With rising pressures evident in the consumer economy, market participants may want to consider the best investing ideas for the remainder of the year. That’s not to say you should exclusively focus on these publicly traded securities. However, if the broader market begins to falter, you’ll probably be grateful for exposure to stable enterprises.
Generally speaking, the best investing ideas at this juncture center on core necessities. That is, you want to focus on companies that will remain relevant even if economic conditions worsen. As such, you should consider letting off the gas on high-flying technology startups and acquiring shares of companies tied to boring but ultimately reliable industries instead.
No, it’s not a pretty picture. However, the months ahead may be about wealth protection as opposed to outright wealth attainment. On that note, below are the best investing ideas to consider.
Allstate (ALL)
Let’s face reality — no one gets up in the morning excited about buying shares in insurance giant Allstate (NYSE:ALL). With all due respect to the wonderful industry, the insurance sector is about as exciting as watching paint dry. Nevertheless, it also makes for one of the best investing ideas because of its pricing power.
You all may have noticed that your car insurance rates have gone up (and quite significantly for residents of certain areas). Now, I’m sure the reasons for the price hikes are legitimate. But even if they’re not, guess what? You still have to pay. That’s pricing power for you.
To be fair, Allstate’s financials appear messy, with a very low cash-to-debt ratio and some ugly hits to the profit margin recently. Nevertheless, the company sports an impressive three-year revenue growth rate (per-share basis) of 14.2%. And despite this performance, ALL trades at only 0.54 times sales, favorably below 75% of the competition.
Looking to the Street, analysts forecast a price tag of $126.42, implying over 14% upside. You very well might be in good hands.
Republic Services (RSG)
When the waste matter hits the proverbial fan, you can bank on Republic Services (NYSE:RSG) as one of the best investing ideas right now. Up nearly 13% since the start of the year, RSG slipped about 3% in the trailing month. This could be your chance to acquire a relative discount. After all, no matter what materializes in the broader economy, someone has to pick up the trash.
Considering Americans now carry over $1 trillion in credit card debt, this framework translates to plenty of waste. And the stickiness of consumptive behavior implies more waste production to come. Obviously, as a waste disposal specialist, Republic should clean up (metaphorically speaking) quite nicely.
Also, the company benefits from a natural monopoly. Given the political focus on environmental, social and governance (ESG) directives, would-be competitors just can’t grab a permit for making new landfills.
Turning to Wall Street, analysts peg RSG as a moderate buy with a $166.83 price target, implying over 15% upside potential.
Five Below (FIVE)
A chain of specialty discount stores, Five Below (NASDAQ:FIVE) is one of my favorites for best investing ideas. Obviously, with consumers facing pressure from factors such as stubbornly high inflation to household indebtedness, people need discounts. Five Below provides exactly that but with a touch of dignity, for lack of a better word.
I’m not here to trash literal one-dollar stores. However, Five Below presents a range of products that price up to five bucks. Also, the company offers select items that range between $6 and $25. Therefore, the stores don’t just cater to financially strained consumers but rather bargain hunters of all stripes.
Also, it’s a growth machine, printing a three-year sales expansion rate of 18.8%. It is consistently profitable — just what you’re looking for ahead of market uncertainty.
On a final note, analysts peg FIVE as a consensus strong buy. Their average price target stands at $210.50, implying over 24% upside potential.
On the date of publication, Josh Enomoto 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.
