Nest eggs can set you up nicely for retirement. The stocks in your retirement account can get you closer to your long-term financial goals and offer some stability when you need it the most.
Younger investors tend to buy growth stocks because they have more time to wait for stocks to realize their full potential. However, as people grow older, they usually want more stability and less risk. Stuffing your portfolio with investments built to thrive in chaos can help investors outperform the market during uncertain times while receiving dividend payments.
These are some of the retirement stocks to consider for your nest egg if you want to withstand economic uncertainty.
Walmart (WMT)
People still have to buy products and services during any economic cycle. However, they may seek out more affordable products. Walmart (NYSE:WMT) shines when consumers are looking to save money. The company combines affordability with quality and can attract wealthier consumers as inflation continues to creep higher.
The stock has several components that retirees will like. It has a 1.39% dividend yield and a 31 P/E ratio. The stock has outperformed the S&P 500 over the past five years and is up by 12% year-to-date (YTD).
Walmart is still growing at a decent rate. The company generated 5.7% year-over-year (YOY) net sales growth in Q4 FY24. WMT’s continued strength in e-commerce and advertising can lead to accelerated revenue growth and higher profit margins.
Furthermore, Wall Street analysts feel confident about the American retailer. It’s rated as a strong buy with a projected 10% upside. The highest price target of $75.99 per share suggests a 28% upside from current levels.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) is another place people will continue to shop during any economic cycle. Sales may decelerate during slowdowns, but people will come back in force once the economy gets bullish again.
For now, the sales keep pouring in. Amazon reported a record $170.0 billion in net sales in Q4 of 2023. Domestic and international sales had double-digit growth rates during the record breaking quarter. Overall sales jumped by 14% YOY.
Clearly, Amazon is the leader in the cloud computing industry. And, it is projected to achieve a compounded annual growth rate (CAGR) of 16.40% from now until 2029. This industry has improved Amazon’s profit margins, and the company still has plenty of opportunities in this vertical.
The stock has outperformed the market with a 16% YTD gain. Also, shares are up by 68% over the past year. Wall Street analysts believe in continued gains, rating the stock a strong buy and projecting a gain of an additional 22% from current levels.
Visa (V)
People will continue to shop at places like Walmart and Amazon, and they’ll also continue to use their credit and debit cards. Visa (NYSE:V) is the leading financial company in the industry with a market cap above $500 billion. The fintech firm generated $8.6 billion in net revenue in the first quarter of fiscal 2024. Net income came in at $4.9 billion.
Revenue and net income grew by 9% and 17% YOY, respectively. Also, the company allocated $4.4 billion toward stock buybacks and dividends. Remaining strong in the quarter, consumer spending can help Visa report additional quarters with good earnings growth.
Visa regularly reports incredible profit margins. The company’s net profit margin came in at 56.6% in the quarter. Shares are up by 4% YTD and have gained 66% over the past five years. The stock has a 0.77% yield and trades at a 34 P/E ratio. Analysts are feeling bullish about Visa stock and give it a projected 15% upside from current levels.
On this date of publication, Marc Guberti held a long position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
