Stay Strong Longer in These 7 Stocks

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After a strong start to the year, the benchmark equity indices present clear challenges in 2023 that justify investors staying on course to buy trustworthy stocks. Basically, all eyes are on the Federal Reserve. For example, the consumer price index (CPI) popup slightly higher than expectedthe central bank faces stubborn inflation.

Unfortunately for the Fed, that’s not the only issue that could hurt sentiment. With China reopening, the overall impact should be positive in the long run. However, the rapid increase in commercial activity means that more resource consumptionAnd that means more dollars chasing less goods. Investors should therefore consider buying trustworthy stocks as a protection mechanism. Plus, I’m not sure how to judge geopolitical tensions and flashpoints. Investors should target and buy these stocks because there are so many issues to consider.

K.

Kellogg $68.38
price

Costco $507.48
IBM

IBM. $135.02
DE

Dia $433.31
BG

Bunge $97.57
AEPs

American Electric Power $92.41
XOM

ExxonMobil $111.28

Stocks to buy: Kellogg’s (K)

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While no one can mistake it for the king of breakfast foods, Kellogg’s (New York Stock Exchange:K.) for an exciting investment, it easily ranks among the trustworthy stocks to buy.At the time of writing, the Forward yield is 3.45%, above the consumer sector average yield of 1.89%. In addition, it has continued to increase its dividend for 18 consecutive years, a status that cannot be easily compromised.

Financially, the company is doing pretty well on its own.On the balance sheet, its stats rank neither spectacularly nor terribly, just somewhere in between. 3-year revenue growth rate Ping is 4%, which is close to the industry median. However, its net profit margin was 6.27%, ahead of its peers at 68%.

Basically, the company’s products never go out of fashion. Similarly, we are making inroads into innovative areas of the food industry, especially plant-based meats.With Kellogg’s sheer scale, it’s the only credible player in fake meat. consensus holdHowever, the average price target is $71.80, suggesting a 5% upside potential.

Stock to buy: Costco (COST)

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generally, Costco (Nasdaq:price) is an ideal example of a stock to buy during an inflation cycle. Of course, that’s because Costco’s business model incentivizes and encourages bulk buying. But under deflation, does the same concept apply in reverse?

Whether in relative or absolute deflation, Costco remains relevant. Fundamentally, deflation represents a decrease in demand. Therefore, retailers cut prices to attract declining customer numbers. However, this drop in demand also means a significant reduction in the broader workforce.

However, a reality check that makes COST one of the stocks to buy is:Costco membership in general make more money Put another way than other big box shoppers, owning COST buys a very resilient consumer base.And Wall Street analysts seem to feel the same way, making COST Consensus moderate buyTheir average price target is $558.17, suggesting a 10% upside potential.

Stock to buy: IBM (IBM)

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If you’re researching stocks to buy the equivalent of an economic slowdown, your portfolio needn’t look like a doomsday prepper’s wish list. IBM (New York Stock Exchange:IBM). Big Blue isn’t a particularly exciting name in the innovation space, but it has begun to focus on related industries such as its hybrid cloud. As a result, they are highly relevant and reliable.

For example, while other tech companies struggled to show signs of positive traction, IBM had its head above the water. IBM’s stock rose nearly 9% last year, a far cry from many other tech companies. It also has some very attractive features. Forward Yield 4.89%This metric is well above the tech sector average yield of 1.37%. We have also increased our annual dividend for 29 consecutive years.

Financially, the market values ​​IBM at a forward multiple of 14.13. Big Blue as a discount on earnings Ranked higher than 80% of software industry playersAnd IBM is trading at 14.52x free cash flow (FCFMore). As a discount to FCF, the company outperforms his competitor at 70.34%. IBM is pending evaluation, Wall Street analysts believe the stock will reach $ 143.56. This implies a potential upside of 6% or more.

