There are some stocks that never seem to have too much trouble. In bull markets, they rise, as do most stocks. And in bear markets, they also rise, unlike most stocks. Surprisingly, there are quite a few stocks to buy that behave in this manner.
Of course, the FAANG stocks immediately spring to mind when considering picks that seem to be perennial winners. I’ll skip those for this article. Further, with Meta Platforms (NASDAQ:FB) suffering its largest single-day drop on severely disappointing earnings and guidance, questions are beginning to arise about big tech in general.
Once we jump into this list of stocks that will win regardless of market conditions, you’ll start to get a sense of why these stocks are so successful. At the end of the day, these firms provide goods and services that are consumed with ubiquity. They are among the very best in their respective industries. That’s a recipe for a strong business, which in turn translates into strong stocks that weather all market conditions.
No matter which way the market goes, these stocks to buy are a solid bet:
- Coca-Cola (NYSE:KO)
- Taiwan Semiconductor Manufacturing (NYSE:TSM)
- LVMH Moet Hennessy Louis Vuitton (OTCMKTS:LVMUY)
- Visa (NYSE:V)
- Disney (NYSE:DIS)
- Procter & Gamble (NYSE:PG)
- Exxon Mobil (NYSE:XOM)
Stocks to Buy: Coca-Cola (KO)
When I think of Coca-Cola as a stock, I immediately think about Warren Buffett and Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B). Buffett is perhaps its most ardent and famous backer; KO stock is the fourth-largest holding in Berkshire Hathaway’s portfolio, with 400 million shares controlled by the firm.
When I think about Coca-Cola, its iconic red can pops into mind. It is a classic consumer brand that has never gone out of fashion. It is the king of beverages, which is the reason it seems to win no matter how the market is doing.
Well, it doesn’t actually win in any market. The pandemic has proven that. KO stock fell along with everything else when Covid-19 emerged in mid-February of 2020.
Here’s the good news, though: Coca-Cola very recently eclipsed the levels it was trading at immediately before the pandemic started. Part of the reason Covid-19 hit KO stock particularly hard is that it relies on restaurants for a high percentage of sales. As they shuttered, important revenue streams dwindled.
However, analysts at Guggenheim note that restaurant sales are improving faster than previously anticipated. That’s part of the reason KO stock is rebounding so well, and why those analysts believe earnings per share (EPS) will grow 12% this year.
Taiwan Semiconductor Manufacturing (TSM)
Every time I write about Taiwan Semiconductor Manufacturing (TSMC), I give an overview of the company. I do so because I think it’s difficult to overemphasize its importance to the global economy.
TSMC dominates the semiconductor foundry business, meaning it manufactures chips for the world’s most important semiconductor brands. Supply chain woes have only reiterated the importance of these chips to the economy, so you get my point.
The company has a firm grip on the industry, claiming more than half of the foundry market. In other words, it will win, bear or bull market.
Since we’re speaking broadly, there are a few important statistics that I’d like to note regarding its attractiveness. I especially like this line from its website: “Delivered 17.5% revenue CAGR and 17.1% earnings CAGR since listing in 1994.”
So, what makes Taiwan Semiconductor Manufacturing capable of maintaining such a dominant position in this vital industry? It comes down to tech leadership. TSMC pioneered and leads in seven-nanometer semiconductor foundry technology. This is critical to new fields like artificial intelligence (AI), 5G and many others. It puts them at the cutting edge of innovation.
Stocks to Buy: LVMH Moet Hennessy Louis Vuitton (LVMUY)
I theorized that leading brands with staying power in their respective industries should populate this list. In the fashion world, there are a handful of companies vying for the top spot as measured by revenue. European brands dominate the list, with those from France holding many spots.
French company LVMH Moet Hennessy Louis Vuitton is ranked second by profits, behind Italy’s Gucci. But LVMUY stock is the better pick to consider.
That aside, the best way to understand the business is to look at what it refers to as “houses.” These houses are groupings of brands across alcohol, leather goods and fashion, cosmetics, retailing, and jewelry and watches.
These houses collectively performed well, and 2021 was a good year for the company. Revenue reached 64.2 billion euros, which represented a 44% increase from 2020 and a 20% increase from 2019 levels.
