No one can predict the next market crash or correction, but you can prepare for it. In this segment of Backstage Pass, recorded on Jan. 26, Fool contributor Rachel Warren discusses her top stalwart stocks to buy right now.
Find out why Shopify is one of the 10 best stocks to buy now
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Rachel Warren: For me, when I was thinking about this, in terms of a higher volatility stock that I would actually like to buy more of because I currently own, that would be Shopify (SHOP -4.85%). Last I checked earlier today, Shopify is down, I think, 40% over the last month.
It's down nearly 50% from its all-time high. The company reports its earnings for the full-year and fourth quarter, I believe, in early February. So I'm eager to see those. But its share price may be all over the place lately, but I just think this provides an excellent opportunity to buy the stock on sale. I mean, you could argue that it's still robustly valuated.
I think last I checked, it was trading at something like 32 times trailing earnings. But it just continues to make these strategic business moves that I think really inform a really strong long-term growth trajectory for this business.
Last week, we discussed how Shopify and the Chinese e-commerce giant JD.com (JD -2.12%) had struck up this major partnership, which is essentially going to make it really easy for U.S. merchants on Shopify to tap into the multi-trillion-dollar e-commerce market in China. China is the world's largest e-commerce market, and it's on track to hit a valuation of $3.3 trillion by 2025.
So just enormous potential there for Shopify. This is a company that continues to turn incredible top-line growth quarter after quarter, as well as just astounding gross profits. I know gross profit dollars in the most recent quarter were up 50% year-over-year. So just a fantastic company that I think has just been hit by the same downward spiral we've seen for other high-growth, tech-oriented stocks, but still a fantastic company to buy.
In terms of lower-volatility plays, a great basket I thought of just the top of my head two of which I currently own. Apple (AAPL -0.78%), always a classic play in tech, has been prone to a lot less volatility than many of the other companies in the sector have seen. A dividend payer, albeit a lower dividend, and then two classic value stocks, Procter & Gamble (PG 0.22%) and Johnson & Johnson (JNJ 0.12%).
With Procter & Gamble, you're getting a company that's not going to deliver that lightning-fast portfolio growth, but the company has been selling these household name products that everyone uses for so long. It just has that constant staying power, and I think its dividend currently yields around 2.2%. Then Johnson & Johnson has a current dividend yield of about 2.5%.
Both of these companies have been paying out dividends and raised those dividends for 60 years or more. I believe this will be J&J's 60th year of consecutive dividend increases, so just really classic value plays within their respective spaces if you're wanting to invest in more stable companies.