Stocks may have soared in April, but just remember the big gain only unwound the losses suffered in February and March. There’s still a risk of another sizable pullback.
It’s a lot for investors to take in. It’s so much, in fact, that many people may be tired of trying to navigate the stock market’s every twist and turn. If you’re one of these fatigued investors, fortunately, there’s a solution. That is, just stick with stocks built to stand up to anything the market can throw at them. Here are three such names to consider adding to your portfolio.
Image source: Getty Images.
They may suffer the occasional knee-jerk setback. By and large, though, investors understand these companies are capable of standing up to almost any challenge.
Stocks may have soared in April, but just remember the big gain only unwound the losses suffered in February and March. There’s still a risk of another sizable pullback.
It’s a lot for investors to take in. It’s so much, in fact, that many people may be tired of trying to navigate the stock market’s every twist and turn. If you’re one of these fatigued investors, fortunately, there’s a solution. That is, just stick with stocks built to stand up to anything the market can throw at them. Here are three such names to consider adding to your portfolio.
Image source: Getty Images.
Alphabet
It wouldn’t be accurate to say Alphabet (GOOG +0.17%)(GOOGL +0.31%) is entirely immune to economic headwinds. It wouldn’t be inaccurate to say, however, that it’s stunningly resilient. Even as the COVID-19 pandemic spread across the world, the company’s revenue during the second quarter of 2020 fell by only 2% year over year, and it more than recovered a year later despite the economic uncertainty lingering at the time.
Credit the nature of its flagship business. Google remains most people’s chosen gateway to the World Wide Web, handling 90% the planet’s web searches, according to data from Statcounter. That’s not apt to change, no matter what the future holds.
Alphabet
Today’s Change
(0.31%) $1.18
Current Price
$385.98
Alphabet is more than just Google, of course. In addition to YouTube, the company operates a major cloud computing business and owns the popular mobile operating system Android.
The same premise applies to these operating units, though. That is, demand for them isn’t likely to collapse under most circumstances. Consumers and corporations alike have made these offerings an indispensable part of their daily routines.
American Express
There was a time when credit card companies felt the impact of economic turbulence. As the quest for convenience has marched on, however, the usage of credit cards is displacing cash. The Federal Reserve reports that in the United States, the number of credit card payments has more than doubled since 2016, while cash usage has been halved.
American Express
Today’s Change
(-0.64%) $-2.05
Current Price
$321.00
This obviously bodes well for all credit card outfits, but especially for American Express (AXP 0.64%), which tends to serve more affluent consumers. Indeed, despite the ongoing conflict in the Middle East at the time against a broader backdrop of economic malaise, last quarter’s revenue was up 11% year over year, driving a 15% improvement in net income. Moreover, the average card member increased their purchases to the tune of 9% in the first quarter, with restaurants and travel accounting for much of this growth. Its cardholders really are quite resilient.
Vertex Pharmaceuticals
Finally, add Vertex Pharmaceuticals (VRTX 0.66%) to your list of monster stocks to buy and forget without worrying about what else may or may not be going on now or in the future.
Vertex Pharmaceuticals
Today’s Change
(-0.66%) $-2.81
Current Price
$424.57
Give credit to the business it’s in. Uncertainty and economic turbulence may curb discretionary spending. When it comes to healthcare, however, most will spend whatever is necessary; a great deal of Vertex’s revenue ultimately comes from insurers anyway.
This biopharma outfit’s specialty is cystic fibrosis, by the way … a market with a handful of treatment options, but not enough great ones. Vertex Pharmaceuticals’ portfolio is making a difference, though, driving revenue growth of 9% last year, with comparable growth expected this year.
