It is difficult to choose stocks that can be winners during volatile market conditions. The stock market experienced a major downturn last week, followed by a setback. Perhaps the worst is over, but it is just as possible that an even steeper correction is on the way.
I can name a fairly long list of stocks that should be long-term winners. But it is not so easy to identify those who can withstand gravity during a short-term rocky battle. There are some who can do it. Here are three stocks that I really think will make you richer in March (and beyond).
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1. Alphabet
In my opinion, one of the best ways to find stocks that can withstand a storm well is to see who is already doing it. As an example, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) actually made a small profit last week while most tech stocks had tank.
How does Alphabet keep up so well? First, it is rock solid from a financial standpoint. It reported nearly $ 57 billion in revenue and more than $ 15 billion in profit in the fourth quarter. The company’s cash supply is approximately $ 137 billion. Few companies even come close to Alphabet’s financial strength.
Investors also acknowledge that Alphabet’s wealth is likely to improve in the short term. With a light at the end of the tunnel now visible with the pandemic, the economy should recover. This is good news for the Alphabet’s search platforms, which could benefit from increased advertising spend. It should also help maintain the already solid momentum for the company’s Google Cloud business.
In addition, Google has just launched YouTube Shorts in the US market. This new feature competes directly with the popular TikTok video sharing app. With these short-term drivers combined with long-term opportunities, including Waymo’s self-driving car technology, I think Alphabet is likely to be a winner this month and for the next decade.
2. Partners for business products
Business Product Partners (NYSE: EPD) is another stock that rose against the grain last week with its shares rising by almost 9%. The main catalyst for the midstream energy company was the announcement that it was buying power from a solar project developed by EDF Renewables.
2020 was a difficult year for the energy sector. Enterprise Products Partners’ fourth-quarter results reflected this, with the company’s earnings and cash flow significantly declining from the previous year.
However, the company looks to be making a great repair this year. The deployment of vaccines combined with government stimuli should increase the demand for natural gas and oil. Enterprise is also moving forward with three major projects in the short term that should generate additional cash flow, including the expansion of its ethane pipeline to the U.S. Gulf Coast.
There is also an important way Enterprise Products Partners will make investors richer: its dividends. The company’s distribution return is currently a little less than 8%. This stock does not need much appreciation to generate total returns that can easily beat the overall market.
3. Pfizer
Pfizer (NYSE: PFE) stands out as a leader to end the pandemic. The BNT162b2 vaccine marketed with partner BioNTech has already been given to millions of people. And just like Alphabet and Enterprise Products Partners, Pfizer’s shares rose last week, even as the stock market scrambled.
The major drugmaker reported good news on Wednesday that helped increase its inventory. Pfizer announced that the Food and Drug Administration has approved Lorbrena as a first-class treatment for anaplastic lymphoma kinase-positive non-small cell lung cancer (NSCLC). The drug is already on the market as a second-line treatment for NSCLC.
This latest approval is another part of Pfizer’s rejuvenation. After several years of underperformance, the company now expects to deliver solid growth. One of the main reasons is that Pfizer is no longer being bullied by older drugs that lost patent exclusivity following the merger of its Upjohn unit with Mylan in November, which formed a new company, Viatris.
But the big story for Pfizer over the short term is definitely BNT162b2. The company said in February that it expects sales of the vaccine to reach $ 18 billion this year. It appears that the number is likely to increase as Pfizer and BioNTech create additional offering offerings, making both companies – as well as Pfizer shareholders – richer.
This article represents the opinion of the author, who may not be in agreement with the ‘official’ recommendation position of a Motley Fool premium advisory service. We are furry! Questioning an investment thesis – even one of our own – helps us all to think critically about investments and to make decisions that help us become smarter, happier and richer.