Some believe that despite Jerome Powell’s evidently optimistic remarks on the Fed’s plans to continue hikes — which decreased from 75 basis points (0.75%) to 50 basis points (0.50%) — we should still be bracing for a recession in 2023. I try to be a market optimist, but I can’t rule out the possibility. If push comes to shove, we must be courageous, patient, and open-minded as the market shapeshifts from bear to bull. Like a library, if we don’t impose and just search quietly, the safest stocks to buy will be there at the right time. Some contend that we cannot transition without a recession. Eh, I’m not sure.
There will be suitable investments next year, but it’s best to buy now so that they’d already be in the portfolio if a recession arrives. For instance, the S&P 500’s Value Index has generated an 8.1% annualized return over the last five years, against 10.5% for the S&P 500’s Growth Index. Value significantly outpaced growth in that period, with a 7.6% loss compared to growth’s plummet of 30.7%. The healthcare industry is a go-to, but I have a separate piece on biotech and will relay further analysis. Energy, industrials, and financials are among the sectors more commonly categorized as being of the value variety. I’ve landed on three unique picks that I hope can earn your consideration.
I picked these by accounting for upside potential, strong balance sheets, and earnings beats. The top analysts agree that now is an opportune time to buy these storm-shelter tickers:
Rexford Industrial Realty Inc (REXR)
Rexford Industrial Realty, Inc. (REXR) is a self-managed and self-administered REIT (real estate investment trust) that owns, operates, and acquires industrial buildings. REXR‘s primary concentration is running industrial assets in Southern California infill locations. REXR owns 232 buildings totaling about 27.9 million rentable square feet and oversees another 20 properties totaling approximately 1 million rentable square feet. The “SoCal” (right?) infill market, at 1.8 billion square feet, is one of the nation’s largest and most sought-after industrial marketplaces, and REXR‘s declared mission is to meet that demand. REXR was founded on January 18rd, 2013, and is headquartered in Los Angeles, CA.
Through its many properties, REXR continues to explore opportunities to boost cash flow and value by increasing its product efficiency and commercial viability. REXR has a market cap of $10.6 billion, a safe 0.83 beta score, and $472 million in revenue — from which REXR boasts profits of $127.7 million — as of the last twelve months. REXR has impressive year-over-year growth: Revenue growth of 49.71%, Net Income growth of 119.05%, and EPS growth of 109.09%, to name a few. What fascinates me most about REXR is its miraculous dividend payout ratio of 127%. REXR’s dividend yield is 2.27%, with a quarterly payout of 31 cents per share ($1.24/yr). Analysts that offer yearly price estimates give REXR a median price target of 66.00, with a high of 74.00 and a low of 62.00, making for a potential 33.4% increase over its recent price. The analysts also tell us to Buy and Hold.
Halliburton Co (HAL)
Halliburton Co. (HAL) is a long-time provider of products and services to the energy industry. HAL deals in oil and natural gas exploration, development, and production. The segments that makeup HAL’s operation are “Drilling and Evaluation” and “Completion and Production.” Cementing, stimulation, pressurization, intervention, specialized chemicals, artificial lift, and completion services are provided by HAL‘s Completion and Production section. HAL‘s Drilling and Evaluation division offers wellbore placement, field and reservoir models, and other products that help clients measure and improve their well-building operations. Erle P. Halliburton founded HAL in 1919, with its headquarters in Houston, TX.
For the fourth quarter of 2022, HAL shows forecasted revenue of $5.6 billion and an EPS of 67 cents per share. HAL has consistency regarding earnings season surprises; it has bested the predictions of Wall Street’s brightest economists for four consecutive quarters, to be precise. HAL, per the last twelve months, has a P/E ratio of 18.94x, diluted EPS of $1.93, a return on equity margin of 27%, and a net profit margin of 19.50%, with a market cap of $33.31 billion. Year-over-year growth for HAL looks good in every area that it should. HAL has a dividend yield of 1.31%, with a quarterly payout of 12 cents ($0.48/yr) per share. Top analysts who give pricing predictions have issued HAL a consensus median price target of 46.50, with a high of 54.00 and a low of 35.00. This indicates a potential price increase of 47.10%, and the experts have also weighed in confidently: Buy and Hold stock in HAL.
Amazon.com, Inc (AMZN)
Amazon.com, Inc. (AMZN) sells consumer items and memberships in North America and worldwide. It offers many forms of different content, both in-person and online. In addition, AMZN makes and sells electronic products, including the Kindle, Fire TVs, Rings, and other media content. Furthermore, AMZN provides tools that enable authors, singers, videographers, streamers, and others to create and market their work. AMZN also provides Prime, a membership service that includes free delivery and access to movie and television series streaming. AMZN offers services to customers, retailers, developers, and content providers. AMZN was founded in 1994 and is based in Seattle, WA.
It shouldn’t be surprising that AMZN finds its way onto my watchlists here and there. Personally, I am surprised, but that’s because AMZN’s stock price is down by close to 47% year-to-date. AMZN still shows fourth-quarter sales of $146 billion at 21 cents EPS. We might be nearing a recession; I’m sure the retail giant is aware of that. What matters now is the stability AMZN can bring to one’s portfolio. Call me crazy, but I tend to trust a business with a $908.87 billion market valuation and $40 billion in free cash flow. For Q3 2022, AMZN put its foot down in defiance with a 35.53% win vs. analysts’ EPS projections. Per the last twelve months, AMZN has 98.32% net income growth, 98.57% EPS growth, and net profit margin growth of 81.22%. The analysts who offer annual price estimates have given AMZN a consensus average price target of 136.00, with a high of 170.00 and a low of 80.00. As AMZN’s price hovers close to the bottom of its range, we can guess what the analysts would say. With the potential for a massive 92% price increase, AMZN is a strong “buy the dip” candidate. Correction: Buy Now and Hold.
Read Next – Have you seen it yet? Appalling…
This is causing a lot of controversy…
It’s a new documentary called The Two Men Destroying America.
And a lot of powerful people would rather this exposé never saw the light of day. Chances are, they’ll attempt to have it scrubbed from existence.
That’s because it tells the true (and terrifying) story of how two men from New York have engineered a reset of not just your personal wealth, but the entire US economic system.
