Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

3 S&P 500 Stocks With Enough Growth to Weather Any Downturn

By Kate StalterStock MarketsNov 13, 2023 08:22AM ET
www.investing.com/analysis/3-sp-500-stocks-with-enough-growth-to-weather-any-downturn-200643547
3 S&P 500 Stocks With Enough Growth to Weather Any Downturn
By Kate Stalter   |  Nov 13, 2023 08:22AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
MRK
-0.15%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
MKC
-1.52%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AVGO
+7.59%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
US500
+0.80%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
XLK
+1.81%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
  • Even in choppy market conditions, there are stocks worth watching for investors who want steady profitability, cash flow, and dividends.
  • Despite diverse trajectories, these stocks exhibit resilience in the face of market fluctuations.
  • Large caps with steady profitability and dividend growth can help a portfolio weather a downturn.

If you’re looking for companies with steady profitability, cash flow and dividends, then Broadcom (NASDAQ:AVGO), McCormick & Company (NYSE:MKC) and Merck & Company (NYSE:MRK) are worthy candidates.

All three of these stocks are showing very different chart patterns; Broadcom is at new highs, McCormick is attempting to recover from a 15.52% pullback in October and Merck has been gradually declining since May.

As the market is rallying, despite hints from Federal Reserve chairman Jerome Powell that the central bank may not be done raising interest rates, tech stocks like Broadcom are rallying. The Technology Select Sector SPDR® Fund (NYSE:XLK) has been the biggest S&P gainer in the past five days.

McCormick, whose spices and seasonings you likely have in your kitchen, is squarely ensconced in one of the traditional defensive sectors, consumer staples.

Merck, one of the largest healthcare stocks, also has some degree of defensive protection if the market does roll over into a longer correction.

1. Broadcom Rallies with S&P 500

Broadcom designs chips for end markets including ethernet switches, networking technology, WiFi and wireless. It’s aggregated that collection of business lines through acquisition.

The stock is up 6.48% in the past month, as it’s rallied in tandem with the wider S&P 500, but at a faster rate.

The Broadcom chart shows the stock clearing a buy point above $925.91. The stock was trading 4.71% higher mid-session on November 10, and was among the top gainers within the tech sector.

Broadcom is one of the chipmakers that investors and analysts expect to benefit from the growth of artificial intelligence as language models continue to require ever more computing power.

The Broadcom dividend yield is 1.93%, and the company has a 13-year track record of increasing its shareholder payout. That lands it a place on MarketBeat’s list of dividend achievers.

Broadcom stock is currently in buy range, as the stock is trading only 3% higher than its buy point.

2. McCormick Is a Reliable Consumer Staple

There’s “buy the dip” and “buy the crater,” and McCormick is in the latter category after gapping down 8.46% following its most recent earnings report.

However, shares found a floor above their mid-October lows, and have been trending higher recently. As a consumer staple, the stock will likely have some appeal even in an economic downturn. During downturns and recessions, more people turn to eating at home rather than at restaurants, which bodes well for McCormick.

McCormick’s brands include not only the namesake spices, but also Lawry’s, Old Bay, Stubbs’ barbecue sauce, Thai Kitchen, Zatarain’s and Frank’s hot sauce.

The stock is down 20.71% year-to-date, after a decline that began in the first half of 2022. In other words, McCormick’s downtrend is nothing new.

On the McCormick chart, you’ll see a big decline in October after a disappointing report.

In its most recent quarter, McCormick’s revenue grew by 6%. Earnings declined by 6% to 65 cents a share.

The company said its quarterly revenue included a 1% unfavorable impact attributable to a slower economic recovery in China. McCormick hinted that it expects sluggish sales in that region in the current quarter. It was that forecast that slapped the stock down.

The McCormick dividend yield of 2.41% is an attractive feature if the broader market goes into a correction.

3. Merck Earnings Topped Views

The pharmaceutical giant’s shares have been trading gradually lower since May, with the stock posting a year-to-date decline of 5.75%. You can see that decline on the Merck chart.

The stock is currently holding above its October 19 intraday low of $99.14.

Merck reported third-quarter results that came in ahead of analysts’ views, as you can see using MarketBeat’s Merck earnings data. However, some of the company’s sales amounted to a short-term bump in international volume from the company’s Covid treatments. That’s not likely to be sustainable.

Earnings were up 15% in the quarter and revenue was up 7%.

Merck raised its revenue guidance for the full year.

Immediately after the earnings report, as you can see using Merck analyst forecasts, one analyst boosted the stock’s price target, another upgraded the rating and a third initiated coverage with a “buy” rating.

Analysts’ consensus view on Merck is “moderate buy” with a price target of $125.14, an upside of 23.27%.

Original Post

3 S&P 500 Stocks With Enough Growth to Weather Any Downturn
 

Related Articles

3 S&P 500 Stocks With Enough Growth to Weather Any Downturn

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Shoaib Nawaz
Shoaib Nawaz Jan 04, 2024 11:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hlo
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email