Dia (Germany)

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If the Fed aggressively imposes hawkish monetary policy to truly keep inflation down, investors should target deer (New York Stock Exchange:DE). Deere, a specialist in agricultural machinery, is a highly relevant company. No matter how advanced society is, we must eat. Deer’s partnerships with the broader food value chain should therefore be one of the best stocks to buy.

But Deere also represents old dogs learning new tricks. fully autonomous tractorAside from the amazing advances in artificial intelligence and machine learning needed to make this amazing piece of equipment work, Deere also facilitates another solution. Not many people want to be farmers. Deere therefore adopted disruptive technology and increased it socially. It’s a genius move if you ask me.

To be fair, DE doesn’t rank highly in the yield department Only 1.11%This is significantly below the industry sector average yield of 2.36%.However, Wall Street analysts see DE as Consensus moderate buyAlso, their average price target is $481.41, suggesting an upside potential of over 11%.

Bunge (BG)

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in agribusiness and food companies, Bunge (New York Stock Exchange:BG) gained a good reputation in the international soybean export business. Additionally, according to its public profile, the company specializes in food processing, grain trading, and fertilizers. Food Value With its direct involvement in his chain, Bunge has natural relevance as one of the stocks to buy.

But with the Federal Reserve trying to keep inflation under control, subsequent deflationary pressures won’t hurt Bunge outrageously. Let’s face it – at a basic level, the company benefits from inelastic demand. Essentially, humans need a minimum number of calories to survive. So BG makes a lot of sense as he’s one of the stocks to buy. Objectively, the market has a forward multiple of 8.21 for BG. As a discount on earnings, Bunge Ranked above 85.84% of competitorsAlso, BG is trading at 0.22x (trailing) selling. As a revenue discount, this food company outperforms his competitors by 89%.

Finally, Wall Street analysts called BG consensus strong buyAdditionally, their average price target is $123, suggesting a 26% upside potential.

American Electric Power (AEP)

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If you expect the Federal Reserve to throw the kitchen sink at inflation, american electric power (Nasdaq:AEPs) are prime candidates for stocks to buy. Of course, as an electric utility company, AEP is very relevant. Basically, if a person flips a switch and no light appears, bad things happen. Additionally, utilities benefit from natural monopolies. Essentially, very high barriers to entry prevent competition.

You can see how the AEP relevance played out on the chart. While many other publicly traded companies have suffered sharp valuation declines in his 2022, AEP has held up. The following year, the stock was able to gain around 8% equity value.

Similarly, the company Forward Yield 3.59%The payout percentage is not low at 58.84%, but it’s pretty manageable. Moreover, with 13 consecutive years of dividend increases, management is unwilling to give up on this track record.Finally, the covering analyst puts the AEP in Consensus moderate buyAdditionally, their average price target is $103.44, suggesting a 12% upside potential.

ExxonMobil (XOM)

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Back in 2022, geopolitical flashpoints contributed to the flowering of the hydrocarbon energy sector, but for truly cynical reasons. We don’t like what’s going on in the world these days, but as investors we have to deal with reality.and one reality exxon mobil (New York Stock Exchange:XOM) are ranked among the stocks to be purchased. XOM may be a no-brainer, as economic and geopolitical forces are likely to boost demand (and reduce supply).

Even if you support initiatives that are greener than fossil fuels, financially it will be hard to ignore XOM.For one, according to Gurufocus.com discounted cash flow analysis, XOM is ranked as an undervalued (if not significantly undervalued) investment. The investment resource calculates a fair value of $165.55. XOM is currently trading at $111.28.

Additionally, the company enjoys strong operational statistics. Three-year revenue growth is 16.6% for him, outpacing his 81.54% for his peers. Likewise, the net profit margin is 13.98%, higher than the industry’s 66%.Looking to Wall Street, analysts see XOM as Consensus moderate buyAdditionally, their average price target is $125.47, suggesting a near 13% upside potential.

Josh Enomoto on publication date I did not have any positions (directly or indirectly) in any of the securities mentioned in this article. The opinions expressed in this article are those of the subject author of InvestorPlace.com. Publication guidelines.

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