7 Safe-Haven Stocks to Weather Any Storm


  • Johnson & Johnson (JNJ): Delivers innovative medicine and MedTech growth with solid U.S. performance.
  • Procter & Gamble (PG): Attained organic sales and EPS growth and returned billions to shareholders.
  • Pfizer (PFE): The non-COVID products grew its top-line, with a solid improvement in gross margin.
  • Read the article for more safe-haven stocks to weather any storm!
Safe-Haven Stocks to Buy - 7 Safe-Haven Stocks to Weather Any Storm

Source: Andy Dean Photography / Shutterstock

Investors often look to safe-haven equities for stability and reliable returns during uncertain economic times. Here are seven strong afe-haven stocks to buy that offer encouraging chances to endure financial disasters.

To begin with, the first has had notable growth in its markets, especially in the United States, due to its well-received product introductions and market penetration. The second one sustains its market leadership through effective operations and strong returns to shareholders while delivering consistent organic sales growth and profitability. Except for its COVID-19 products, the third one has significantly improved its margins and sales growth by concentrating on cost control and smart product introductions.

Moreover, the fifth company has seen significant revenue growth, particularly from its ex-Humira items, thanks to its varied portfolio and smart acquisitions. The fourth company’s consistent comparative sales growth demonstrates its capacity to draw in and keep consumers. The company ranked sixth, highlighting its financial stability and forward-thinking strategy for a smokeless future through its market development and efficiency measures. 

Finally, the seventh one’s omni-channel capabilities, remarkable development in eCommerce, effective inventory management, and robust membership programs all contribute to its market supremacy.

Safe-Haven Stocks to Buy: Johnson & Johnson (JNJ)

Negative Press Presents a Buying Opportunity with JNJ Stock
Source: Sundry Photography / Shutterstock.com

Sales of Innovative Medicine for Johnson & Johnson (NYSE:JNJ) reached $13.6 billion in the first quarter of 2024, exhibiting a noteworthy global growth rate of 2.5%. The U.S. market’s strong performance indicates effective market penetration and product acceptance, with an 8.4% growth rate. Notable double-digit growth rates for important goods, such as CARVYKTI (rise from $72 million to $157 million) and DARZALEX (21%), demonstrate the segment’s potential for quick expansion.

Conversely, MedTech sales grew at a robust 6.3% annual pace, reaching $7.8 billion. Notable successes in cardiovascular goods, with electrophysiology seeing double-digit growth of 25.9%, demonstrating the effectiveness of new product development and consumer acceptance. Segments such as orthopedics have demonstrated tenacity and adaptation in the face of obstacles like fewer sales days and competitive pressures, but they have managed to develop.

Finally, at $3.5 billion, or 16.6% of sales, the company’s strategic investment in research remained competitive, maintaining its dedication to innovation is essential to long-term prosperity.

Procter & Gamble (PG)

Procter & Gamble Union Distribution Center. P&G is an American Multinational Consumer Goods Company
Source: Jonathan Weiss / Shutterstock.com

Procter & Gamble’s (NYSE:PG) market success and product demand reflect the company’s steady organic sales growth rate. In Q3 2024, organic sales increased by 3%, which helped the company’s total revenue growth. This steady increase in organic sales shows that P&G can take market share, extend its clientele, and successfully compete across various product categories.

Moreover, Procter & Gamble also exhibits high profitability and operational efficiency, which support the company’s robust bottom-line growth. Core gross margin and operating margin gains were the main drivers of the 11% rise in core profits per share over the previous year. Procter & Gamble may increase its sales profits by increasing its core operations’ efficiency, indicating an operational edge and sharp cost control.

Further, Procter & Gamble distributes cash to shareholders through dividends and share repurchases, indicating its stability as a financial institution and confidence in its performance. In Q3, Procter & Gamble gave $3.3 billion back to shareholders. Therefore, the company demonstrates financial discipline and efficient capital allocation, reflected in its cash return to shareholders.

Safe-Haven Stocks to Buy: Pfizer (PFE)

Here's How Pfizer Stock (and Pharma) Stand to Benefit From Mylan Deal. Best Biotech Stocks to Buy
Source: Manuel Esteban / Shutterstock.com

In Q1 2024, Pfizer (NYSE:PFE) had an 11% increase in operational revenue, excluding Comirnaty and Paxlovid. Pfizer’s revenue growth was driven mainly by its commercial execution. A targeted marketing strategy and a sharp global distribution of commercial field personnel aided this. Notably, in-line medicines like Vyndaqel, Eliquis, and Abrysvo, combined with acquired items from Seagen, contributed considerably to revenue growth.

Additionally, Pfizer’s adjusted gross margin increased by 5.3% to 79.6% compared to last year’s first quarter. Several reasons contributed to the notable increase in gross margin. These include a favorable sales mix brought about by Comirnaty’s decreased sales volume, a product return adjustment for Paxlovid related to the U.S. government contract, and effective cost control throughout Pfizer’s production network. This enhancement highlights Pfizer’s emphasis on margin increase and cost control measures.

Finally, Pfizer demonstrates fundamental business strength and capacity to hit financial obligations despite obstacles presented by the post-COVID environment by increasing its full-year adjusted diluted EPS outlook by 10 cents.

