There are plenty of stocks worthy of consideration right now, particularly in light of this year's sizable sell-off. In some ways, though, the weakness has distinguished the resilient winners from the marginal, vulnerable players -- not every name out there can truly be considered "unstoppable."
With this market backdrop, here's a closer look at three investments that would be at home in almost anyone's portfolio. Not all of them are high-growth companies, but all three of them are built to thrive in any environment.
Sherwin-Williams
You likely know it as a brand of paint and a chain of paint stores, but that's not all The Sherwin-Williams Company (SHW 2.35%) is. The company also manages an industrial coatings business serving industries ranging from automotive to energy to aerospace to packaging and more. Many of its customers need these goods regardless of the economy's condition, and regardless of these goods' cost.
In the meantime, there's always a respectable market for architectural (home and building) paint.
The homebuilding boom between 2011 and early this year coincides with comparably paced revenue growth for this popular paint brand. Indeed, the only quarter in which sales fell year-over-year within the past decade was the second quarter of 2020, when the COVID-19 pandemic shut down all non-essential consumption. Once that dust settled and stores could reopen, people began improving the homes they were suddenly spending so much time in.
Data by YCharts.
It's a testament to just how marketable architectural paint is. Not only is painting one of the most cost-effective ways of making worn-out walls look new again, it's also one of only a handful of DIY projects most homeowners feel confident enough to take on themselves. Underscoring this idea is how well the company held up even in the wake of 2007's subprime mortgage meltdown, which pushed the U.S. economy into a full-blow recession by 2008. Its 2009 revenue slumped 11% from 2008's stagnant top line, but by 2010, the company was on the mend. By 2011, Sherwin-Williams' sales were back into record-breaking territory, up nearly 10% from 2007's peak.
It remains to be seen just how much the current housing headwind might crimp demand for paint. If the company can recover so well from 2008's devastation, though, it should be able to push through whatever's coming this time around. To this end, the analyst community is calling for sales growth next year despite expectations for economic weakness (if not a full-blown recession) with per-share profits projected to soar to the tune of 18%.
Novo Nordisk
Like Sherwin-Williams, Novo Nordisk (NVO +1.23%) will probably never produce jaw-dropping revenue growth. But like Sherwin-Williams, Novo Nordisk can still make consistent forward progress regardless of the economic backdrop.
Simply put, Novo makes drugs to treat type 1 and type 2 diabetes. That's not all it does, to be clear. It's also got cardiovascular disease therapies in its portfolio, and it's addressing obesity, hemophilia, and a handful of other ailments. Diabetes is its breadwinner and focal point, though, accounting for 87% of the company's sales.
NYSE: NVO
Key Data Points
It's also one of the best -- if not the best -- in the business. Novo Nordisk controls nearly one-third of the diabetes market and 44% of the global insulin market. It also controls almost 55% of the GLP-1 market (GLP-1 is a hormone linked to insulin creation as well as weight loss). And the company is either maintaining or growing its share in all three of these markets.
None of these markets are apt to contract anytime soon, either. If anything, they're likely to keep growing, driven by increasingly poor diets and lifestyles that often don't encourage exercise. The International Diabetes Federation estimates the number of people living with the disease worldwide will grow from last year's 537 million to 643 million in 2030 and 783 million by 2045. Perhaps better for Novo (even if worse for society), the North American market -- where the company already generates nearly half of its sales -- will likely lead the world in prevalence of diabetes, as well as obesity.
Walt Disney
Finally, add The Walt Disney Company (DIS 1.74%) to your list of unstoppable investments you can feel good about adding to your portfolio in this bear market.
In-the-know investors are likely aware this just hasn't been Disney's year. The film industry remains relatively disrupted, while the cable television business continues to shrink. Disney's responding with a respectable streaming effort while its theme parks are drawing crowds again. It's a company in transition, however, and the stock's 40% slide over the past twelve months speaks volumes about the market's opinion of this shift.
NYSE: DIS
Key Data Points
Take a step back and look at the bigger picture though. This is Disney, the premier name in entertainment. Given enough time, it will find the new optimal balance between the big screen and the small screen, streaming versus cable, the price of park visits, and the right licensing deals.
Take its relatively young streaming platform Disney+ as an example. Offering an ad-supported version of the product when it was launched in late 2019 was unthinkable at the time. The streaming market's matured dramatically since then, though, prompting the creation of a lower-priced, advertising-supported tier of the service slated for launch in December. In light of how open-minded consumers have become to the occasional TV ad, this new package could rekindle subscriber growth for the otherwise mostly stalled Disney+ service. In the meantime, the media giant continues to tweak its sports-streaming service ESPN+, which could eventually replace the cable version of ESPN once the cable business shrinks below its threshold of viability.
And you're not exactly going out on a limb by jumping into Walt Disney shares here. The current consensus price target among Wall Street analysts stands at $136.75, up over 30% from shares' present price. These same analysts expect next year's revenue growth of more than 11% to drive per-share profits higher by 43%, suggesting the company is easing back into its former, pre-pandemic habits.
