Mostly thanks to overvalued AI equities, the market was already struggling to make any forward progress. With the S&P 500 (SNPINDEX: ^GSPC) making a series of lower highs and lower lows since late January, however, it seems stocks are outright succumbing to worries that the conflict in the Middle East will escalate, threatening the global economy as a result.
The matter isn’t quite as black and white as that, though. If you look closely, you’ll sense a growing “risk-off” attitude is at work, paired with subtly rekindled interest in safety and certainty.
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With that as the backdrop, although they’ve not made major gains just yet, here’s a rundown of three safe stocks investors could soon flock to as the prevailing mindset shifts away from risk tolerance to risk aversion.
It’s such a commonly suggested defensive pick that it’s almost become a cliché. Nevertheless, Procter & Gamble (NYSE: PG) offers the sort of certainty that could become monumentally important if most everything else continues unraveling.
You’ve heard of the company, but are you truly aware of how many leading brands are in this consumer staples giant’s family of products? Pampers diapers, Tide laundry detergent, Charmin toilet paper, Gillette razors, Dawn dishwashing liquid, and Crest toothpaste are just a small sampling of what’s in P&G’s portfolio. While Procter must work hard to remain competitive, it’s got the advantage of working with many of the best-known brands in several key categories of goods that consumers continue buying regardless of trouble here or abroad.
Yes, this company’s fiscal Q2 revenue missed estimates. Although per-share profits of $1.88 were up from the year-ago comparison of $1.78 as well as better than estimates of $1.86 per share, flat revenue of $22.21 billion fell short of the $22.28 billion that analysts were expecting. Investors were caught a bit off guard.
Just don’t read too much into last quarter’s numbers. As CFO Andre Schulten commented during the earnings conference call, “We’ve now completed what we fully expect will be the softest quarter of the fiscal year.” That’s the chief reason PG stock actually rallied immediately following the revenue shortfall.
The recent pullback is mostly just in response to the fresh conflict with Iran. But Procter’s household goods are largely unimpacted by this geopolitical tension as it stands right now. This dip simply further de-risks ownership of this name.
