Safeguard Your Future: Top 3 Stocks to Weather Any Market Downturn

Stocks to buy

An investor needs to be looking for stocks that can ride out a period of general downturn in the market. Three key players come to mind, each offering its own investment opportunity as a store of value in turbulent market environments.

The first one exemplifies outstanding organic revenue growth and shows evidence of the importance of core business operations and strategic insight. The second highlights a fantastic increase in digital sales and the capability to adapt to changing customer demand to position itself for further growth. The third company is an example of a growth driver for amazing performance in the oncology category and pipeline developments that increase operating income.

They are the top three stocks because they are historically stable and have sound strategic plans to protect them from the swinging market. These top three shares are historically strong and have well-thought-out strategic plans. Their ability to cope with adverse market movements enables them to be key runners with potential investors who would like to thrive in the financial future, guaranteeing their survival in unstable times.

Coca-Cola (KO)

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In Q1 2024, Coca-Cola (NYSE:KO) posted a stunning 11% organic sales growth during its first quarter of 2024. This expansion proves that the organization can increase sales through its strategic initiatives and fundamental business operations.

Additionally, the company had a substantial 13% gain in price/mix. This improvement comes from the fact that Coca-Cola follows both pricing initiatives and product mix, and these two factors positively contribute considerably to the uplift of the revenue growth rate. Therefore, although concentrate sales dropped by 2%, Coca-Cola increased its global unit case volume by 1%. As such, it is evident that the company’s distribution and sale practices are generating volume growth. Further, the company’s comparable operating margin (non-GAAP) increased to 32.4% against 31.8% a year back. Hence, this is a sign of growth in the company’s control over costs and efficiency efforts.

Finally, such an effect is also attributable to the benefits of the company’s franchising of bottling facilities. Therefore, the company’s improved resource allocation plan allows for investing in its portfolio with flexibility and discipline, providing further impetus toward overall financial performance and margin improvement.

Kroger (KR)

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Kroger (NYSE:KR) increased digital sales by 12% in 2023. Looking forward, Kroger hopes to attain double-digit growth in 2024. The company observed that consumers prefer to shop online and in-store together, spending 3x to 4x more than those who only shop in-store.

Moreover, Kroger’s focus on growing its digital sales demonstrates its flexibility in response to shifting consumer preferences. Additionally, spending increases due to the omnichannel strategy’s strengthening of consumer engagement and loyalty. Thus, technology investments maximize associate pick routes and increase the effectiveness of digital order fulfillment.

Further, more than 2,100 Kroger stores use end-to-end fresh practices. New approaches are resulting in improved share and higher produce sales. Expanding assortments and implementing handy in-store fresh-cut fruit programs are examples of new efforts. Freshness is emphasized to draw customers and set Kroger apart from rivals. Hence, growing its fresh-cut fruit offerings and local delicacies boosts Kroger’s fresh product sales and market share.

Finally, operating profit from alternative profit enterprises reached $1.3 billion in 2023. In 2024, Kroger Precision Marketing projects that the media industry will rise by more than 20%. In short, diversification into other profitable pursuits decreases reliance on traditional retail operations. In the event of a market downturn, you’ll be happy that you invested in Kroger.

Pfizer (PFE)

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With the contributions of Comirnaty and Paxlovid excluded, Pfizer (NYSE:PFE) saw a significant operating revenue increase in Q1 2024. When compared to Q1 2023, revenue was boosted by 11%. Strong commercial performance across the board, especially for important goods and markets, as well as more efficient resource and marketing strategy allocation, were the main drivers of this increase.

Moreover, Pfizer’s sales from oncology saw notable growth, as evidenced by a 19% operational rise in Q1 over Q1 2023. The acquisition of four in-line products from Seagen, especially the successful continued rollout of Padcev, was credited with this rise. The strength of Pfizer’s oncology portfolio is reflected in the rise in demand for important cancer medicines like Lorbrena and Xtandi.

Additionally, despite integrating costs from the acquired Seagen company, Pfizer’s strict cost management methods slightly increased overall adjusted operating expenditures. Compared to Q1 2023, adjusted gross margin increased dramatically in Q1 2024, rising by 5.3% to 79.6%. To sum up, this improvement was based on effective cost control throughout the production network, reflecting Pfizer’s focus on productivity and profitability. If there is a market downturn, you’ll want this stock in your portfolio.

As of this writing, Yiannis Zourmpanos held a long position in PFE. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.

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