2021 was a record year for the firm, with a particularly strong showing from its leather goods and fashion business. That includes the brands Louis Vuitton, Christian Dior, Fendi, Celine and Loewe, all of which reached new records for revenue and profitability.
Take a look at Visa’s price chart. Something is very obvious. It simply marches upward over time. As of this writing, its all-time performance was approximately a 1,322% return. V stock is a ten-bagger, and then some.
And it continues to do well. For one, it reported strong earnings in the first quarter of 2022. Adjusted EPS figures reached $1.81 in the quarter, 11 cents better than consensus expectations. Revenue increased by 24%, reaching $7.1 billion. And expectations are that Visa’s already-strong business will pick up even further.
Digital payments acceptance is increasing in concert with an uptick in international travel. That, of course, spells an uptick in card usage. On top of that, Visa restated that it expects sales to grow in the high teens for the remainder of the fiscal year.
Visa has a dominant position as measured by credit card transactions and number of cards in circulation. It remains a “buy” according to Wall Street. Their consensus target price leaves plenty of returns ahead as well.
Potential investors might fear Visa is overpriced. It carries a price-to-earnings (P/E) ratio that is 32 times projected 2022 earnings. But it lacks the credit risk that financial stocks like banks have. On top of that, it has a massive opportunity with the increasing acceptance of digital payments.
Stocks to Buy: Disney (DIS)
Coca-Cola’s status as an iconic American brand evokes certain images and feelings. If that is part of its investment allure, then the same holds true for Disney. It is a legendary entertainment brand that has touched us all.
But back to more pressing matters. DIS stock is temporarily down on news that Netflix (NASDAQ:NFLX) had a weak first-quarter subscriber outlook. That’s probably of little consequence in the longer term.
I would argue the same is true of Disney’s continued slump since March of 2021. In fact, I think it’s a classic buy-the-dip opportunity.
Disney shares grew rapidly during the depths of the pandemic. The company’s Disney Plus streaming service got red-hot after launching in 2019. Then signs of a slowdown emerged, and DIS stock gave back much of the earlier returns.
Weaker-than-anticipated November earnings didn’t help, either. My thought is this: Investors will find positives from Disney’s Feb. 9 earnings, and the tide will shift back in its favor. It’s probably so beat down now that investors will change their view and become bullish.
Procter & Gamble (PG)
Procter & Gamble is in the midst of showing investors that it wins in any market. The company owns several ubiquitous brands geared toward a variety of needs, ranging from hair and skin care to cleaning and laundry products.
Generally speaking, companies that produce staple consumer goods perform well in tough economic times. That includes Procter & Gamble, which manufactures products like Tide detergent and Pampers diapers.
Given that inflation is at historic highs, analysts were already expecting Procter & Gamble to perform well. Fortunately for the company, it exceeded those expectations, reaching $21 billion in revenue and EPS of $1.66. It is expecting organic growth to continue from its iconic brands even as prices increase.
Procter & Gamble is also a dividend aristocrat. The company is underpinned by 65 consecutive years of dividend increases.
Stocks to Buy: Exxon Mobil (XOM)
Exxon Mobil stock is near its target price right now. In market speak, it’s fully sold.
That means it likely isn’t the best time to establish a position in XOM stock — at least, that’s what I’d say in normal times. But, as we know, these are anything but normal times.
Oil had an extremely strong year in 2021. In fact, energy was the best-performing sector overall during the period, returning 53.3%. Therefore, Exxon Mobil is worth a look even at these prices.
That’s because 2022 is beginning to look a lot like 2021 for the company. Exxon Mobil released Q4 2021 earnings on Feb. 1. They were strong on multiple fronts.
For one, the company generated $48 billion in cash flows from operating activities. That was the highest level since 2012 and should satisfy fundamentals-heavy investors.
Furthermore, Exxon announced it is ahead of schedule on its 2025 emissions reduction plans. That should satisfy environmental, social and governance (ESG) investors to some degree as well.
It recorded $8.87 billion in earnings in Q4, and $23 billion for the year. That was the highest total since 2014.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.