Several Resilient Stocks Worth Buying
A stock market crash may be coming, but there is no need to panic. People should consider buying stocks that can buttress their portfolios, stocks such as American Water Works, Royal Gold, and Waste Management.
Undoubtedly, American Water Works deserves attention. It is a good choice for investors who are looking for conservative options to strengthen their portfolios. In many cases, utility stocks operate in regulated markets that provide good visibility into future cash flows. This is the case with American Water Works.
Over the past three years, its regulated business segment accounted for an average of 86% of the company’s operating revenue. The company is confident in forecasting how much green will flow into its coffers in the next several years. It expects to grow EPS at a compound annual growth rate of 7% to 10% through 2025 from $3.91 in EPS it reported in 2020. The company’s basis for this forecast is predicted on the expectation that $9 billion in capital expenditures for its regulated businesses over the next five years will account for 5% to 7% of the projected EPS growth. The balance of the EPS growth will seemingly come from the company’s market-based businesses segment as well as acquisitions.
Lucrative stocks
Experienced investors understand the importance of finding robust stocks that can help to deal with challenges. There are other lucrative options as well, and investors also dig gold stocks, as they want to bolster their portfolios.
One of the best opportunities for investors to gain gold exposure is by investing in companies such as Royal Gold. Such companies provide upfront capital to the mining companies to help finance the capital-intensive projects. They retain the rights to purchase a present quantity of gold or other metal at a reduced price. Another option for such companies is to receive a percentage of the asset’s mineral production.
Over the past 10 years, Royal Gold outperformed the price of gold and leading mining companies Barrick Gold and others. Apart from the gold, it also makes a profit thanks to other metals, including silver cooperate.
Waste Management is the largest publicly traded waste management company in the U.S. The company surpassed expectations in Q1 as the revenue reached $4.1 billion. It even exceeded its own expectations. Thanks to impressive performance, the company’s management upwardly revised its 2021 guidance. The management also raised 2021 free cash flow guidance to about $2.4 billion.
