Sunday, May 29, 2022

8 Safe Stocks to Buy in a Volatile Market

Given the volatility that has been plaguing the markets for what now seems like forever, I thought this week's edition of U.S. News Invested was particularly relevant.  Enjoy and enjoy the holiday.  


MAY 26, 2022
U.S. News & World Report

Invested

Advice, rankings and stock market news for investors.
Good morning, investors. Stocks rise despite new Federal Reserve minutes showing commitment to higher rates.

Highlights of today's newsletter include our market insights plus these new articles:

8 Safe Stocks to Buy in a Volatile Market
7 Best Oil and Gas Stocks to Buy
7 Best Metaverse Stocks to Buy
TODAY'S FEATURED STOCK STORY

8 Safe Stocks to Buy in a Volatile Market

Adobe Headquarters in San Jose, California.
Elevated inflation, a war in Ukraine and aggressive Federal Reserve interest rate hikes have made 2022 a stressful, unpredictable and volatile year on Wall Street. With the S&P 500 down 17% year to date through May 24, it's understandable for investors to be looking to play it safer with their portfolios by buying high-quality, long-term investments that are stable and reliable. The Morningstar analyst team rates each stock on a five-point uncertainty scale from "low" to "extreme." Here's a list of eight safe stocks with low or medium Morningstar uncertainty ratings that investors can buy today to sleep easy at night:

Adobe Inc. (ticker: ADBE). Adobe is a leading provider of creative content software, marketing automation and e-commerce applications. Analyst Dan Romanoff says the situation in Ukraine has weighed on Adobe's 2022 guidance, but the company's first-quarter revenue and net new digital recurring revenue numbers were solid. Adobe shares have been dragged down by the broad sell-off in tech growth stocks this year. Romanoff says Adobe's stock was overvalued for much of 2021, but that it's now attractively valued following a 40% pullback in the past six months. Morningstar has a "buy" rating and $615 fair value estimate for ADBE stock, which closed at $398.41 on May 24.

Comcast Corp. (CMCSA). Comcast is a diversified media conglomerate that owns TV and movie assets and theme parks. Analyst Michael Hodel says investors should expect the company's cable business to continue to slow, but Comcast shares are still "deeply undervalued." Hodel says a prolonged period of steep customer losses is unlikely, and Comcast's 262,000 net broadband customer additions in the first quarter are proof that the company's customer base is still growing. In addition, he says, Comcast generates impressive cash flow and has a strong balance sheet. Morningstar has a "buy" rating and $60 fair value estimate for CMCSA stock, which closed at $43.07 on May 24.  

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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