Three businesses stand out in the market as beacons of potential during a turbulent economic period. Every business has recognized and seized upon unique development opportunities in the face of uncertainty. In turn, every investor is now looking for safe stocks that will keep their investments secure. That’s why these three companies are so appealing.
The first company’s outstanding profitability highlights its tenacity and potential for long-term shareholder return. The second company has remarkable worldwide market share increases. This results from its superiority over rivals and its skill in navigating intricate market dynamics. Meanwhile, the third company has a high rise in organic adjusted operating income. This signifies the company’s operational strength and fortitude in facing difficulties.
These opportunities result from the strategic choices and actions made by these major players in the sector. For instance, the first business established itself as a medical device and pharmaceutical industry leader, concentrating on cutting-edge healthcare solutions. The second company’s growth in market share has been fueled by its adaptability in modifying pricing methods and taking advantage of local market characteristics. Lastly, in a similar vein, the third one emphasizes its capacity to prosper in a variety of market circumstances.
Johnson & Johnson (JNJ)
In Q1 2024, Johnson & Johnson (NYSE:JNJ) derived a progressive net earnings of $5.4 billion. Against a basic loss per share of $0.19 in Q1 2023, this is a solid boost in diluted EPS (i.e., $2.20). After deducting exceptional factors and amortization expenditure of intangible assets after tax, adjusted net earnings came to $6.6 billion, marking an adjusted diluted EPS of $2.71.
Moreover, against Q1 2023, this translates into gains of 3.8% year-over-year (YoY) in net profits and a 12.4% YoY boost in adjusted diluted EPS. Notably, adjusted diluted EPS grew by 12.8% YoY (In operational terms).
Further, the Innovative Medicine segment’s global revenues totaled $13.6 billion, up 2.5% YoY and mostly due to an 8.4% gain in the US. The global operational sales increase was 8.3%, considering the COVID-19 vaccine’s effects. Solid YoY growth rates were observed in DARZALEX (21%), TECVAYLI (111.1%), and CARVYKTI (118.1%). Hence, this demonstrates the productive implementation of these medicines and robust demand in the oncology market.
Overall, Johnson & Johnson’s Innovative Medicine portfolio has demonstrated strong performance and stability promise, reporting a double-digit growth from the segment’s nine core assets.
Procter & Gamble (PG)
Procter & Gamble (NYSE:PG) derived a considerable uplift in its market share. Comparing Q3 2024 to Q1 2024, the aggregate value share grew, with 29 of the top 50 category-country combinations maintaining or increasing their market share. This increase in market share demonstrates the company’s capacity to beat competitors and maintain a competitive edge.
Additionally, European priority markets had a 7% YoY rise in organic sales, four points of volume growth, and a 1% gain in value share from Q3. Due largely to pricing changes in reaction to the depreciation of the Argentine peso and high base periods in Mexico and Brazil, organic sales in Latin America increased by 17% YoY.
Moreover, these calculated price changes and volume growth in important markets show the company’s agility and strategic insight in managing regional market dynamics. Thus, Procter & Gamble’s bottom line has performed admirably, as seen by the 11% YoY increase in core EPS from Q3 2023. Overall, this significant increase in EPS is a sign of strong pricing tactics and cost control. You can see why this made our list of safe stocks.
Restaurant Brands (QSR)
Restaurant Brands (NYSE:QSR) uplifted the organic adjusted operating income by 7.7% YoY (Q1 2024). This reflects solid progress on the bottom line of the business. The effects of acquisitions and divestitures are excluded from organic growth in adjusted operating income. This provided a more accurate mark of the company’s operational edge and cost-controlling sharpness.
Moreover, individual brands under Restaurant Brands have done well in a range of markets. These brands include Popeyes Louisiana Kitchen, Tim Hortons, Burger King, and Firehouse Subs. For instance, Tim Hortons had a 7.5% YoY gain in comparable sales in Canada. This demonstrates Restaurant Brands’ lead as a breakfast destination and capacity for customer preference adaptation.
Moreover, Restaurant Brands is not just focused on financial growth but also on improving its brand image, customer experience, and operational efficiency. Therefore, strategic investments like Burger King’s Reclaim the Flame program, which involved a $400 million expenditure on digital infrastructure, restaurant renovations, and advertising, highlight the company’s commitment to long-term development and competitiveness.
In summary, this focus on enhancing the customer experience and brand image instills optimism in the audience about the company’s future growth and success. If you are looking for safe stocks, this is a solid pick.
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.
