As market volatility begins to stir after a prolonged period of tranquility, the imminent concerns surrounding inflation, upcoming elections, and seasonal fluctuations cast a shadow on stocks. To fortify your portfolio against the onslaught of turbulence, it’s prudent to divest from high-flying growth stocks and allocate to crash-resistant equities.
Kimberly-Clark: A Steady Ship in Turbulent Waters
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Kimberly-Clark (NYSE: KMB) emerges as a beacon of reliability in the stormy seas of market unpredictability. With its diverse portfolio of essential personal care and consumer tissue products spanning across 175 nations, the company plays an indispensable role in the lives of a significant fraction of the global populace.
While facing challenges, particularly amidst inflationary pressures, Kimberly-Clark’s strategic cost optimizations have borne fruit. Despite a slight dip in net sales to $5.1 billion, the company reported a robust 6% growth in organic sales.
The firm’s operational efficacy was a standout, exemplified by a notable 390-basis point uptick in gross margins to 37.1%. Operating profits spiked from $787 million to $853 million year-over-year, propelling adjusted earnings per share to $2.01, marking a commendable 20% surge.
Projections for 2024 indicate a mid-single-digit organic sales growth trajectory, with adjusted EPS growth revised from high-single digits to a low teens percentage. Bolstered by the resilience of consumer staples and augmented profitability through enhanced productivity, Kimberly-Clark stands tall as an enticing shelter for investors amidst market choppiness.
Progressive: Driving Through Market Hazards
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Progressive (NYSE: PGR), a stalwart in the U.S. auto insurance realm, has revved up by 30% year-to-date, demonstrating resilient progress amid market jitters. With a beta of 0.35, signaling lower volatility than the broader market, the insurer presents an appealing sanctuary for investors seeking stability in tumultuous times.
Besides, the affirmative outlook for the auto insurance industry coupled with the mandatory nature of auto insurance ownership positions Progressive advantageously. Ever the innovator, Progressive’s early embrace of telematics paved the way for reduced premiums vis-a-vis competitors, elevating underwriting profitability and carving a path for augmented market share expansion.
Forecasting ahead, Progressive basks in a position of strength, commanding a 15.3% slice of the U.S. auto insurance market in 2023. Analysts project a further leap to over 18% by 2028, underpinned by its robust competitive standing, innovative strategies, and opportunities instigated by shifting market dynamics. Indeed, Progressive stands tall as a shield against market perils in these turbulent waters.
General Mills: A Wholesome Anchor in Market Storms
General Mills: A Buffet of Resilience in the Market
General Mills (NYSE:GIS) boasts dominance at the breakfast table and stands as a titan in the $10 billion cereals market. Featuring renowned brands like Cheerios and Nature Valley, it has solidified its market position for sustained category supremacy and robust ties with retailers.
Strength Beyond Cereal
Not merely a cereal powerhouse, this stalwart displays remarkable resilience, exemplified by its flourishing pet business. Blue Buffalo, the pet food division, contributes 12% of the company’s revenues. Offering a range of pet products from wet food to treats and dry food, this segment continues to steer organic sales growth.
Expanding Horizons
General Mills has strategically advanced its pet business, paving the way for forays into diverse global markets. Anchored on April 30, by the acquisition of Edgard & Cooper, a swiftly emerging pet food entity in Europe, the company secures premium pet labels and extensive distribution networks spanning 13 European territories.
Financial Fortitude
General Mills’ robust presence in the cereal realm renders it a top-notch crash-resilient stock. Foremost, its pet business promises sustained revenue upsurge, evolving into a significant revenue stream. Trading at a mere 16 times forward earnings, this consumer essential offers an enticing investment proposition. Moreover, its minuscule beta of 0.12 curbs volatility, ensuring steadfast downside protection.
On the date of publication, Charles Munyi did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.