Bunker Portfolio: 3 Stocks to Own Through Economic Turmoil


  • Goldman Sachs CEO David Solomon cautions against overconfidence in the Federal Reserve’s ability to achieve a smooth economic slowdown, highlighting lingering inflationary pressures, geopolitical risks, and a slowdown in lower-tier consumer spending.
  • Adobe Inc. (ADBE): A consistently growing company that will grow tremendously, and greatly increase your portfolio’s value. 
  • NextEra Energy Inc. (NEE): Stable earnings growth, expansion into the production of clean hydrogen, and consistent dividend growth make this utility stock worth a look.
  • Amazon.com Inc (AMZN): Impressive earnings growth, financial stability, and international infrastructure investments make Amazon an attractive buy.
economic turmoil stocks - Bunker Portfolio: 3 Stocks to Own Through Economic Turmoil

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Goldman Sachs CEO David Solomon has expressed caution about the Federal Reserve’s ability to achieve a smooth economic slowdown, citing lingering inflationary pressures and geopolitical uncertainties. While the market anticipates a gentle landing, Solomon points out higher uncertainty, emphasizing that the lower tier of the economy is experiencing a slowdown in consumer spending.

Despite the strength in the upper half of the economy, Solomon’s recent remarks indicate a more bearish outlook compared to his previous statements in September. This worry necessitates you to hold some strong economic turmoil stocks that are set to weather whatever the economy throws at it.

Adobe Inc. (ADBE)

A white and blue building with the Adobe logo is pictured in front of a blue sky
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Adobe Inc. (NASDAQ:ADBE) is one of the leaders in multimedia services and creativity software, being a top product for companies and citizens. They offer a vast set of products from editing software to a creative cloud, and continue to update and improve their products. ADBE’s stock is valued at $551.82  and has grown 167% since last year, making it one of the top-growing tech companies.  

With artificial intelligence’s (AI) implementation in many products, bolstered tech innovation and massive growth in the multimedia space, Adobe looks to capture and ride on the wave of the growth of the technology sector. The tech sector is poised almost to quadruple its value in the next few years, growing at a CAGR of 25.73%, as reported in 2021. 

Adobe can outpace their competition with their new products already incorporating AI, making them versatile and a key customer for many companies. Having a YTD increase of 57.97% and showing tremendous growth in the past, it’s very unlikely the future will hold anything short of success.  

As new technology starts to become the norm in our society, investing in Adobe will be essential to grow your investments, as the company’s trajectory will be an essential addition to your portfolio. 

NextEra Energy Inc. (NEE)

Nextra Energy (NEE) website on a mobile phone screen
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NextEra Energy Inc. (NYSE:NEE) is a Florida-focused company that produces, transmits and sells electricity. It generates clean energy through wind, solar, natural gas, and other means. As a utility company, NextEra Energy is relatively unaffected by economic turmoil since electricity is necessary even during recessions. Since its sales are secured by government-regulated rates and long-term contracts, the company reports consistent revenues, making it a safe and stable investment. The stock currently trades for $55.04, and the median 12-month price forecast from 20 analysts is $70.76, which represents a 28.56% increase. 

For the full year of 2023, NextEra Energy delivered adjusted EPS of $3.17, up 9.3% YoY. Management expects adjusted EPS growth to continue at an annual rate of 6% to 8% through 2026, a testament to the company’s earnings stability. Also, NextEra Energy currently offers a dividend yield of 3.45%. Given the predictability of its operating cash flow, the company, in its latest earnings report, reiterated its commitment to growing its dividend by 10% each year through at least 2024. 

Moreover, in January, NextEra Energy announced the completion of its pilot clean hydrogen facility in Florida. Through the clean hydrogen hub, the company hopes to learn more about clean hydrogen and how it can be used to provide low-cost, clean energy. The development of the hydrogen facility could help the company hedge against the volatile cost of fuel and diversify its methods of generating electricity. 

Amazon.com Inc (AMZN)

Closeup of the Amazon logo at Amazon campus in Palo Alto, California. The Palo Alto location hosts A9 Search, Amazon Web Services, and Amazon Game Studios teams. AMZN stock
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Amazon.com Inc (NASDAQ:AMZN) is an e-commerce giant that also operates cloud computing, artificial intelligence, digital streaming, and online advertising segments. AMZN is up 13.97% YTD, and has a 12-month median price target of $205.00, representing an increase of 18.13% from its current price of $173.16. 

Valued at $8.80 trillion in 2024, the e-commerce market is expected to reach $18.81 trillion by 2029, exhibiting a CAGR of 15.80%. This growth is largely due to increasing internet penetration and advancements in technology such as 5G Wi-Fi, and social shopping. 

In Q4 2023, Amazon sailed past analyst estimates, reporting net income of $10.6 billion, compared to $278 million a year earlier. The company also boasts $84.95 billion in cash from operations (TTM) and a gross profit margin of 46.98% (TTM), well above the sector median. These metrics showcase Amazon’s financial strength and operational efficiency, making it a safe bet for stability and resilience during economic turmoil.

Furthermore, Amazon is actively investing in so-called nearshoring, the act of companies relocating businesses to regions closer to the United States. For example, Amazon Web Services Mexico, a unit of Amazon, recently announced a $5 billion investment in Mexico to open multiple data centers amid high demand for cloud services. Not only will this investment serve as a commitment to international expansion, but it will also shield Amazon from future geopolitical tensions and supply-chain disruptions, allowing it to weather economic headwinds.

On the date of publication, Michael Que 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.

The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.

Article printed from InvestorPlace Media, https://investorplace.com/2024/02/bunker-portfolio-3-stocks-to-own-through-economic-turmoil/.

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