Best Stoks Available for the Future Bull Market
The coronavirus crisis has effectively reset markets. Both the economy and the stock market will return to their strength in previous years, but still nothing will be the same. This means that the best stocks to buy right now might look very different from the choices a few months ago.
Considered that most of America is under quarantine, it is too early to say that we have overcome problems and we have not yet seen how the earnings of the first quarter and the guidance of the second quarter will be. Now it's time to start planning for the next bull market.
Many companies will be discouraged by these events. It may take years for airlines to catch up with the passenger numbers before the crisis and bankruptcy may occur in the meantime. Similarly, retailers and restaurants can deal with problems caused by the outbreak for months or years.
However, some of Wall Street's best stocks can get through this work with relatively minor scratches. Many have large cash storages to help get through short-term profit declines. Others can benefit from stagnation by collecting market share when their competitors develop. Many of these beneficiaries are technology shares, but not all.
Today, when investors begin to recover, we will look at the top 20 stocks to buy. These companies will consist of a mix of well-placed businesses, strong balance sheets or leading positions in their industry.
1. Amazon.com
Market value: $ 994.4 billion
Dividend yield: None
Amazon.com (AMZN, $ 1,997.59) entered the coronavirus crisis in a well-positioned state.
While many of its competitors had to close their doors, Amazon's traditional retail business continued almost seamlessly. In fact, at a time when most retailers were alarmed at the loss of revenue, Amazon's biggest problem was not being able to find manpower to deal with the increase of new orders.
But that's not all. While most of the world's population is dealing with restrictions, Amazon's Prime video streaming service entertains people. The Amazon Web Services (AWS) unit has helped the company handle their workforce by working from home.
Amazon has long been on the "best stock to buy" charts. It continues to look attractive to this day. The current recession has hit any company, especially retailers. Even after the restrictions have ended and the economy has started to improve, you can expect Amazon sales to drop slightly even if Americans flock to shopping malls with the happiness of leaving home. But for more than a decade, people often get locked out when they access the comfort of Amazon.com.
2. Walmart
Market value: $ 357.1 billion
Dividend yield: 1.7%
While most retailers had to close their doors, Walmart (WMT, $ 126.07) reported that sales for March increased by 20% annually.
Americans in quarantine are eating more at home, which helps Walmart's grocery business. But electronics, toys, cleaning supplies and almost everything Walmart sells are also in high demand these days. Fortunately, Walmart spent the years before the crisis to create the e-commerce arm.
Walmart is an investment that will benefit years even after the restrictions are lifted.
There is a "retail stink" that we have heard for years. America's per square foot store size is much more than any other country in the world - this is roughly five times the UK and six times in France. Some of these retailers will not be able to escape from stagnation. Others will need to at least strengthen and reduce the number of stores. Some of his losses will be Walmart's gain.
3. Clorox
Piyasa değeri: 22,7 milyar dolar
Temettü getirisi:% 2.3
Clorox (CLX, 181.38 $), erken bir virüs salgından yararlanmak için en iyi stoklardan biri olarak tanımlandı. Clorox çamaşır suyu, dezenfektan mendil ve diğer çeşitli temizlik ürünlerini satmaktadır. Ve sık temizlik, koronavirüse karşı ilk savunmamız olduğundan, şirket üç aylık sonuçlarını açıkladığında muhtemelen rekor satış kaydettiği görülecektir.
Tabii ki, bazı stoklama durumu olmasına rağmen, Clorox, hayat normale döndüğünde tuvalet kağıdı üreticilerinden çok daha iyi bir ücret talep edecektir. Bu kriz sırasında artık tuvalet kağıdı kullanmıyoruz. Hala tüm mantığa meydan okuyan nedenlerden dolayı, onu bir yere atıyoruz. Ancak, bu kriz sırasında gittikçe daha fazla kullanıyoruz. Çamaşır suyu, mendil ve diğer temizlik ürünleri gittikçe artıyor.
CLX, en azından önümüzdeki birkaç çeyrekte ortalamanın üzerinde satış ve kazanç görmesi muhtemel birinci sınıf bir hisse senedi.
4. Walt Disney
Market value: $ 179.8 billion
Dividend yield: 1.8%
The coronavirus outbreak attacked multiple fronts of Walt Disney (DIS, $ 99.58). The first and most obvious are the travel bans and home stay instructions that cover Disney's theme parks and journeys.
Unfortunately, it's not just that. Disney's media empire is also under attack. Live sports were closed indefinitely, and Disney's two blockbuster films, Mulan and Black Widow, are already delayed.
However, it would be correct to say that these mishaps are temporary. It may be a slow summer for Disney, given that the parks will remain closed or take a few months for visitors to overcome their coronavirus fears. Also, movie ticket sales may be slow to recover, depending on how long the restrictions last and what kind of restrictions apply.
However, Disney has some of the entertainment brands in Star Wars and Marvel sales as well as Disney characters.
Also, the biggest growth story for the company is Disney +, the online video streaming service that competes directly with Netflix.
5. Microsoft
Market value: $ 1.3 trillion
Dividend yield: 1.2%
It says that in one of the most volatile bear markets in history, Microsoft's (MSFT, $ 165.27) share price has barely changed with a 12% drop compared to 21% for the market.
