Safe Stocks to Buy in a Volatile Market whom Morningstar gave favorable rating on the basis of stability
Due to war in Ukraine and aggressive Federal Reserve interest rate hikes, the year 2022 has become the most stressful year with the unpredictable, volatile market on Wall Street. S&P 500 falls 17% year to date through May 24, it’s understandable for investors to be looking to play it safer with their portfolios by buying long-term investments, high-quality stocks that are safe, reliable, and stable for investment.
According to Morningstar analyst rating based on a five-point uncertainty scale from “low” to “extreme. We have sorted list of eight (8) stocks with low risk and high certainty in the market. Here are the list so that investors can buy today to sleep easy at night. [ Safe Stocks to Buy ]
Adobe Inc. ( Code- ADBE )
Adobe is a software company which provide all creative software for the contain creators in form of graphics software, video software, marketing automation and e-commerce application. The crisis in Ukraine has weighed on Adobe’s 2022 outlook.
According to analyst Dan Romanoff, although the company’s first-quarter revenue and net new digital recurring revenue metrics were strong. The overall sell-off in IT growth stocks this year has dragged down Adobe shares. According to Romanoff, Adobe’s stock was overvalued for much of 2021, but it’s now attractively valued after a 40% drop in the last six months. The stock of ADBE, which ended at $398.41 on May 24, has a “buy” rating from Morningstar and a fair value estimate of $615. [ Safe Stocks to Buy ]
Comcast Corp. ( Code- CMCSA)
Comcast is a multibillion-dollar media company that owns television and movie studios, as well as theme parks. Investors can anticipate Comcast’s cable business to continue to shrink.
According to analyst Michael Hodel, but the company’s stock remains “seriously cheap.” Comcast’s 262,000 net broadband user additions in the first quarter are indication that the company’s customer base is continuously increasing, according to Hodel. He also claims that Comcast has a good balance sheet and generates impressive cash flow. The stock of CMCSA, which ended at $43.07 on May 24, has a “buy” rating from Morningstar and a fair value estimate of $60. [ Safe Stocks to Buy ]
Salesforce Inc. ( Code- CRM)
Salesforce is a top cloud computing services provider and the market leader in customer relationship management software.( Also read- Top 4 market crash opportunity with pros and cons ). Salesforce management stated on its most recent earnings call that the messaging service Slack, which it purchased for $27 billion, is beating expectations. Management also stated that it will not make any more huge acquisitions and will instead focus on profitable growth, which Romanoff believes is positive thing for investors. Salesforce’s sales cloud revenue growth has been particularly durable, he says, and he believes the company can continue to raise its margins. CRM stock, which closed at $156.93 on May 24, has a “buy” rating from Morningstar and a fair value estimate of $320. [ Safe Stocks to Buy ]
Citigroup Inc. ( Code- C)
Citigroup is one of the largest banks in the United States, and it is one of the most recent equities added to Warren Buffett’s Berkshire Hathaway Inc. (BRK.A, BRK.B) portfolio. Although Citigroup remains a complicated investment as it navigates a big strategic transformation, analyst Eric Compton believes Buffett is on the right road. Citigroup is selling a number of assets, notably those in Asia and Mexico, in order to restructure its operations. According to Compton, the reorganization will make Citigroup more focused and easier to understand for investors. C stock, which ended at $52.68 on May 24, has a “buy” rating from Morningstar and a fair value estimate of $78. [ Safe Stocks to Buy ]
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BlackRock Inc. ( Code- BLK)
With $10 trillion in assets under management as of January 2022, BlackRock is the world’s largest asset manager. According to analyst Greggory Warren, financial market volatility in 2022 has had a negative impact on BlackRock’s AUM, but the business is better positioned than competitors to navigate the volatility. Warren believes BlackRock is trading at a severe discount to its historical valuation after a 35% year-to-date sell-off, providing investors with an appealing entry point into his top U.S.-based traditional asset manager stock recommendation. BLK stock, which closed at $618.35 on May 24, has a “buy” rating from Morningstar and a fair value estimate of $880. [ Safe Stocks to Buy ]
ServiceNow Inc. ( Code- NOW)
Software-as-a-service (SaaS) services from ServiceNow are used to manage and automate business processes and workflows. ServiceNow’s price has become more appealing as a result of a sharp sell-off in software stocks, according to Romanoff. According to him, ServiceNow has the potential to extend its company by selling new human resources and customer support products to its existing information technology customers. The world’s transition to a hybrid work environment has shown the need for corporate infrastructure investment in recent years, and Romanoff believes ServiceNow is well positioned to profit from these investments. NOW stock, which closed at $437.52 on May 24, has a “buy” rating from Morningstar and a $700 fair value estimate. [ Safe Stocks to Buy ]
Global Payments Inc. ( Code- GPN)
Merchants and financial organizations can use Global Payments’ payment technology and software. Global Payments shares are cheap, according to analyst Brett Horn, who believes the market is suspicious of the company’s long-term development prospects. Despite the fact that payment transactions declined dramatically during the COVID-19 outbreak, Horn claims that Global Payments’ business fared rather well given its focus on small businesses. In the first quarter, revenue increased by 8%, with acquiring-segment revenue increasing by 16%. Adjusted operating margins increased to 41.1 percent from 40.6 percent the previous year. GPN stock, which closed at $122.86 on May 24, has a “buy” rating and a $186 price target from Morningstar. [ Safe Stocks to Buy ]
Zimmer Biomet Holdings Inc. ( Code- ZBH)
Zimmer Biomet is a company that specializes in orthopedic and musculoskeletal implants. The omicron-variant wave of COVID-19 caused noise in Zimmer’s first-quarter results, according to analyst Debbie Wang, but she finds little evidence that underlying demand for the company’s goods has altered significantly. On a constant-currency basis, sales of knee and hip products in the United States increased by 11.7 percent and 4.5 percent, respectively, in the third quarter. Wang predicts that knee sales will climb in the mid-single digits throughout 2022, returning to pre-pandemic levels by the end of the year. ZBH stock, which ended at $119.39 on May 24, has a “buy” rating and a $175 price target from Morningstar. [ Safe Stocks to Buy ]
Here are eight safe stocks to buy in a volatile market:
- Adobe Inc. (ADBE)
- Comcast Corp. (CMCSA)
- Salesforce Inc. (CRM)
- Citigroup Inc. (C)
- BlackRock Inc. (BLK)
- ServiceNow Inc. (NOW)
- Global Payments Inc. (GPN)
- Zimmer Biomet Holdings Inc. (ZBH)
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