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Blue chips come with the reputation that they do well even during economic downturns and these large-cap and blue-chip stocks have what it takes plus even managed to outperform the market when combined.
Berkshire Hathaway Inc
One of the most recession-resistant stock at the moment but not without problems as Bill Ackman, the widely followed hedge fund manager, chose to exit his stake on Wednesday in Berkshire Hataway Inc (NYSE:BRK.B, BRK.A). Despite Buffet’s mistake by backing airlines only to sell all of the company’s airline stocks just a few weeks later as the investment of almost $8 billion didn’t get anywhere near its return, the company has a huge amount of cash which can be used to go on an acquisition spree so no need to worry! The same most certainly cannot be said for poor United Airlines Holding (NASDAQ:UAL), American Airlines Group (NASDAQ:AAL), Southwest Airlines Co (NYSE:LUV) and Delta Airlines Inc (NYSE:DAL) which are fighting for dear life with the $25 billion of governmental aid.
Despite the controversy regarding its privacy issues, the social media giant gathered 2.5 billion users. Along with subsidiaries Instagram and WhatsApp, Facebook (NASDAQ:FB) can be seen as triggering the two eternal human traits: ego and a desire to connect with others which made it only thrive more during the pandemic’s social distancing.
Dollar General Corporation
Speaking of recession-resiliency, the discount retailer Dollar General Corporation (NYSE:DG) just proved its status by a profit jump of 77% for the quarter that ended on May 1st.
With surging sales with a 28% increase, it showed a sound business that promises to fare well in uncertain waters as well as the promise of acceptable growth in a normal environment so there should be no concern that the previous guidance has been withdrawn due to uncertainty yet the company still expects to exceed the fiscal 2020 net sales, same-store sales, as well as diluted EPS guidance.
Novartis
It’s impossible to speak of resiliency in the COVID-19 era without mentioning the pharmaceutical sector. Novartis (NYSE:NVS) a $200 billion Swiss drug maker pays a respectable 3.5% dividend yield and uses just 56% of profits to do so. Since its new CEO took the wheel in 2018, the company acquired gene therapy company AveXis, spun off ophthalmology unit Alcon and agreed to buy a company that has a potentially ground-breaking drug to fight cholesterol and cardiovascular disease, so The Medicines Company is surely worth the $9.7 billion investment. Despite the intense rivalry, even in Switzerland with Roche Holding AG (OTC:RHHBY) as they are targeting the same diseases, Novartis has its throne to its advantage for now as Roche is still a midcap.
AbbVie Inc
From an attractive dividend to a compelling investment opportunity, the drug maker AbbVie Inc (NYSE:ABBV) is still a solid choice despite a recent failed attempt in testing an experimental drug for IBS.
Although COVID-19 has forced us to redefine ‘resiliency’ as even the 2008 Financial Crisis didn’t put the whole economy and the whole world to a virtual standstill, the immense power of blue chips has remained pretty much intact, especially when compared to others!
This article is not a press release and is contributed by Ivana Popovic who is a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . Ivana Popovic does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com Questions about this release can be send to ivana@iamnewswire.com