Turmoil in the market can put even the most seasoned investors at unease. Thankfully, several stocks for uncertain times can help weather the storm. These stocks show promise of stability, consistent returns and resilience during unfavorable market conditions.
An uncertain economy, commonly referred to as a “bouncy” economy is when the future of the economy can be hard to predict with several unknowns on the horizon. This year, inflationary concerns and questions over interest rate cuts have caused several investors to worry about an impending recession.
While uncertain times can certainly drag share prices lower, investors don’t necessarily need to stay out of the market. Some companies have the potential to outperform major stock indexes in a poor market environment. Investing in these stocks can help insulate portfolios against long-term risks.
On that note, here’s a look at three companies set to perform well during uncertain times.
Monster Beverage Company (MNST)
As a key energy drink market player, Monster Beverage Company (NASDAQ:MNST) is a good investment in good times and bad. Since its public debut in 1985, the company has generated monster returns with its stock soaring 57,475%.
Much of this success can be attributed to the company’s founders, who leveraged the popularity of action sports like UFC and Nascar to promote its eponymous drink. This eventually led to a strategic partnership with Coca-Cola (NYSE:KO), which now holds a 17% stake in the company.
While Monster is most famous for its namesake drink, it also owns a bevy of subsidiary alcohol, teas and coffee brands. This diversification has contributed to Monster’s incredible financial performance over the years. The company reported $1.9 billion in revenue in its most recent quarter, up 2.5% year-over-year. This comes amidst an increase in the per-capita consumption of energy drinks. As for its outlook, Monster plans to implement a 5% price hike across its core brands. However, it remains confident in the long-term potential of its energy drinks division.
Monster Beverage’s strong market position and worldwide presence make it one of the best stocks for uncertain times. Despite the recent slowdown in the U.S. energy drinks market, the company is poised to remain resilient against the backdrop of a thriving global market.
Walmart (WMT)
Investing in companies with well-diversified businesses and strong market positions is key to weathering unfavorable market conditions, and this is exactly what makes Walmart’s (NYSE:WMT) stock so appealing.
The company’s core business revolves around its vast network of supermarkets, hypermarkets and discount stores that it operates through its three core brands, Walmart U.S., Walmart International and Sam’s Club. This is complemented by a thriving e-commerce business in which the company has invested heavily over the last few years.
Sales at its physical store and online business have translated to massive gains for the supermarket giant. In its previous quarter, WMT reported a 6% growth in revenue year-over-year and a 21% uptick in global e-commerce sales. Looking ahead, Walmart anticipates a 3.5% to 4.5% rise in net sales for the full year.
With optimistic growth targets and diversified business, Walmart is among the top stocks for uncertain times, poised to easily weather the economic uncertainty.
Procter and Gamble (PG)
Procter and Gamble’s (NYSE:PG) strong portfolio of brands makes it a strong buy in any macroeconomic environment. The company’s offerings span several segments, including beauty, healthcare and baby feminine and family care. This has made the company a global powerhouse in the consumer goods market.
P&G has stood the test of time, proving its resilience through several economic downturns, including the 2008 financial crash. The company’s highly diversified business and strong brand name positioned the company for swift recoveries. Amid a recent market sell-off, P&G’s share price soared to an all-time high of $170.92, further underscoring its resilience.
P&G’s prowess is fairly evident in its latest earnings report. The company reported earnings per share (EPS) at $1.40 versus the estimated $1.37. Net sales for the period remained flat but sales volume grew 1%. P&G attributes this to an increase in demand across its grooming, healthcare, fabric and home-care segments. It anticipates a 2% to 4% increase in revenue growth.
As P&G continues to invest in its segments and expand its reach, the company is poised to generate lucrative returns for investors. Its wide moat and strong financials make this one of the best stocks for uncertain times.
On the date of publication, Divya Premkumar did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
