2 safe stocks to buy in this bear market: Apple and AstraZeneca

Writing for The Motley Fool on Wednesday, David Jagielski highlights what he calls “2 safe stocks to buy in this bear market” – Apple and AstraZeneca. Apple is generating huge free cash and remains one of the safer growth stocks to own today, Jagielski says, and AstraZeneca’s business has been strong, plus a promising cancer treatment could unlock more growth.

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David Jagielski for The Motley Fool:

Although the near term looks challenging for many businesses, there are some great stocks to buy and hold for the long term. Both drugmaker AstraZeneca (AZN) and tech giant Apple (AAPL) are in good shape to weather the current conditions and generate strong results for investors from here on out.

Apple [is] a favorite of Warren Buffett, the company was once referred to by the billionaire investor as “probably the best business I know in the world.”

It’s a hard statement to argue with given that despite its high-priced products, which often retail for more than $1,000, the company continues to generate growth. That strong brand loyalty could make Apple one of the better-performing growth stocks to own, even during a recession. In the second quarter of fiscal 2022, Apple’s revenue topped $97.3 billion for the period ended March 26 and rose 9% year over year.

Although its dividend yield is fairly modest at just 0.7%, the company rewards investors through its buybacks and the share appreciation they will likely profit from in the long term. Over the trailing 12 months, Apple has reported free cash flow of $105.8 billion. And of that total, it spent $85.8 billion on share repurchases plus $14.7 billion on dividend payments.

Shares of Apple are down 26% this year, but that’s likely due to the broad correction that’s happening in the markets right now as opposed to anything the business is doing wrong. Apple’s cash-rich operations make it one of the safer tech stocks to own today, and buying it on the dip could be a great move for long-term investors.

MacDailyNews Take: So far today, Apple is holding the line above $135. Expect the stock to bop around with the gyrations of the market and economic news until a strong-enough catalyst appears to move the needle (Q3 results are due at the end of July).

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