Finding opportunities that offer stability and development is crucial for investors amidst the wild swings in the stock market. These equities are excellent choices because they exhibit stability and bright prospects despite market turbulence. These are the crash-resistant stocks you should consider
The first company’s solid increase in worldwide sales indicates both the strength of the market and the effectiveness of its penetration techniques, establishing it as a wise investment. Comparably, the second company’s calculated pricing strategies and effective market share increase highlight its potential for sustained development and stability across various categories.
Meanwhile, the third one has the fundamental capability to post revenue growth, which is impressive given the industry’s problems. This is particularly true in light of its strong pharmacy operations and sharp acquisitions that support its success. These companies are sharp choices because of their solid historical leads and resilience against market downturns.
Overall, what distinguishes these companies, notwithstanding their leads, is their combined fundamental capacity to deliver performance stability in the face of a volatile stock market.
Crash-Resistant Stocks: Johnson & Johnson (JNJ)
In the first quarter of 2024, Johnson & Johnson (NYSE:JNJ) demonstrated solid growth in the top line. Its global sales totaled $21.4 billion, up 3.9% from last year’s period. One critical measure of Johnson & Johnson’s core strength in the pharmaceutical market is the rise in top-line. This expansion indicates that the company’s products are in demand in several locations and that its market penetration methods are working.
Moreover, the US market outperformed the foreign market with a solid growth rate of 7.8%. Operating sales increased at the consolidated level, excluding the COVID-19 vaccine. They were 7.6% globally and 7.4% outside of the US. This boost demonstrates the fundamental strength and diversity of Johnson & Johnson’s product range and shows that the company’s growth isn’t only dependent on vaccine sales.
Finally, with revenues of $13.6 billion, the Innovative Medicine business is a vital contributor to Johnson & Johnson’s consolidated top-line. Innovative Medicine had a 2.5% growth in revenue globally despite the adverse state of the international market, demonstrating the high demand for the company’s advanced pharmaceutical products.
Procter & Gamble (PG)
In several product categories, Procter & Gamble (NYSE:PG) reflects vital leads that have fueled the company’s expansion. This is due to progressive factors, including higher prices in Europe and Latin America, the grooming business had double-digit organic sales growth in the third quarter of fiscal year 2024.
Similarly, the hair and home care categories had solid single-digit growth in organic sales. These were based on higher prices, and volume increases from product advancements. However, in previous years, organic sales have been down in the skin, personal, and baby care categories.
Further, metrics like value share in focus markets and all-outlet value indicate show how well Procter & Gamble can increase its market share. For example, Procter & Gamble’s all-outlet value share increased by 0.1% in the US over the previous year, demonstrating the company’s competitiveness in the market. Similarly, P&G increased its value share by 100 basis points throughout the last three months in the European Focus markets.
Overall, the increase in market share reflects the efficacy of P&G’s brand initiatives and its capacity to sustain a competitive advantage in important areas.
CVS Health (CVS)
CVS Health (NYSE:CVS) had total revenues of over $88 billion for the first quarter of 2024, up about 4% from the previous year’s period. Revenues in the Pharmacy, consumer Wellness, and Healthcare Benefits segments increased despite the difficulties faced by the Medicare Advantage segment. Similarly, revenue for the Pharmacy and consumer Wellness division reached almost $29 billion, up about 3% from the previous year.
Moreover, the Pharmacy and Consumer Wellness (PCW) business area showed resiliency, with contributions from immunizations and higher prescription volume driving revenue growth. Strong growth in the pharmacy industry is indicated by same-store pharmacy sales, which have increased by more than 7% over the previous year. The rise in pharmacy operations reflects a roughly 6% increase in same-store prescription volumes.
Additionally, CVS Health may take advantage of market expansion prospects due to its diverse asset base. Increasing pharmacy services, promoting biosimilars, and investing in resources for healthcare delivery are examples of growth efforts. In short, the Health Services segment’s revenue increase is attributed to the purchase of Oak Street Health and Signify Health. Be smart and grab these crash-resistant stocks.
As of this writing, Yiannis Zourmpanos held long positions in JNJ and CVS. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
