- Newmont (NEM): Precious metals continue to perform well due to inflationary fears.
- Raytheon Technologies (RTX): RTX cynically enjoys a massive organic marketing opportunity.
- Chevron (CVX): Oil will likely remain a pivotal asset for the foreseeable future.
- Expro (XPRO): Specialized equipment and services providers for the hydrocarbon sector should perform well.
- Verizon Communications (VZ): Conflicts and crises won’t stop the 5G rollout, making VZ one of the stocks to buy.
- Hershey (HSY): Providing a cheap respite to current woes, HSY is intriguing as a recession hedge.
- HireQuest (HQI): The labor shortage could turn into a hiring spree.
Investors seeking the best stocks to buy in April are understandably concerned about possible recession risks. As the S&P 500 index struggles to put in a positive print on a year-to-date basis, it only makes the task more difficult.
Recently, a Bloomberg report mentioned that Goldman Sachs is concerned about growing threats of an economic downturn. Further, Goldman isn’t alone in its analysis, imposing jitters on the market.
One of the contrarian arguments you’ll find on the blogosphere and social media is that recessions typically happen when people least expect them. Therefore, it’s better to adopt a contrarian view on stocks to buy. This notion is flawed. For instance, former Federal Reserve chair Alan Greenspan in February 2007 sounded the alarm of a recession by year’s end.
Greenspan was right on the money. So don’t be fooled: just because mainstream analysts provide heavily broadcasted warnings does not necessarily mean they’re inaccurate. You have to consider each situation on its own merits.
At the same time, it’s extraordinarily difficult to say what will happen later this year. To be on the safer side it’s better to target stocks to buy that are likely to be relevant, irrespective of economic rumblings. Here are seven such ideas to consider in April.
Stocks to Buy: Newmont (NEM)
Commanding the largest gold reserve in the precious metals mining industry, Newmont (NYSE:NEM) has enjoyed a stellar start to this year. Gaining nearly 34% year-to-date.
Still, some might wonder if NEM still has the right stuff to keep moving higher. Personally, I believe Newmont and other core precious metals-related investments belong on your list of stocks to buy as a result of inflationary concerns.
As I’ve mentioned in several other articles for InvestorPlace, the unprecedented expansion of the real M2 money stock resulted in sharp headwinds against the consumer economy.
Moving forward, the Fed must attack this expansion to get it in line with our pre-pandemic normal. However, doing so risks a recession, which is why the central bank has been ginger with its monetary policy.
This approach massages the inflationary pressure that’s heaped hardships on many households. Since it’s not particularly convincing that the Fed has the political will to do what is necessary, NEM belongs on your list of stocks to buy in April.
Raytheon Technologies (RTX)
Raytheon Technologies (NYSE:RTX) is perhaps one of the most controversial offerings on this list. As you know, Raytheon has been in the news lately because of the Russian invasion of Ukraine.
In a joint venture with Lockheed Martin (NYSE:LMT), Raytheon is responsible for the development of the Javelin anti-tank missile.
Though warfare is always controversial, the Javelin has become a symbol of the Ukrainian resistance. Generally, Americans strongly support Ukraine in this conflict, thereby making RTX a feel-good story in a terrible circumstance.
Another factor to consider is Raytheon’s Stinger missile, which has devastated Russian combat aircraft.
Less of an iconic symbol, it’s been integral to the Ukrainian resistance. Because these weapons systems have been so remarkably effective, RTX has essentially received the best marketing opportunity ever.
Chevron (NYSE:CVX) is up more than 38% year-to-date and likely to continue climbing higher.
Even as the fervor for electric vehicles and their ancillary services continues to gain attention, the harsh reality is that fossil fuels are incredibly difficult to quit because of their inherently high energy density.
With the total global supply of oil and gas constrained due to the Ukraine flashpoint, CVX will probably move higher, whether we like it or not.
Expro (NYSE:XPRO) is intriguing because of its oil equipment and services business. As with any technology or innovation, infrastructure is everything when it comes to effective deployment.
Further, depending on how long the conflict in Ukraine drags on, Expro may enjoy a demand spike as global exploration activities increase.
On a year-to-date basis, XPRO is up nearly 9%. However, over the trailing year, shares have dropped 22%, suggesting that there’s more room to run for speculators.
Given the sudden relevance of hydrocarbons — something that might not go away due to exacerbated needs — XPRO could be one of the more viable stocks to buy in April.
Verizon Communications (VZ)
Naturally, as a telecommunications giant, Verizon is one of the core players in the 5G rollout. What’s important here is that irrespective of economic rumblings, Verizon will keep marching forward.
In large part, this is due to the consumer. Sacrificing connectivity is a no-no in the modern world so people will hold on despite financial woes.
If we suffer a recession, I’d be more comfortable encountering it with Hershey (NYSE:HSY) in my portfolio than without it.
As an investment geared toward the broader food-and-beverages industry, HSY is more tied to the essentials than something that belongs in the consumer discretionary sector. But beyond that, Hershey could be one of the recession-resistant stocks to buy.
You can call it the Coca-Cola (NYSE:KO) effect. Historically, analysts have mentioned the soft drink giant as a “recession-proof” stock because of its financial resilience. The thinking is that sugary products provide a cheap high, a respite from current troubles.
That argument also applies for Hershey’s products. Studies show that eating dark chocolate candy bars can reduce levels of the stress hormone cortisol.
Logically, if we do encounter an economic downturn, plenty of folks — including yours truly — will be significantly stressed. So, despite HSY getting off to a strong start with a 16% YTD performance, it remains one of the stocks to buy for further gains.
Employment services firm HireQuest (NASDAQ:HQI) is an intriguing speculative play on the labor shortage. Multiple factors coming out of the pandemic contributed, but among the most prominent was workers wanting to continue working from their home offices.
Employees only have limited resources until they will eventually be forced to get in line. Even highly compensated white-collar workers may discover they don’t have many choices. For instance, Apple (NASDAQ:AAPL) wants its workers to come back to the campus, which has caused some controversy.
Will disgruntled employees risk burning bridges with one of the best companies in the world? I doubt it. But if they and others follow through on their threats, you can expect the labor market to pivot favorably to companies like HireQuest.
On the date of publication, Josh Enomoto 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.