The stock market has been performing very well recently, with the impressive growth of the S&P 500 Index, which has surged by 15% just within the last six months. It’s bolstered by the boom in artificial intelligence (AI) and similar technology, reduced inflation and hopes of interest rate cuts during 2024.
While the market is booming, most investors aren’t considering a possible downturn and how to prepare accordingly. It is best to have a game plan in place before it may take place. This could involve a number of options, but most importantly, choosing solid stocks that can be the backbone of an investment portfolio.
Below are a few go-to investments that are perfect when uncertainty is plaguing the market. These are companies from multiple sectors that should still provide stable returns in nearly any environment.
Salesforce (CRM)
Salesforce (NYSE:CRM) offers an online platform that provides sales data, forecasting, business workflow capabilities and other analytics services using its generative (AI) for a number of businesses such as financial services, industrials, healthcare, as well as government agencies.
On Feb. 28, Salesforce released its earnings for the fourth quarter full fiscal year 2024, which stated that total revenue increased by 11% year-over-year. A net loss of $98 million for Q4 fiscal year 2023 was reported, and for Q4 fiscal year 2024, it shifted to net income of $1.4 billion. CRM also announced its first quarterly dividend of forty cents per share, payable on Apr. 11.
Salesforce’s new product, Einstein Copilot, is an artificial intelligence platform that focuses on automation. It is expected to lead to added growth potential.
Salesforce has experienced consistent growth and strong fundamentals, and with its growing involvement in the revolutionary generative AI movement, it’s a great pick to hold long-term.
Innovative Industrial Properties (IIPR)
Innovative Industrial Properties (NYSE:IIPR) is a real estate investment trust (REIT) that operates over 100 facilities in 19 states that engage in the regulated cannabis business.
IIPR is a must for any investor prioritizing income generation. It offers an annual dividend yield of approximately 7.39%, paid out quarterly, and has seen six consecutive years of dividend increases. Qualifying REITs comes with several obligations, including that legally, they must pay 90% of taxable income to investors in the form of dividends, which is why REITs typically offer an above-average yield compared to other industries.
Over this past year, its stock price has increased by 20%, which is fairly impressive compared to other industrial REITs.
On Feb. 26, IIPR reported earnings for the fourth quarter and full year 2023, and it stated that total revenue increased by 12% and net income remained practically unchanged.
IIPR offers a very stable dividend yield that is perfect for long-term investing. It is also a solid investment option because it continues to add new tenant partners.
Sprouts Farmers Market (SFM)
Sprouts Farmers Market (NASDAQ:SFM) operates over 400 food retail locations that supply customers with food, beverage and personal care products.
On Feb.22, Sprouts beat analyst expectations on its fourth quarter earnings in which total sales grew by 8% and net income rose by 11%. Sprouts also announced that it opened six new stores. The stock price jumped by 11% following the earnings press releases. It began to trend even higher after BofA upgraded the company to a Buy rating and set its price target to $70, citing the potential for sales growth and dwindling competition.
Sprouts Farmers Market is one of the best-performing consumer staples stocks this last year, and its share price has nearly doubled. It has ironed out its consumer traffic issues during 2023, and with a strong balance sheet, Sprouts still offers investors decent upside potential.
As of this writing, Noah Bolton 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.
