Will the stock market continue to rebound? Or is another decline on the way soon? The truth is that no one knows the answers to these questions.
It can be challenging for investors to make decisions when volatility is high. No one wants to lose money, but no one wants to miss out on a great opportunity, either. The best approach is to focus on businesses that should be strong regardless of how the overall market performs. Here are three brilliant stocks to buy in an uncertain market.
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1. Easterly Government Properties
You won't find many stocks with a more reliable underlying business than Easterly Government Properties (DEA 1.55%). The real estate investment trust (REIT) specializes in leasing properties to U.S. federal government agencies.
The U.S. government is arguably the most dependable tenant in the world. If the point ever comes where Uncle Sam can't make a monthly payment, we'll have much bigger problems on our hands than deciding where to invest.
Easterly continues to grow. Last year, the company purchased 12 new properties to lease out. Those additions brought its total number of properties owned to 89. Easterly expects to close on at least another six properties by the end of 2023. Its long-term growth prospects continue to look good, also, with tight federal budgets likely to spur the government to lease rather than own properties.
The REIT also offers a dividend that currently yields more than 5.1%. I think that Easterly's business model makes it one of the safest high-yield dividend stocks on the planet.
2. Brookfield Renewable
Some of the market volatility that we're experiencing is due to soaring oil prices. And those sky-high prices have resulted in a spotlight being focused on the renewable energy industry. My view is that Brookfield Renewable (BEP 1.40%) (BEPC 2.46%) stands out as the best renewable energy stock around.
Brookfield Renewable operates hydroelectric, wind, solar, and storage facilities spread across four continents. It boasts over 21,000 megawatts in installed capacity. But that's just a start. The company's development pipeline is nearly three times greater.
Wind and solar power already are more cost-effective than fossil fuel alternatives. Brookfield Renewable's growth doesn't just hinge on cheaper prices, though. The global push to reduce carbon emissions should serve as a multidecade tailwind for the company.
In addition to its strong growth prospects, Brookfield Renewable also has an attractive dividend yield, which currently tops 3%. Brookfield Renewable expects to increase its distribution by 5% to 9% annually over the long term.
3. Pfizer
Pfizer (PFE 1.00%) could have more upside potential than meets the eye. The company's 2022 guidance projects $32 billion in sales for COVID-19 vaccine Comirnaty and $22 billion in sales for COVID-19 pill Paxlovid. Both figures are likely to be higher. I suspect that the actual sales for Paxlovid will be much higher, considering that Pfizer is gearing up to produce 120 million treatment courses.
There's some degree of uncertainty about the sustainability of demand for COVID-19 vaccines and therapies. However, this uncertainty is already baked into Pfizer's share price: Its shares trade at only 7.8 times expected earnings.
Plus, the likelihood that Pfizer will enjoy continued strong sales in the COVID-19 arena appears to be increasing. A new subvariant of the coronavirus omicron variant is causing a surge in COVID-19 cases in China and Europe. The U.S. could be next.
But Pfizer also has other growth drivers in its lineup, including blood thinner Eliquis and rare-disease drug Vyndaqel/Vyndamax. It could have even more on the way. For example, the company recently reported positive results from a late-stage study of etrasimod in treating ulcerative colitis. Pfizer picked up the drug with its recent acquisition of Arena Pharmeceuticals.
