If you’re looking for safety, you don’t want just any port in the storm. You’re looking for a sure thing, or at least as sure as you can be when talking about the stock market. What you’re looking for are A-rated stocks to buy.
The “A” rating from the Portfolio Grader means that the stock is among the best. The Portfolio Grader rates stocks on an “A” through “F” scale, taking into account earnings performance, momentum, analyst sentiment and quantitative measurements.
And these stocks are relatively safe choices. Besides having top grades from the Portfolio Grader, these safe stocks should have consistent earnings and cash flow, even if the market should turn downward.
If you’re approaching retirement or are concerned about today’s economic climate, you’ll want to consider high-performing A-rated stocks. Here are seven from which to choose.
Ferrari (RACE)
You may not think Ferrari (NASDAQ:RACE), the maker of high-performance sports cars, is safe. But RACE stock is an excellent investment these days. The stock is up nearly 40% this year, and I think more will come.
Even though Ferrari is more of an old-school automotive stock (rather one that’s diving into the electric vehicle race), shares are in high demand. Ferrari’s vehicle deliveries last quarter were up 9.7% on a year-over-year basis. Revenues were up 20.5%. And earnings per share were up 25%.
And as Morgan Stanley’s Adam Jonas argues, Ferrari is a defensive play because of its strong pricing power and a long order backlog. Even if the economy sours, RACE should continue to do well.
RACE stock has an “A” rating in the Portfolio Grader.
Nvidia (NVDA)
Chipmaker Nvidia (NASDAQ:NVDA) is at the forefront of artificial intelligence. Nvidia’s shocking guidance for the second quarter, increasing its revenue target from $7.2 billion to $11 billion, fueled the runup in recent weeks of AI stocks.
The rise of tools such as OpenAI’s ChatGPT, powered by Nvidia technology, is leading to a massive increase in demand from computing and generative AI end users. And that’s playing right into the pockets of Nvidia shareholders.
NVDA stock is up 165% so far this year, and with its strong guidance, I expect it will easily withstand a downturn in the market.
Nivida has an “A” rating in the Portfolio Grader.
Oracle (ORCL)
Oracle (NYSE:ORCL) is a computing company too. And while it’s not nearly as exciting as Nivida’s AI advances, Oracle is in fine shape.
Revenue for the fiscal third quarter of 2023 was a gain of 45% from a year ago, reaching $4.1 billion. That’s helped push Oracle stock up about 30% in 2023.
Wall Street wants to see that momentum continue for the fiscal fourth quarter, which Oracle is scheduled to release after the market closes today. Analysts expect Oracle to see revenue growth between 17% and 19% and earnings per share between $1.56 and $1.60.
Q3 revenue was inflated because Oracle bought Cerner, a healthcare software company, last year. That’s why the Q4 numbers are down to a more reasonable level.
Oracle is a solid, safe pick here – particularly if it avoids unpleasant surprises in its earnings report. ORCL has an “A” rating in the Portfolio Grader.
Netflix (NFLX)
Streaming services company Netflix (NASDAQ:NFLX) might be my favorite safety stock right now. Because the company has a great product, loyal customers – and it’s finally taking steps to monetize them.
Netflix is finally cracking down on password sharing in its customer base. You can still share your password with someone who doesn’t live in your home. But you’ll get billed an extra $8 per month.
About 43% of Netflix’s customers share passwords, or about 100 million customers. Even if it gets 10% of those customers to pay an extra $8 per month, that’s close to an additional $1 billion in revenue.
That’s important money to have as Netflix works on creating more original content to keep up and fend off other streaming services.
NFLX stock is up 35% this year and has an “A” rating in the Portfolio Grader.
Crocs (CROX)
Crocs (NASDAQ:CROX) footwear probably isn’t for everyone. And that’s fine. They came out originally as a kind of boating shoe and resembled clogs more than anything.
But there’s absolutely no reason you can’t be comfortable holding CROX stock. I think it’s a fine defensive play right now.
Crocs made $884 million in revenue in the first quarter, gaining nearly 34%. And it also recorded an EPS of $2.61. On both counts, it handily beat analysts’ expectations.
Crocs isn’t a one-horse show anymore, either. Last year it completed its purchase of HeyDude, an Italian casual footwear maker.
Crocs is also pretty cheap, with a price-to-earnings ratio of only 11. CROX stock has an “A” rating in the Portfolio Grader.
Boeing (BA)
I’m not terribly concerned about a market downturn because I’m holding Boeing (NYSE:BA) stock. The aviation company had already withstood a downturn of its own because supply chain issues prevented the company from making new jets.
But those problems appear to be going away. The aviation company is increasing the monthly production of the 787 Dreamliner from three jets to four. And it’s installing a second production line at its plant in South Carolina.
Boeing is now trading at near 52-week highs as the market gets more confident that this will be a busy travel season and airlines will have powerful incentives to build out or upgrade their fleets.
BA stock has an “A” rating in the Portfolio Grader.
Wynn Resorts (WYNN)
The tailwinds pushing Boeing higher will also positively propel Wynn Resorts (NASDAQ:WYNN). The hospitality and entertainment company, with significant interests in Las Vegas and Macau, should bounce higher from a busy travel season at its resorts.
Barclays says that WYNN stock could have an upside of 30% this year. The first quarter results also pointed in that direction – Wynn reported revenue of $1.42 billion, an increase of more than 49% from the previous year.
With the memories of Covid-19 lockdowns fresh in their memories, people are more willing than ever to get out and experience the world. Wynn’s resorts offer an exciting place to burn off steam, and investors count on it being a safe play in 2023.
WYNN stock has an “A” rating in the Portfolio Grader.
On the date of publication, Louis Navellier had a long position in BA and NVDA. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
