provided by financing activities increased amounted to $5.32 billion, up 198.4% year-over-year over the same period.

Analysts expect WMT’s revenue for the fiscal quarter ended July 2022 to be $149.78 billion, a 7.1% year-over-year increase. Additionally, the company’s revenue is expected to grow 4.6% year-over-year to $593.6 in the current fiscal year.

WMT has gained 3% over the past month to close the last trading session at $128.58.

WMT’s sonic fundamentals are reflected in its POWR ratings. The stock has an overall rating of B, which is equivalent to Buy in our proprietary rating system.

The company also has a B rating in stability. Of the 38 A-rated shares Grocery stores / big box retailers industry, WMT is ranked #21. Click here to get WMT’s ratings for Momentum, Sentiment, Value, Quality, and Growth.

KO shares were trading at $63.87 per share on Thursday afternoon, up $0.22 (+0.35%). Year-to-date, KO has gained 9.48%, versus a -10.29% rise in the benchmark S&P 500 over the same period.

About the Author: Komal Bhattar

Komal’s passion for the stock market and financial analysis led her to pursue her career in investment research. Its fundamental approach to stock analysis helps investors identify the best investment opportunities. After…

More resources for actions in this article

Comments are closed.