3 Best-in-Class Resilient Stocks to Buy Now
Blue-chip, resilient stocks are attractive in today’s market environment
What are some of the typical qualities that make a business resilient? It is generally a business that can generate profits in almost any economic environment. With a strong brand and products or services that are always in constant demand, investors can count on these types of businesses through thick and thin. Blue-chip stocks are a good example of this, as they are companies with strong balance sheets, stable cash flows, and business models that can stand the test of time.
Adding resilient blue-chip stocks to your portfolio makes a lot of sense right now given recent market volatility. With so many confusing factors at play in the market and in the economy, targeting companies that offer reliability could be one of the smartest things to do right now.
Let’s take a look at 3 resilient blue chip stocks to buy now.
If you’re interested in a top tech company that has consistently proven itself capable of adapting to new trends over the years, Microsoft certainly fits the bill. The software company has pivoted to cloud computing at the perfect time, and Microsoft Azure now offers whole new growth opportunities for long-term shareholders. Products like Windows, Microsoft Office, Office 365, Sharepoint, and more are some of the world’s most popular business software options, which means the business is consistently getting the cash flow it can. reinvest in high growth areas such as Azur.
Microsoft’s revenue grew 22% year-over-year in the second quarter to $ 45.3 billion, and the company continues to reward its shareholders with consistent profit growth. There’s also a lot to like about the company’s XBOX Series X gaming console, which could deliver a nice increase in profits for Microsoft as supply chain issues start to diminish. The bottom line here is that Microsoft has a rock solid net cash position, strong upward growth, and a history of building innovative new products, making it one of the best blue chip stocks around. .
Even with Pfizer trading around all-time highs, this blue chip company could end up being a good deal at current levels. It is a global research-based biopharmaceutical company that offers investors the right balance between a strong existing drug portfolio and an intriguing pipeline of new drugs that could become future cash cows. With top-selling drugs like Prevnar, Ibrance and Eliquis, investors here can count on stable earnings quarter after quarter. Global prescription drug sales are expected to grow at a compound annual growth rate of 7.4% from 2020 to 2026, indicating to us that there is a lot of money to be made for a company like Pfizer.
Investors are likely already aware of the company’s COVID-19 vaccine, which saw Pfizer increase revenue 134% year-on-year to $ 24.1 billion in the third quarter. The company’s COVID antiviral treatment pills could be another strong growth driver, and FDA approval of the treatment could cause stocks to skyrocket in the coming weeks. Finally, the company’s 3.05% dividend yield is very attractive, and Pfizer also has a history of stock buyback programs that make it a great choice for long-term investors.
Companies involved in the healthcare industry can certainly offer reliability, especially in the aftermath of the global pandemic. McKesson is a solid choice as the largest pharmaceutical distributor in North America, which means the company plays a vital role in keeping our country healthy. In addition to pharmaceuticals, McKesson provides health information technology, medical supplies and care management tools, which means it serves a wide range of healthcare clients. What is perhaps most appealing here is the fact that McKesson has a truly dominant position in the market, as it is one of three companies that operate as a pharma wholesale and distribution oligarchy. .
The company reported total second-quarter revenue of $ 66.6 billion, up 9% year-on-year, and raised its outlook for fiscal 22, which is another good reason to consider adding actions. McKesson also plays an important role in the fight against COVID-19 and has seen strong demand for products such as COVID-19 tests, vaccines and more in recent quarters. Finally, the fact that McKesson is selling part of its European business is another advantage to consider, as this will allow the company to focus on the areas with the highest growth in the business in the future.
Should you invest $ 1,000 in McKesson now?
Before you consider McKesson, you’ll want to hear this.
MarketBeat tracks Wall Street’s top-rated and top-performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat identified the five stocks that top analysts are quietly asking their clients to buy now before the broader market takes hold … and McKesson was not on the list.
While McKesson currently has a “Buy” rating among analysts, top-rated analysts believe these five stocks are better bets.
See the 5 actions here
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