Investors should be looking for the top stocks to buy in the current bear market. The chances of finding a good deal increase during hard economic times when there’s blood on the streets. Moreover, the recently released inflation data was far from ideal, significantly increasing the likelihood of an oversized rate hike from the Federal Reserve. Therefore it’s an ideal time to load up on a few top stocks to buy before the bear market ends.
Naturally, there is plenty of risk in investing in stocks right now. That’s mainly because there is much room for stocks to fall. However, in the long-term outlook, several stocks are trading at beaten-down valuations, which easily regain the gains lost this year and then some. The short-term turbulence makes it an ideal time for investors to be greedy and scoop up stocks with rock-solid fundamentals and encouraging outlooks. That said, here are seven stocks to buy before the markets turn green again.
|CCRN||Cross Country Healthcare||$34.55|
One of the top stocks to buy, Coca-Cola (NYSE:KO) has been an anomaly in the current bear market, down just 4.5% year-to-date, while the broader market is down by double-digit margins. The beverage giant has held firm and is benefitting from post-pandemic tailwinds. Moreover, despite inflationary pressures, its earnings rose 4% in its most recent quarter, a testament to its ability to raise prices effectively.
Apart from the pandemic-related demand shifts, KO also launched multiple growth initiatives. It has made inroads in the flavored alcoholic beverages segment with Coke Starlight. Moreover, it is also expanding its product base in energy drinks, zero-calorie sodas, and water. Therefore, the consumer staples stock is a long-term winner and offers an incredible dividend yield of over 3.15% with 59 consecutive years of payout growth. Also, it is trading at a bargain compared to its historical price multiples, which further adds to its attractiveness.
DraftKings (NASDAQ:DKNG) is a leading iGaming juggernaut since launching a decade ago. Like other growth stocks, DKNG has shed a ton of value in the stock market, but its underlying business continues to impress each quarter. Its business is focused on expanding revenues, shrinking losses, and gobbling up market share from its competition.
DKNG has had a tremendous year so far, achieving legalization in multiple states across the U.S. while having several territory expansions left to support its massive total addressable market. User interest in the business remains high, and the company has also been diversifying its portfolio into general gaming/gambling and into the high-growth arena of NFTs. The company notes that its NFT offerings have been over-subscribed. Moreover, with New York expected to play a major role in expanding company revenues in the future, DKNG stock is an incredible pick for the long haul.
Nio (NYSE:NIO) is a leading Chinese electric vehicle maker that has taken a beating over the past several months. The EV giant has been plagued by myriad supply chain troubles that have slowed down production this year. However, its strong performance in the third quarter suggests that its headwinds are easing.
In its third quarter, NIO delivered a remarkable 31,697 vehicles, up 29.3% from the prior-year period. Nio’s extended its streak to four months in a row, delivering over 10,000 vehicles while achieving record levels for September. Moreover, the firm plans to ramp up production volumes in the fourth quarter with new models, and with headwinds easing, it is likely to notch up another record in the quarter. NIO stock is remarkably cheap compared to its peers, and with a solid growth runway ahead, it’s perhaps the best EV stock to invest in at current prices.
Ford Motor (F)
Top stock to buy, Ford Motor (NYSE:F) saw its shares slump after the firm stated that its third-quarter operating profit would come in lower-than-anticipated. Nevertheless, it expects to rebound emphatically in the fourth quarter, which suggests that the market is overreacting. It has maintained its bullish guidance for the year, and robust demand will enable the company to pass cost increases to its customers as needed effectively. With F stock trading at a depressed valuation, shareholders have a strong margin of safety even if it has reduced its medium-term forecasts.
Ford expects its earnings for the year’s second half to be in line with the massive $6 billion adjusted operating profit it posted in the first half. Also, it is pursuing its aggressive Ford+ strategy to reduce structural expenses while rapidly growing its EV capacity effectively. If everything goes well, its adjusted operating margins could effectively reach 10% by 2026.
Coupang (NASDAQ:CPNG) is the top eCommerce business in South Korea, often referred to as the “Amazon” of the region. It is the clear leader in the sector and is ten times larger than the second-biggest player in the country. CPNG has been growing at an amazing pace over the past several quarters, comfortably outperforming the broader market. Moreover, a report from research firm Euromonitor International states that the South Korean eCommerce market is expected to post a 10.4% annualized growth rate to reach $291 million by 2025, making it the third largest eCommerce market globally.
CPNG still has plenty of room to grow in its domestic market. Moreover, it has invested in other profitable verticals, including video, fintech, and fast-food delivery. Also, it plans to move into new markets, such as Singapore and Japan, to expand its TAM further. Moreover, it’s been posting strong improvements in profitability and has generated healthy profits despite inflationary pressures. Therefore, CPNG is arguably the crème de la crème of eCommerce plays at this time.
Another one of the top stocks to buy is Petrobras (NYSE:PBR), a Brazilian oil and gas play that owns robust upstream assets proven to be highly profitable in the current environment. Its business has been growing at an incredible pace due to higher oil prices this year. It reported a solid 70% revenue gain during the first half, with earnings per share rising to $2.65. Moreover, it offers a remarkably high dividend yield effectively covered by strong profits.
Petrobas benefits from its high-quality assets, including its pre-salt layer in the South Atlantic. It can produce high-quality crude oil, which warrants premium prices in global oil markets but, perhaps more importantly, its low production costs. Oil producers with similar productive capabilities aren’t operating with such high-profit margins. Moreover, with oil prices expected to remain high in the near term, PBR stock’s current price is a steal.
Cross Country Healthcare (CCRN)
Cross Country Healthcare (NASDAQ:CCRN) provides consultancy and talent management services to the U.S. healthcare sector. It has benefitted immensely from the tight labor market in the past couple of years. Consequently, its operating results have surged to record highs, registering strong growth across all its key segments. Sales have improved by 50% in 2021 to $1.68 million, while its net income has shot up a spectacular 1,115%.
CCRN recently released its second-quarter results with upsides at the top and bottom line compared to consensus earnings estimates. Consolidated sales came in at $754 million, 127% higher on a year-over-year basis. As we advance, analysts expect the company’s top-line results to rise 60% this year while its earnings per share rise 53%. The firm will continue to benefit from an aging population over the long term; therefore, it’s an incredible wager for the long haul.
On the date of publication, Muslim Farooque 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.