5 Best Stocks to Buy Now
It has been a rough journey of several weeks for the investors. Since the S&P 500 lost around 12% in one month, panic gathered from the outburst of the coronavirus disease, and steep fallout in oil prices has caused a falling economy.
When it is about stock markets, there is a good chance of huge income and easy to make money in the bull-market rally. The key here is to find stocks at a fair value and purchase them. That’s the investment strategy opted by geniuses like Peter Lynch and Warren Buffet, and they are quite successful.
Hence the good news is that bear markets have opened opportunities for investing in stocks for the long-term. It is the best time to make a selection of the greatest companies and make money regardless of the falling economy. Here are the 5 best stocks that you need to consider buying them in this bear market.
It is indeed interesting to find out that the gold mining stocks received quite a hit as the market went down. This is because of the combination of margin calls and demand concerns of some countries like China. However, it is seen that raw gold has been doing fine.
It gives the hint that a company like SSR Mining should be listed for success. Quite different from other mining companies that piled debt for years, SSR Mining has been able to run efficiently. The company bears a $282.3 million net cash position. They are planning to pay around $115 million in debt out of $287.8 million in a few months.
That gives the company more financial elasticity than the others. Furthermore, they have made drastic improvements in Marigold mine (Nevada) and record production of gold in Seabee mine (Canada). Their added cash flow will be higher in the near future. SSR Mining stocks will move forward.
One of the proven ways to protect your stocks from the deep losses when the market crashes and build yourself up for earning a good amount of money during the next bull market is to buy utility stocks. These stocks are easy to make money during a bear market. One such name is NextEra Energy.
One of the major manufacturers of green energy is NextEra Energy. It is the leading company in the US to generate electricity by utilizing wind or solar power. Their energy projects may be a bit expensive, but their costs are expected to be drastically lower than their competitors.
NextEra Energy benefits from its consumers because their electricity-generating are being regulated in a traditional way. In short, their stocks aren’t exposed to price fluctuations and you can assume what to get in terms of the flow of cash and sales.
You need to keep in mind that the recent situation to the stock market is temporary and has nothing to relate to the financial system. That’s the reason why purchasing a semiconductor giant like Broadcom makes a lot of sense. Broadcom is about to become one of the large beneficiaries in the ongoing 5G rollout.
Their wireless chips are mainly used in next-gen smartphones. Their access and connectivity chips are continuously used in the data centers that give power to the cloud. Because smartphones have become one of the important needs of humans these days, a recession or a bear market can’t stop the people from upgrading their smartphones.
Moreover, reports indicate that Broadcom is a beast in the capital return sector. From paying out a quarterly of $0.07 dividend in the late 2010s, it has grown to a payout of about $3.25 every quarter. Such a return is really appreciating.
It is projected to have $13 in dividends during the full year of 2020. However, income investors are eyeing at a growth rate of about 5.3% for this company who is capable of growing their sales by the highest single digits.
If there is one fact that can’t be taken to the bank is that nobody can find out the ailments they develop or when they get sick. This is why pharmacy chains like CVS Health are such a potential business. Hence, you can stake in this company no matter how good or poor the economy is functioning.
CVS Health generates a healthy portion of their margins with the aid of their back-end pharmaceuticals. They have been pushing for individualistic experience for driving foot traffic. The company has massive plans for opening about 1500 health hubs or health clinics in the US by the fall of 2021.
It is expected that CVS Health will benefit from its merger with the insurer, Aetna. Apart from the scare of coronavirus reminding the American people about the importance of getting insured, the amalgamation of these two big companies should lead to cost savings during 2020 and beyond that.
On top of that, Aetna’s individual growth rate is a bit higher than that of CVS’s pharmaceutical growth. With nine times more earnings, it is easy to make money in this bear market.
Lastly, if you want to invest and earn a huge income in this falling economy, you need to consider American Express in your portfolio during this period. It is considered as one of the 5 best stocks to buy mentioned in this article. You are sure to earn great profits.
While the theory of investing financials in a conventional recurring industry during recession or bear market is not so influencing, there are two reasons that you need to consider in this aspect. First, American Express has an affluent clientele. These people won’t compromise their spending habits.
They won’t be shattered by the short-hiccups that average people are experiencing these days. With AmEx, it is forecasted to earn ten times more in the next year. Second, this isn’t a type of financial shock that people are used to when stock markets turn south.
While there may be a number of factors that are responsible for pushing the stock market down, the spread of the deadly coronavirus seems to be the main reason. There has been a sharp decline in the stock market. So, that was the top 5 best stocks for you to buy and make some money.