If you look at a potentially stagnation, you might think that a business software supplier would be a risky bet.
Traditionally, software sales have been cyclical. And in another period, Microsoft may really be at risk. But in the last decade, Microsoft has switched to a subscription-based model for many software offers, including, amongst others, the profitable Office suite (soon coming to Microsoft 365) that includes Word, Excel, and PowerPoint. However, if we see mass layoffs in white collar jobs, the total number of subscribers may decrease slightly. However, given that this crisis has done more damage to service and hospitality workers than office workers, any drop in MSFT should be muted.
6. Berkshire Hathaway
Market value: $ 450.3 billion
Dividend yield: None
Berkshire Hathaway (BRK.B, $ 185.24) owns more than a third of her portfolio in banking shares, which led to her badly hurt. Buffett made a return to two airline shares, as the industry was literally tipping this year.
Initial estimates show that the Berkshire portfolio will drop by about 26% in the first quarter, but we will not know the final figures until the quarterly results are released.
With all this, Buffett is actually developing in times of crisis. In the crisis of 2008, Buffett effectively rescued Goldman Sachs (GS) and General Electric (GE). He managed to make very profitable deals because he had the money and financial power to do this when the crisis started.
We are in the midst of another crisis right now, and Buffett has more money to distribute than ever ($ 128 billion): that's why we see Berkshire Hathaway as one of the best stocks for potential purchase in the bear market.
7. Enterprise Products Partners LP
Market value: $ 33.4 billion
Distribution efficiency: 12.0%
It is famous for its energy being a variable sector. However, 2020 is variable even by oil and gas standards. The sector was in excess supply, partly due to the reduced demand from China. The coronavirus outbreak in Wuhan last year broke down China's factories, and restrictions worsened demand.
As the coronavirus cases spread across Europe, demand fell further. And then Saudi Arabia did the unthinkable, even if its demands fell off a cliff, it opened its taps and filled the market with new supply. The result was the biggest collapse in oil prices in history.
Cheap shares can remain cheap for a long time in the absence of a catalyst to send higher. Although Saudi Arabia, Russia, and the United States have made an agreement to cut production, it will take months to work on surplus supply, especially given that the economy is now stagnant.
Distribution returns are calculated by annualizing the latest distribution and dividing it by share price. Distributions are similar to dividends, but are considered to be the return on tax-deferred capital and require different documents for tax documents.
8. McDonald's
Market value: $ 132.0 billion
Dividend yield: 2.8%
Like most restaurants, McDonald's (MCD, $ 177.04) had to adapt to the coronavirus process by closing most of its shops. However, the company has managed to keep the car hatch open in most places and deliver delivery through apps like DoorDash and Uber Eats. We cannot know how sales progressed until the company reported its quarterly earnings in April, but the first indicators show that they should be relatively strong.
However, regardless of McDonald's performance during the pandemic, the MCD stock should receive support from two major winds that have occurred in trade when things have improved:
Firstly, the fast food market gives good results during a recession. We usually say from the outside instead of cooking at home, and McDonald's fatty fries are also a good food to be deceived.
Second, the booming economy of recent years has made labor a scarce commodity, and restaurants have long complained of rising labor costs. Along with many American unemployed, the labor market will remain sluggish for a while.
9. Starbucks
Market value: $ 79.6 billion
Dividend yield: 2.4%
The coffee chain Starbucks (SBUX, $ 67.79) worsens virus restrictions than most fast food partners. All stores and cafes decided to close until the next announcement. However, many vehicles and markets still work and continue delivery.
It is difficult to imagine a scenario where Starbucks' quarterly earnings reports are not terrible. While on-the-go orders help prevent bleeding, although Starbucks promises to continue paying their employees, a large percentage of their sales appear to evaporate during restrictions.
Consumers have reduced large expenses during the recession, but they tend to fall into pointless little pleasures like a premium cup of coffee. After all, you need some joy in your life. And labor costs should be moderate for a while, given the number of service workers who have no job to return when this crisis is over.
10. Apple
Market value: $ 1.1 trillion
Dividend yield: 1.2%
The world's leading consumer electronics company Apple (AAPL, $ 262.47) was one of the top-class shares of the market prior to the coronavirus outbreak.
Like most retail-oriented companies, Apple will likely indicate lower sales and profit rates in its earnings report, which will be released in the upcoming period. It is not a priority for anyone to take a high model of iPhone after restrictions and when you leave your home, as most retail outlets selling Apple products decided to close until the next announcement. And finally, even if demand returns to pre-crisis levels, supply chain issues will likely bother Apple for months.
However, it should be noted that these mishaps are temporary. A phone or iPad bought after a month or two does not cause a loss of sales. It is just a delayed sale. Some sales will be permanently lost as users extend the life of their existing equipment to avoid a new purchase expense. However, the phones are designed to be replaced every few years, and this has not changed.
What really helps Apple right now is that it extends its service businesses (App Store, Apple TV + and more) for years of earnings. Services accounted for about 19% of revenues in the past quarter, and these revenues tend to be regular and recurring.