Even though there will always be stock market volatility, traders shouldn’t worry about short-term declines. In the end, stocks reflect the growth potential of the underlying company. Sustainable revenue and profit growth over the long run are what truly make an unstoppable stock generate significant wealth for its shareholders.
When macroeconomic conditions become uncertain, investors can turn to certain stocks that have a track record of defying market downturns. Here are three unstoppable stocks long-term investors will want to consider on any significant downturn moving forward.
McDonald’s (MCD)
McDonald’s (NYSE:MCD) is one of the largest fast-food restaurant chains in the world. While the broader market has been down since early 2022, this company is setting new highs. Sales growth and profitability are increasing, making it an attractive option for Wall Street despite consumer spending cutbacks in other areas.
McDonald’s stock has gained over 8% in equity value since the start of the year due to its Q1 2023 net income increase. Although McDonald’s impact on consumer health is a concern, analysts view it as a strong buy due to its potential for portfolio growth, with a target price of $317.79.
McDonald’s is thriving in the expanding fast-food industry with a 13% increase in comparable-store sales in Q1. The chain is outpacing competitors like Chipotle (NYSE:CMG) and Starbucks (NASDAQ:SBUX) due to higher customer traffic and increased spending from rising menu prices. Customer satisfaction initiatives such as better staffing, training and quicker order delivery are contributing to this growth, making it more sustainable than relying on new limited-time menu items. This is good news for investors.
Newmont Gold (NEM)
Despite the Federal Reserve’s continuous tightening of monetary conditions, gold is performing strongly lately. This should make it deflationary for gold, but it hasn’t been the case. Therefore, Newmont Gold (NYSE:NEM) is a potential option for investors looking for inflation-resistant stocks.
Newmont is an attractive option for investors seeking inflation-resistant stocks due to the strong performance of gold, despite the Fed’s monetary tightening program. The company’s copper business is also a contributing factor to its success. Although its financials may need some improvement, analysts rate NEM as a strong buy with an average price target of $59.59, indicating a potential 46.48% upside.
Newmont has strong high-quality assets, with 96 million ounces of reserves, ensuring stable production in the future. It has planned to reduce its all-in-sustaining cost over the next three years, which will lead to EBITDA margin expansion, even if gold prices remain flat. With a stable investment-grade balance sheet, Newmont is well-positioned to provide sustained shareholder value.
PepsiCo (PEP)
Investors today may not recall the 1980s cola wars between PepsiCo (NASDAQ:PEP) and Coca-Cola (NYSE:KO), as both companies have expanded beyond carbonated drinks. This strategy has enabled them to provide shareholder value through dividends and share buybacks.
But for several decades, PepsiCo has proven to be a popular pick for dividend shareholders looking for steady revenue. But the stock has also attracted other investors, as it recently surged to record highs and approached the $200 level.
PepsiCo outperformed the overall market with strong Q1 earnings per share of $1.50 versus the anticipated $1.37. Sales for the firm climbed by 10.2% to $17.85 billion, exceeding estimates of $17.27 billion and demonstrating PepsiCo’s tremendous expansion.
PepsiCo recently increased its dividend by 10%, and also raised its full-year organic growth guidance. This food and beverage conglomerate has an impressive brand and a long history of raising its annual payout for 51 years straight, making it an attractive investment option.
On the date of publication, Chris MacDonald has a position in MCD. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
