3 Stocks to Safeguard Your Investments During a Market Meltdown


  • Based on their leadership in their sectors, these companies hold stable growth potential against market ups and downs.
  • Johnson & Johnson (JNJ): It delivers solid earnings growth and margin expansion, with uplifting adjusted diluted EPS.
  • McDonald’s (MCD): The chain focuses on global expansion and digital transformation, with record mobile app orders and successful loyalty programs.
  • Restaurant Brands (QSR): The company demonstrates strong segment performance, digital sales growth and a focus on modernization.
Defensive Stocks to Buy - 3 Stocks to Safeguard Your Investments During a Market Meltdown

Source: wan wei / Shutterstock.com

In today’s uncertain market, securing investment returns is essential to protect your wealth from future downturns. Three businesses stand out as islands of stability amid geopolitical unrest and economic uncertainty. These massive companies in the industry provide defensive equities that are attractive buys for investors looking to strengthen their holdings.

The first one shows substantial expansion in margins and profit growth. As a fundamental requirement, its diverse range of medical equipment and medicines offers a robust platform for stability and future growth.

The second one has robust returns, due to its strategy focus on digital transformation and worldwide development. As food consumption is always vital, the corporation may exploit digital channels and grow its worldwide footprint, despite macroeconomic problems. Strong loyalty programs and record mobile app orders support long-term sales growth and consumer engagement.

Lastly, the third one focuses on modernization, has great sector performance and is growing in digital sales. The corporation reduces the dangers associated with excessive dependence on a particular brand or consumption topic by maintaining a broad brand portfolio.

Johnson & Johnson (JNJ)

A red Johnson & Johnson (JNJ) sign hangs inside in Moscow, Russia.
Source: Alexander Tolstykh / Shutterstock.com

Johnson & Johnson’s (NYSE:JNJ) net earnings for the quarter came to $5.35 billion, with diluted earnings per share at $2.20. While adjusted diluted profits per share climbed by 12.4% to $2.71, adjusted net earnings increased by 3.8% to $6.6 billion. Similarly, diluted EPS from adjusted operations grew by 12.4%.

Additionally, Johnson & Johnson has demonstrated effective cost control and profitability. This is reflected in the significant increase in earnings, both in absolute terms and on a per-share basis. The adjusted EPS and margin expansion increase signifies the company’s fundamental capacity to derive greater profits from its activities.

Furthermore, Johnson & Johnson’s strategic acquisitions, such as Shockwave Medical and Ambrx, aim to enhance the competitive strength of its product portfolio.

Moreover, the Innovative Medicine segment has $13.6 billion in revenues and a 2.5% global growth rate. On the other hand, MedTech’s sales of $7.8 billion represented a 6.3% increase.

Johnson & Johnson has a varied portfolio of medicines and medical devices. This allows it to seize opportunities in many healthcare categories. These results indicate a balanced portfolio approach and efficient administration of several business units.

McDonald’s (MCD)

New McDonalds Being Built in 2020, Close Up of Main McD Sign
Source: Retail Photographer / Shutterstock.com

McDonald’s (NYSE:MCD) targets to reach 50,000 locations worldwide by the end of 2027 as part of a planned expansion. The company opened its 6,000th location in China, reflecting its focus on rapidly growing internationally, even in the face of obstacles like the Middle East conflict.

Hence, this affects the International Developmental Licensed Markets division.

McDonald’s also uses technology and digital media to improve customer experiences and boost revenue. Increased loyalty sales and record mobile app orders are indicators of effective digital penetration and engagement tactics. Thus, the increased frequency of devoted consumers’ spending can be attributed to the personalization of experiences through loyalty programs.

Additionally, customers have responded favorably to McDonald’s creative marketing initiatives, such as the WcDonald’s campaign and menu upgrades like Best Burger. These moves have boosted category sales and brand enthusiasm.

With over 6 billion impressions and around 100,000 mentions on social media, McDonald’s marketing campaigns are effective due to strong customer interaction.

Overall, there is consistent growth against flat to declining industry traffic in major markets, including the United States, Australia, Canada, Germany, Japan and the United Kingdom.

Restaurant Brands (QSR)

a tray of food from popeyes
Source: Tony Prato / Shutterstock.com

Solid segment performance across Popeyes, Tim Hortons, Burger King and Firehouse Subs for Restaurant Brands (NYSE:QSR) in Q1 2024. Each sector demonstrates the robust and appealing success of Restaurant Brands’ varied brand portfolio. By deriving growth across several market segments, Restaurant Brands reduces the downsides of relying too much on one brand or market theme.

Further, the organically adjusted operating income of the business increased by 7.7%. The rise in organic adjusted operating income indicates that Restaurant Brands is increasing revenue, while efficiently controlling its expenditures and operating costs. 

Additionally, the company’s digital sales are increasing across all of its categories. Tim Hortons is one area where this is particularly evident. Rising digital sales are evidence of Restaurant Brands’ effective use of technology to improve client interactions and boost revenue.

Elevated levels of digital penetration indicate effective digital marketing tactics, optimized ordering procedures and robust consumer interaction via digital platforms.

Finally, a $300 million investment has been made to renovate Burger King locations, which signifies Restaurant Brands’ focus on updating their restaurant locations and improving the customer experience.

As of this writing, Yiannis Zourmpanos held a long position in JNJ. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.

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