2 stocks to add to your wish list for the next market crash, and 1 to forget.
In an ever-changing stock market environment, where do you turn when the ground seems to be shaking with uncertainty? Imagine the moment when a stock price crashes dramatically, sending frantic alarm bells ringing on Wall Street. This is the harsh reality of a market crash. In these volatile times, wise stock selection is paramount.
This is where having a ready wish list of reliable stocks becomes invaluable. Coca Cola (Watt-hours 0.31%) and McDonald’s (MCD 0.23%) It is a product that provides stability even in economic downturns.
Backwards, global-e online (GLBE -1.81%) It emerges as a more turbulent player, potentially swayed by seismic shifts in the market.
Wishlist: Coca-Cola provides refreshing essentials in turbulent times
Coca-Cola is an investment powerhouse whose vitality can be felt all over the world. The beverage giant operates across more than 200 countries, satisfying investors’ desire for stability. In a rollercoaster third quarter, Coca-Cola’s net profit soared 8% to a stunning $12 billion, demonstrating not only a sharp rise in financial performance but also a steady upward trend.
The company is also a leader in dividends. That is, regular payments that increase the value of your investment. The dividend has been increased every year since 1963. Based on recent share prices, the final distribution of $0.46 per share would provide an annualized return of approximately 3.1%, providing a steady stream to enrich your investment pool, which will be especially attractive during difficult market times.
But Coca-Cola is navigating a maze of fierce competitors, ever-changing consumer preferences, and a complex global supply chain. Our proven ability to adapt, our extensive network, and our knack for winning the hearts of consumers around the world continue to lead us. For investors seeking a mix of sustained value and growth prospects, Coca-Cola’s global reach and strong financial strength present a refreshing wish list option even in times of market uncertainty.
Wish List: McDonald’s continues to see steady growth.
McDonald’s is a global corporation that feeds billions of people and is recognized by its iconic golden arches. The culinary giant nourishes investor portfolios and customers across more than 100 countries. These numbers tell a mouth-watering story. In the most recent quarter alone, global comparable sales increased 8.8% and system-wide sales increased 11%, demonstrating our ability to deliver continued growth even as economic conditions change.
The “Accelerate Arch” strategy demonstrates our commitment to evolve with the times, enhance the customer experience, and strengthen our bottom line through smart technology, menu refreshes, and space modernization. The result is a generous dividend of $1.67 per share and a forward dividend yield of 2.3%, giving shareholders a share of the profits.
McDonald’s is still navigating a maze of evolving tastes and fierce competition. But thanks to its global presence and ability to adapt to changing needs, the company is adept at reinventing itself. From customizing menus to reflect local tastes to embracing digital innovation for more seamless service, McDonald’s has mastered the art of turning potential risks into opportunities for growth. When the market clouds gather, McDonald’s will stand out as a champion of sustained performance and strategic foresight, a culinary king who offers the secret to stability and growth amid financial storms.
Forget it: Global-e’s high risk is taking it off your wish list.
As a pioneer in the cross-border e-commerce landscape, Global-e has recorded impressive growth while transforming the way online retailers access international markets. In the third quarter, total product volume increased 35% and sales increased 27% compared to the same period last year. This demonstrates Global-e’s strong position in the rapidly growing e-commerce industry.
But the appeal of Global-e’s rapid rise is tempered by the specter of higher risks, which will become especially noticeable if markets falter. The forward price-to-earnings ratio, sitting at a high 45.9, represents a premium valuation, putting it in a precarious position when markets are volatile. Additionally, the beta version of 1.16 shows greater sensitivity to market fluctuations. On average, Global-e’s stock price is experiencing 16% more pronounced fluctuations than the overall market, which is a concern amid financial turmoil.
Focused on enabling global e-commerce, Global-e’s operating model navigates the maze of international trade laws, a changing regulatory environment, and consumer sentiment that can change rapidly with economic trends. In the event of a market downturn, these challenges are likely to escalate and Global-e’s operations could potentially be limited as consumer spending agreements and regulatory hurdles increase. With its future at stake at the relentless pace of e-commerce innovation and in an arena filled with fierce competition and regulatory complexity, Global-e’s journey is high in potential but also high in risk. For investors, the juxtaposition of opportunity and vulnerability warrants a cautious approach, especially as storms gather on the economic horizon.
In uncertain times, strategic choices are paramount.
Smart investors know the importance of a well-organized wish list. Coca-Cola and McDonald’s, with their legacies of resilience and growth, are stalwart companies you’ll want to have in your portfolio at the start of the financial crisis. Conversely, Global-e may not be on your wish list despite its commendable trajectory in the e-commerce sector. While recent growth may be attractive, the heightened risks it carries suggest it may be wise to pull back when the economic sky darkens.
When evaluating options, remember that investing is not simply choosing stocks. It’s about creating a strategy to get you through all seasons, including preparing for market crashes. Their blend of stability and adaptability makes Coca-Cola and McDonald’s prime candidates on wish lists, promising not only survival in a recession but also potential growth, or at least the possibility of dividends. At the same time, approach Global-e with a discerning eye, recognizing that its high-risk profile may not be suitable for everyone. This is especially true when financial forecasts take a storm.