McDonald’s (MCD)

McDonald's golden arches
Source: Vytautas Kielaitis / Shutterstock

For 13 straight quarters, McDonald’s (NYSE:MCD) has seen positive comparable sales growth. Comparable sales have increased by a solid 30% throughout the past four years. Global comparable sales rose by 1.9% in Q1 2024. The steadily increasing comparable sales growth reflects McDonald’s sharp tactics to increase foot traffic and revenue in all its markets. This pattern demonstrates McDonald’s ability to keep customers happy and relevant even in difficult economic times.

Moreover, consolidated revenues for the first quarter of this year were over $6 billion, up 5% (or 4% in constant currency) from the year prior. For the last twelve-month period and the quarter, systemwide sales to loyalty members across 50 loyalty markets were close to $25 billion and over $6 billion. Hence, the steady increase in income shows that McDonald’s can increase sales throughout its worldwide network. 

To sum up, sales to loyalty members across the system show how well loyalty programs work to increase consumer spending and engagement. Therefore, McDonald’s demonstrates its endurance and market power by growing its revenue base despite economic difficulties.

Safe-Haven Stocks to Buy: AbbVie (ABBV)

Closeup of AbbVie (ABBV) building corporate office, an American biopharmaceutical company with its headquarters in Lake Bluff, Illinois, USA
Source: Valeriya Zankovych / Shutterstock.com

In Q1 2024, AbbVie (NYSE:ABBV) reported adjusted profits per share of adjusted profits pers share of $2.31, above the forecast midpoint by 11 cents. These results demonstrate the company’s strong top and bottom lines. With total net sales of $12.3 billion, revenue was around $400 million higher than anticipated. Crucially, this overachievement was mostly ascribed to the growth platform of the ex-Humira, which had a revenue increase of over 15% during the quarter.

Additionally, the ex-Humira growth platform has mainly driven AbbVie’s revenue growth. Notably, in their fifth year on the market, drugs like Rinvoq and Skyrizi have demonstrated exceptional performance. Specifically, Rinvoq generated over $1.1 billion in global sales, showing a 61.9% operational increase. Meanwhile, Skyrizi’s global sales hit $2 billion, reflecting 48% operational growth. The substantial rise observed in these essential items highlights AbbVie’s capacity to create and promote efficacious treatments apart from its primary medication, Humira.

Lastly, AbbVie’s strategic actions include the acquisition of ImmunoGen. This helped the company enter the solid tumor market more quickly and fortify its oncology pipeline. Favorably, ImmunoGen’s merger has gone well, which has helped the business develop overall. 

British American Tobacco (BTI)

British American Tobacco logo on a building
Source: DutchMen / Shutterstock.com

British American Tobacco (NYSE:BTI) gained over 3 million new customers in 2023 alone — a significant increase of 1.1 million. This increase broadens the consumer base and creates prospects for revenue development. Approximately 75% of new category revenue came from the top 10 new category markets, which showed rapid growth velocity. The category contribution margin in these areas is over 20%, demonstrating strong potential for generating income.

Furthermore, British American Tobacco prioritizes continuous improvement projects to increase cost efficiency. By 2025, the company hopes to save at least £1 billion more. These increases in efficiency support financial flexibility and lessen inflationary pressures. The corporation exits non-strategic areas and continuously assesses its stakeholders, such as ITC, as examples of strategically evaluating its capital allocation and global footprint. Hence, British American Tobacco can increase value and optimize resource allocation through strategic realignment.

Finally, British American Tobacco outlines achievable long-term financial goals, such as having 50% of revenue from smokeless products by 2035. Thanks to this strategic vision, investors can now see and feel confident in BTI’s development trajectory.

Walmart (WMT)

Image of Walmart (WMT) logo on Walmart store with clear blue sky in the background
Source: Jonathan Weiss / Shutterstock.com

Walmart’s (NYSE:WMT) eCommerce sales increased significantly in Q1 2025, growing at 21% worldwide. Sales on the marketplace and store-fulfilled pickup and delivery were the main drivers of this rise. The company’s omni-channel strategy is working, as seen by the marketplace and store-fulfilled pickup and delivery programs. These have a major positive impact on eCommerce growth. More marketplace offers and same-day delivery are just two new features that bolster its omni-channel capabilities.

Additionally, Walmart showed good inventory control by reducing its worldwide inventory by 2.7%. In particular, Walmart U.S. decreased its inventory by 4.2%, demonstrating effective inventory turnover. The firm concentrated on improving the variety of products offered, especially for private brands, which increased gross margins. The first quarter saw a rise in private brand penetration, with grocery penetration at 0.30%.

Finally, memberships in Walmart’s membership programs, such as Sam’s Club and Walmart Plus, have been growing by double digits. For example, Sam’s Club U.S. saw record-breaking member penetration and counts, leading to a 13% increase in membership revenue.

As of this writing, Yiannis Zourmpanos held long positions in JNJ, PG, PFE, and BTI. 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.

Article printed from InvestorPlace Media, https://investorplace.com/2024/05/7-safe-haven-stocks-to-weather-any-storm/.

©2024 InvestorPlace Media, LLC