TIM THOMAS

6 Bear Market Stocks That Must be on Your Watchlist

There’s no official definition of a bear market, but stock market investors and commentators typically say that it is when stock prices are down by at least 20% from recent highs.

Investors can use various strategies in bear markets or markets where stock prices are trending down; the right approach depends on their risk tolerance, investment horizon, and goals.

Covid battered the stock market, and inflation concerns have dampened hopes for a quick recovery from lockdowns.

Increasing geopolitical tensions and macroeconomic risks also drive investors to seek out stocks with bear market potential, and their primary objective is to protect themselves from high inflation and volatility.

If the market enters uncertain times, these are six stocks to purchase which are likely to perform well in a bear market.

On February 8, the logistics giant announced its Q4 2021 results, which was $27.8 billion, and revenues grew 11.5%. Net income increased 91% YOY, and adjusted earnings rose 38%. The diluted earnings per share of $3.59 were up by 35% year over year.

United Parcel Service (UPS)

Rising interest rates, as the Federal Reserve tightens monetary policy, and rising inflation and uncertainty about the Ukraine crisis continue undermining the current stock market’s outlook. However, companies’ ability to use cash could reduce a few concerns of investors.

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A recent 49% dividend increase supports a dividend yield of 3%. Furthermore, revenue growth is forecast at just 4.8% for 2022. In the past year, UPS shares have risen almost 25%. Shares trade at 1.9 times trailing sales and 16.4 times forward earnings. Currently, UPS stock is trading at $249 per share.

March 3 marked Costco’s Q2 FY22 results. Profit crept up 16% YOY to $50.9 billion. The company earned $951 million in net income or $2.92 per diluted share in the prior-year quarter. The company had $11.8 billion in cash and equivalents.

Costco Wholesale (COST)

In the past 12 months, COST stock has gained nearly 61%, and the stock is down around 5% year-to-date. The stock price is trading at 41.5 times forward earnings, and price forecasts are $572.50 over the next 12 months.

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