Out there is terrifying. And when I say “there,” I’m referring to the stock market.
The majority of stock indexes have all entered the bear market zone. There are growing worries that a severe recession may be imminent. Unfortunately, inflation is still very high.
The most common emotion among so many investors seems to be fear. It makes sense at the time. You don’t have to be shaking in your boots, though, when it comes to every stock. If you’re hesitant to buy stocks, consider these three.
1. Pharmaceuticals Vertex
Vertex Pharmaceuticals (VRTX -0.97%) has not been at all harmed by the significant decline in the stock market so far this year. The large biotech’s stock has increased by about 30% so far this year. Vertex might ascend even farther.
Vertex simply doesn’t care all that much about inflation or the possibility of a recession. The business is the exclusive provider of medicines to address the fundamental causes of cystic fibrosis (CF). Its closest competitors are years away from even having the potential to introduce competing medicines. Bottom line: No matter what happens to the stock market or the economy, Vertex’s CF medications will continue to bring in billions of dollars.
Two other late-stage medicines with blockbuster potential are in Vertex’s pipeline. The biotech company also has an early-stage program that it believes could eventually result in a treatment for type 1 diabetes.
The price-to-earnings-to-growth (PEG) ratio for the stock is extremely low at 0.38. Vertex seems to easily rank among the top stocks to buy right now with its alluring value and promising growth potential.
2. Dollar General
When the economy is struggling, shoppers are more frugal. This is particularly true when inflation is at levels that have not been witnessed in over 40 years. However, this is the situation in which Dollar General (DG -0.68%) flourishes.
Granted, the share price of the discount retailer is nearly where it was at the start of 2022. However, given the poor performance of the stock market as a whole, you may consider it a significant victory.
In an economic downturn, Dollar General can essentially survive. In a recession, its business ought to increase. High fuel costs may also work in the company’s favor because its more than 18,500 locations are all within five miles of around three-quarters of the US population.
However, the company can succeed without macroeconomic obstacles. Throughout the previous ten years’ boom times, Dollar General experienced rapid expansion. Investors can feel secure holding this investment in good and bad economic times.
3. Group UnitedHealth
Another stock that investors might enjoy is UnitedHealth Group (UNH -1.74%), which stands out as being recession-resistant. Over the years, the healthcare behemoth has become an expert at passing on rising prices to its clients.
UnitedHealth Group hasn’t produced stunning stock market gains this year like Dollar General. It is, nevertheless, in the positive, unlike the majority of other equities.
The company’s health insurance division, which operates under the United Healthcare name, is best recognized. This company consistently produces a healthy cash flow, making it about as reliable as they come.
The Optum division of UnitedHealth, though, is what spurs the most development. Value-based care, prescription benefit management services, healthcare technical support services, and many more are all offered by this market.
The U.S. economy is around one-fifth composed by that of the healthcare sector. Based on market capitalization, UnitedHealth Group is the largest healthcare organization in the world. Investors won’t likely lose any sleep over this kind of stock.
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