3 "Boring" Stocks That Could Outperform
We've put together a list of 3 "boring" stocks that could outperform below to help you get a better idea of the types of stocks to consider in 2022. Let's...
These 3 Conservative Stock Picks Are Worth a Look
Oftentimes, boring is a good quality to look for in the stock market. While it's certainly exciting to invest in high-risk, high reward companies that can potentially provide massive gains, there's something to be said about having a few reliable businesses that provide slow and steady returns over the years too. This is especially true during periods of market volatility, which can expose your portfolio to massive drawdowns if you have too much exposure to high-beta areas of the market.
Make no mistake, there's nothing boring about building wealth over time with strong businesses that have rock-solid fundamentals. These are the types of companies investors can add as core portfolio holdings, as they offer reliable earnings and even income in the form of dividends.
We've put together a list of 3 "boring" stocks that could outperform below to help you get a better idea of the types of stocks to consider in 2022. Let's take a deeper look below.
Lowe's Companies, Inc (NYSE: LOW)
It's hard to get excited about the prospects of making repairs to your home, but that shouldn't steer you away from looking at a company like Lowe's. It's a market leader in home improvement and retails building materials and supplies, lumber, hardware, and appliances through stores in the U.S. and Canada. Homeowners have been spending big to improve their living spaces during the pandemic, and continued strength in the housing market is a good sign that business will continue booming for Lowe's going forward. Many of the homes in the United States are decades old and in need of upgrades, while trends like Millennials moving into homes to start families could also benefit this company.
Lowe's is also a great stock to consider adding given the company's financial strength, and the company just announced a $13 billion addition to its share repurchase plan back in December. The stock has pulled back a lot from recent highs and could be a nice buy-the-dip opportunity for investors that have been interested in adding shares. The company will report its Q4 earnings on February 23rd, so keep an eye on how the stock performs heading into the release.
Johnson & Johnson (NYSE: JNJ)
This diversified healthcare company's stock hasn't done much over the last year, which means it could be gearing up for a big move out of consolidation. It's hard to argue against how important Johnson & Johnson's medical devices, pharmaceuticals, and consumer products are, and the company has a few different catalysts that could ignite a rally in the coming months. First, the company has 14 novel drug launches expected by the end of 2023, and if even one of those drugs is a success it could mean a big boost to Johnson & Johnson's revenue. Elective procedures are also expected to pick up again, which means more earnings from the company's medical devices segment could be on the horizon.
Johnson & Johnson is also a nice pick thanks to its 2.47% dividend yield and long-term history of dividend growth, as it's a dividend aristocrat stock. The company also recently beat consensus EPS estimates in Q4 and boosted its 2022 outlook, which points towards encouraging times ahead for the healthcare giant. While this might be a boring stock, it's still a great diversified healthcare company with plenty of upside to consider adding to your long-term holdings.
UnitedHealth Group (NYSE: UNH)
It's hard to get overly enthusiastic about health insurance, yet investors should still be excited about the gains that UnitedHealth Group is poised to deliver over the long term. It's the largest managed health care firm in the United States and a company that provides health plans, and health care delivery and optimization services to a variety of customers. The company recently announced it will expand its Affordable Care Act exchange offerings in seven new states, which essentially doubles the company's footprint and is a big positive for investors to consider.
This is a business with more momentum than many realize, as UnitedHealth reported full-year revenue of $287.6 billion, up 12% year-over-year, in 2021. The company expects to add 500,000 new patients in 2022 through its Optum business and deliver double-digit revenue growth again this year, which is another strong reason to consider adding shares. Quality healthcare has arguably never been more important in wake of the pandemic, and UnitedHealth is at the forefront of making sure America is covered.
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