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3 Safe Stocks for a Coming Market Crash

3 Safe Stocks for a Coming Market Crash

Last month’s slump was a reminder of how quickly the market can go from a rally to a pullback. In this case, the situation is looking bright. The S&P 500 has rebounded more than 7% since its September low, nearly recovering those losses. It’s impossible to predict whether the market will head higher or crash in the months to come. But we do know one thing: Long-term investors will surely face future market crashes. That’s why it’s never too early to prepare.

To me, the best way to insulate a portfolio is with shares I consider “safe.” These are companies that have proven their resilience after a crash, and at the same time they offer strong products/services and growth prospects. Sounds like a lot to ask? Well, these three healthcare names prove it’s possible to deliver the whole package.

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Annual revenue at Abiomed (NASDAQ: ABMD), a maker of circulatory support devices, has been climbing for more than a decade. During this time, the U.S. Food and Drug Administration (FDA) cleared its collection of Impella heart pumps — the world’s smallest — for elective and urgent procedures including stenting and balloon angioplasty.

Impella devices assist pumping during a procedure or during situations — such as cardiogenic shock — when the heart is unable to pump enough blood to organs. More recently, the FDA granted the Impella two emergency use authorizations (EUA) for the treatment of COVID-19 patients with heart and lung complications.

The coronavirus outbreak caused the postponement or cancellation of many elective procedures, which hurt Abiomed. Worldwide Impella revenue fell 22% in the most recent quarter. But the company said stenting procedures using Impella since have resumed in most locations. In addition to this rebound in traditional business, the COVID-19 EUAs offer Abiomed another

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3 Safe Stocks to Buy in a Not-So-Safe Market

3 Safe Stocks to Buy in a Not-So-Safe Market

Fears that another stock market crash might be imminent appear to have largely subsided. After dropping nearly 10% in September, the S&P 500 index has rebounded somewhat. But don’t think for a second that the market is safe right now.

a man wearing a suit and tie: 3 Safe Stocks to Buy in a Not-So-Safe Market

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3 Safe Stocks to Buy in a Not-So-Safe Market

Several factors could lead to increased volatility and even another plunge. President Trump’s medical team says that he “isn’t out of the woods yet” after being diagnosed with COVID-19. Some healthcare experts remain concerned about a second wave of the coronavirus pandemic this fall. Many investors worry that stocks are so highly valued that any bump in the road could cause a sharp downturn.

Such concerns don’t mean that you should avoid the stock market altogether, though. Here are three relatively safe stocks to buy in a not-so-safe market.

a person wearing a suit and tie: Person in a suit holding a small umbrella over stacks of gold coins.

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Person in a suit holding a small umbrella over stacks of gold coins.

1. Abbott Laboratories

Abbott Laboratories (NYSE: ABT) practically oozes security and stability. The healthcare giant has been in business since 1888, weathering plenty of economic and stock market storms for 132 years. It’s been No. 1 on Fortune‘s Most Admired Companies list for its industry for seven years in a row. Abbott is also a Dividend Aristocrat, meaning that it’s increased its dividend for at least 25 consecutive years.


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While many companies will be hurt if the COVID-19 pandemic worsens, Abbott’s diagnostics business gives it something of a safety cushion. The company markets six COVID-19 tests under the Food and Drug Administration’s emergency use authorization program. In August, the U.S. government bought 150 million of Abbott’s rapid BinaxNOW diagnostic tests for $760 million. 

Abbott isn’t just a defensive play, though. The company should have multiple growth drivers,

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