The saying that nothing is certain except death and taxes may need to be amended to include a market crash. While no one knows when it will occur, eventually it will. When it does, investors tend to sell stocks off indiscriminately, and even strong companies see their prices go down.
When that happens, if you have funds available, here are three high-quality companies in which you can pick up shares…
Amazon (NASDAQ:AMZN) has become a powerhouse by intensely focusing on the customer. It sells just about anything you can think of online at competitive prices, which has been a winning strategy. The popular Amazon Prime subscription service provides fast delivery and even a streaming service. Even when the pandemic subsides, people are undoubtedly going to continue ordering goods online after seeing the benefits, which will only help the company.
It is not merely an online site, though. Amazon sells hardware like the Kindle and Alexa-enabled devices. That’s not even mentioning its fast-growing (with a 30% revenue increase in 2020 to $45.4 billion) and high-margin (with a 30% operating margin) Amazon Web Services division. This is a leading cloud computing business that allows companies to use a ton of data to (hopefully) make better and faster decisions.
Earlier this month, it reported fourth-quarter results, posting another period of stellar sales growth. For 2020, Amazon’s sales increased by 38% to $45.4 billion, and its operating income was $22.9 billion, a 57% increase.
2. Johnson & Johnson
Johnson & Johnson (NYSE:JNJ) is around 135 years old, and perhaps best known for its consumer products, such as Band-Aid, Tylenol, Motrin, Carefree, and a host of other well-established brands. But it also has a pharmaceutical business that produces drugs to treat diseases like cancer, arthritis, diabetes, and hypertension, and a medical devices unit whose products are used in surgery, orthopedics, and other fields.
The pandemic hurt certain businesses, particularly as physicians and patients put off elective surgeries, in 2020. But Johnson & Johnson showed its resilience as demand for its other products remained strong, and results improved throughout the year. In the fourth quarter, its adjusted sales rose by more than 7%.
Management expects adjusted sales to grow by nearly 9% this year, driving earnings per share more than 16% higher. Meanwhile, the company released data on its single-dose COVID-19 vaccine last month, and it applied to the U.S. government for emergency use. Its guidance doesn’t include any impact from the potential treatment.
Johnson & Johnson has…
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