diversification is the edge for any wallet. Rising inflation affects discretionary consumer spending. These stocks are usually good recession hedges by either thriving in a recessionary period or being essential products needed regardless of the economic landscape. The following four companies are: shoot all cylinders and are leaders in their respective industries weathering inflationary headwinds.
Nvidia (NASDAQ: NVDA) is the the world’s leading graphics processor unit (GPU) maker. Their chips are mainly used for gaming and data center applications. They make high-end GPUs used in high-end gaming PCs as well as cryptocurrency mining rigs. Their chips are also used in data centers and artificial intelligence (AI) applications. The company recently slashed its revenue forecast for Q2 2022 revenue, bringing it to nearly $6.7 billion, from its previous forecast of $7.94 billion to $8.26 billion. Weakened consumer confidence impacts the gaming segment, while supply chain disruptions impact data center operations. This is a boon to patient investors who have been waiting to get in at lower prices. Shares are down (-37%) for 2022. The $140.55 swing low and/or $192.74 breakout are entry levels to consider.
Costco: Warehouse Clubs/Consumers
Costco (NASDAQ: COST) is the world’s largest club membership warehouse. While retailers like Target (NYSE:TGT) and Walmart (NYSE: WMT) cutting guidance amid attenuation consumer spendingCostco is firing on all cylinders. Stockpiling has helped Costco during the pandemic, and it may help again in the future recession while consumers try to stretch their wallets. They just reported that July comparable store sales are up $10.8% to $16.85 billion, despite one day less than last year. E-commerce comparable sales increased by 10.2%. This stock also comes with a $0.63% dividend yield. Shares are down (-5%) for 2022. The swing low of $406.51 and/or the breakout of $491.13 are entry levels to consider.
Abbott: Medical Life Cycle/Healthcare
Abbott (NYSE: ABT) is a global medical technology company providing healthcare products for every stage of life, from infant formula to testing and treating the fastest growing chronic diseases. For more than 130 years, they have employed more than 113,000 employees in more than 160 countries. Their portfolio of over 1,200 products includes: medical equipment, diagnostics, nutrition and branded drugs. This enables them to be a trusted and preferred one-stop shop for patients throughout their lives. A lung patient can receive a XIENCE Sierra coronary artery stent or a St. John’s Medical pacemaker, both of which are owned by Abbott. Their FreeStyle Libre blood glucose meter no longer requires finger pricks (prick a finger for blood). Their nutritional products for Zorg, Pedialyte and Similac can be found in almost every supermarket. They continue to grow as revenues grew 10.1% to $11.26 billion in the second quarter of 2022, while bumping their full-year 2022 EPS to approximately $4.90, versus estimates by consensus analysts of $4.86. Abbott is a dividend aristocrat with a dividend yield of $1.67%. Shares are down (-19%) for 2022. The swing low of $101.24 and/or the breakout of $111,148 are entry levels to consider.
Pure Storage: Data Storage/Data Storage
Pure Storage (NASDAQ: PSTG) is the world’s most advanced provider of data storage solutions. As the world continues to produce oceans data, it must be consumed, stored and managed. Regardless of the economic climate, data will also be a constant. Pure Storage offers a portfolio of enterprise storage solutions, including storage-as-a-service (SaaS) across multiple clouds through a subscription model and delivering hybrid cloud architecture for apps. They continue to gain market share in the business storage market. Their fiscal profit for the first quarter of 2023 exceeded estimates by $0.20 per share, while revenue grew 50% from analysts’ estimates by nearly $100 million, representing $620.41 million vs. 521.981 million. They raised revenue for the full fiscal year 2023 to reach $2.66 billion, surpassing analyst estimates by $2.59 billion. Shares are down (-5%) for the year. The swing low of $21.90 and/or the breakout of $26.10 are entry levels to consider.
Each chart has two horizontal green lines for possible entry levels. The bottom green line is the recent swing low price and the top green line is the reversal level. Entries can be made at both levels when prices test them.
The monthly stochastic is a momentum indicator. An indicator-based input system can be used by taking a position when the stochastic oscillator goes back up (IE: blue line crosses up through the red line).
NVIDIA is part of the londonbusinessblog.com Index, which tracks some of the largest publicly traded companies founded and run by entrepreneurs.