It is difficult to choose stocks that can be winners in volatile market conditions. The stock market experienced a major recession last week followed by a rebound. Perhaps the worst is over, but an even steeper correction may be approaching.
I could name a fairly long list of stocks that should be long-term winners. But identifying those that can defy gravity during a short-term stretch of rock isn’t that easy, either. However, there are some who could. Here are three stocks that I truly believe will make you richer in March (and beyond).
In my opinion, one of the best ways to find stocks that should weather a storm fairly well is to see which ones are already doing so. As an example, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) in fact, they made a small profit last week while most tech stocks were sinking.
How is Alphabet doing so well? For one thing, it’s rock solid from a financial standpoint. It reported nearly $ 57 billion in revenue and more than $ 15 billion in earnings in the fourth quarter. The company’s cash reserve is close to $ 137 billion. Few companies even come close to Alphabet’s financial strength.
Investors also acknowledge that Alphabet’s fortunes are likely to improve further in the near term. With a light at the end of the tunnel now visible with the pandemic, the economy should recover. That’s good news for Alphabet’s search platforms, which should benefit from higher ad spend. It should also help maintain the company’s already strong Google Cloud business momentum.
Also, Google has just launched YouTube Shorts in the US market. This new functionality is in direct competition with the popular TikTok video sharing app. With these short-term drivers combined with long-term opportunities, including Waymo’s autonomous vehicle technology, I think Alphabet is likely to be a winner this month and for the next decade.
2. Business Product Partners
Business Product Partners (NYSE: EPD) it is another action that went against the grain last week with its shares rising nearly 9%. The key catalyst for the midstream power company was the announcement that it is purchasing power from a solar project developed by EDF Renewables.
2020 was a difficult year for the energy sector. Enterprise Products Partners’ fourth quarter results reflected this, and the company’s earnings and cash flow declined significantly from the prior year period.
Still, the company looks like a great comeback play this year. Vaccine launches combined with government stimulus should boost demand for natural gas and oil. Enterprise is also moving forward with three large short-term projects that should generate additional cash flow, including an expansion of its ethane pipeline on the US Gulf Coast.
There is another important way that Enterprise Products Partners will also enrich investors: its dividends. The company’s distribution performance currently stands at just under 8%. This stock will not have to offer much appreciation to generate total returns that easily beat the general market.
Pfizer (New York Stock Exchange: PFE) stands out as a leader in helping end the pandemic. The BNT162b2 vaccine that you trade with a partner BioNTech it has already been given to millions of people. And like Alphabet and Enterprise Products Partners, Pfizer shares rose last week even as the stock market was reeling.
Big Pharma reported good news on Wednesday that helped boost its shares. Pfizer announced that the Food and Drug Administration had approved Lorbrena as a first-line treatment for anaplastic kinase-positive non-small cell lung cancer (NSCLC). The drug is already on the market as a second-line treatment for NSCLC.
This latest approval is yet another component of Pfizer’s rejuvenation. After several years of poor performance, the company now expects to deliver solid growth. One of the main reasons is that Pfizer is no longer burdened by older drugs that have lost patent exclusivity after the merger of its Upjohn unit with Mylan in November that formed a new company. Viatris.
But Pfizer’s big short-term story is definitely BNT162b2. The company stated in February that it expects sales of the vaccine to exceed $ 18 billion this year. That number is likely to grow as Pfizer and BioNTech strike additional supply deals, making both companies, as well as Pfizer shareholders, richer.
This article represents the opinion of the author, who may disagree with the “official” recommendation position for a premium Motley Fool consulting service. We are variegated! Questioning an investment thesis, even one of our own, helps all of us think critically about investing and make decisions that help us be smarter, happier, and wealthier.