Forward-Looking Investments: Stocks You Can Invest in Amidst the Global Pandemic
As COVID-19 continues to wreak havoc across the world’s economies, many are asking, “Can I buy stock amidst this crisis?”
“Can I buy stock amidst this crisis?”
You might be surprised to find, the answer is yes!
There are a good number of stocks that make for great investments, even during this kind of economic climate.
There is a great amount of fear and scepticism around markets at the moment, for obvious reasons. This can pose quite a challenge for finding the right investment opportunities. However, with fear and scepticism comes volatility.
Don’t forget that volatility is great for trading.
To help you navigate the markets, we have put together a list of the top stock investment ideas from some of the top Wall Street analysts.
These ideas will provide forward-looking investors with opportunities in the longer term. So if you’re planning to invest, here’s what you should know.
Many companies have now suspended their dividends.
These suspensions have occurred in order to preserve cash reserves for when the pandemic passes. For this reason, investors have begun to find it a lot more challenging to pick safe dividend stocks that can continue to provide them with a steady income.
Goldman Sachs scrutinized the Russell 1000 universe in search of companies that had an excellent record of dividends. These were companies that had managed to make dividend payouts in 90 consecutive quarters.
Here are the four most reliable names that made it onto the list:
- IBM (NYSE:IBM)
- Home Depot (NYSE:HD)
- Cisco Systems (NASDAQ:CSCO)
- 3M (NYSE:MMM)
Besides the fact that these four have a strong dividend payout track record, they also have healthy cash reserves, Goldman reported.
Cole Hunter, Goldman’s United States Portfolio Strategist, believes these companies have demonstrated a commitment over the years to paying dividends and despite significant challenges have not underperformed since the market peak.
The Large Caps
Bank of America has also offered its sentiments on the best ideas for promising stocks in the current climate. The bank was mainly on the lookout for stocks that can survive the challenges brought on by the growing pandemic.
The technological powerhouse, Apple (NASDAQ:AAPL) tops the list. Although currently trading at $240.92, Bank of America rates the stock a buy and has set a target price of $300 per share.
Honeywell (NYSE:HON) also made Bank of America’s list.
The conglomerate has a strong balance sheet, low operational risk, and healthy cash-flow. Though currently trading at $129.71, Bank of America has provided a target of $155.
Consumer staples also provide a great place to look – especially in perilous times. Procter & Gamble (NYSE:PG) is one of the best candidates in this group.
They provide staple foods, which remain more than relevant during crisis periods.
A report obtained from Credit Suisse indicates that technology stocks are also likely to provide excellent investment opportunities in the months to come.
Stocks in the technology sector have crashed since the start of the pandemic. However, once there are signs the pandemic is nearing an end, these sectors will likely bounce back strongly.
Some technology companies worth looking at include:
- Amazon (NASDAQ:AMZN)
- Alphabet (NASDAQ:GOOGL)
According to Credit Suisse, the value of these companies’ bonds will reach an all-time high after the main wave of the pandemic passes.