The market's decidedly down this year. As of last look, the S&P 500 (^GSPC 0.94%) is off more than 10% from where it closed in December. And while we've seen the occasional flash of bullish brilliance between then and now, it certainly feels like things could get worse before they get better.
There's something of a silver lining behind this cloud, however. That is, the sell-off has dragged a bunch of stocks lower that didn't deserve the punishment they got. You can step into them now at a bargain price. Here's a closer look at three of these no-brainer picks you may want to think about buying sooner than later.
Procter & Gamble
Consumer products titan Procter & Gamble (PG -0.04%) is more than a no-brainer pick. It's almost a cliche. It's obvious to nearly everyone that consumer goods like Tide detergent, Gillette razors, and Bounty paper towels are perpetually marketable in any economic environment at almost any affordable price. And yet, the stock's still down 9% from its January high -- an outright rout for a name of this kind.
Blame a combination of inflation, supply-chain issues, weak stock market, as well as Russia's invasion of Ukraine. Higher fuel and materials costs are forcing P&G to impose higher prices on consumers. Doing so, however, requires kid-glove handling as not all of those cost increases can be passed along.
As for Russia's invasion of Ukraine and the tragedy unfolding there, P&G has joined with many other companies in scaling back or halting its activities in Russia. Meanwhile, Procter & Gamble does business all over the rest of the world, operating 23 manufacturing facilities within the United States alone and another 82 sites spread across 36 other countries -- giving it great global diversification.
At the same time, the prospect of rising interest rates should start to curb inflation sooner or later -- and that will help keep P&G's rising costs in check.
MGM Resorts
While the COVID-19 pandemic has not yet gone away, much of the world seemingly has declared it essentially over. Mask mandates are being dropped. Workers are returning to offices. People are starting to travel again. Finder's Travel Index indicates, in fact, that 26% of U.S. residents are planning to travel somewhere within the next three months. Globally, that figure is 41%. Both are well up from year-ago and prior-quarter comparisons.
This metric bodes well for MGM Resorts (MGM 0.19%), which of course operates casinos in the U.S. and abroad. Gamblers in most parts of the world appear ready to get back to it. The Nevada Gaming Control Board reports that the state's gaming revenue reached a record-breaking $13.4 billion in 2021, with records being set every month except the first two months of last year -- and that trend has continued at least into the first month of this year despite the omicron strain of COVID-19 rekindling the pandemic.
Image source: Getty Images.
This renewed momentum, however, hasn't helped the stock hold onto its value. Shares are down 18% from their early February highs and more than 22% below November's peak, currently trading where they were in the first half of last year. Given that the company's -- and the gambling industry's -- recovery is still in full swing though, it's a compelling prospect.
Estee Lauder
Finally, add The Estee Lauder Companies (EL 0.42%) to your list of no-brainer stocks to buy now.
On the off chance you're not familiar with it, Estee Lauder is a cosmetics company. Beauty, skincare, and fragrance are all part of its repertoire, and while Estee Lauder is its flagship brand, Tom Ford, La Mer, Smashbox, and fragrances from Tommy Hilfiger and Michael Kors are also some of the brands operating under the Lauder umbrella.
While brand loyalty in the cosmetics business is surprisingly hit and miss (and often more miss than hit), that loyalty isn't uniform. Bigger and better-known players can use that dynamic to their advantage, positioning their products as "top of mind" alternatives when someone's ready to try something else.
To this end, Estee Lauder is one of the best-known names in the business. Estee Lauder's 33 different loyalty programs are also regarded as some the industry's best. As such, retention of customers isn't the same challenge that it might be for competing makeup brands.
This a big part of the reason this year's revenue is expected to roll in more than 15% better than last year's results. Per-share earnings are projected to grow at an even faster clip. And for the record, Estee Lauder has only failed to top its earnings estimates in one quarter over the course of the past three and a half years. That was the first full quarter after the coronavirus pandemic had taken hold in the United States, when everybody was only best-guessing as to the impact it was making on companies' profits.
Given all of this, it's surprising the market has allowed this stock to tumble more than 30% this year.
