Business & Investment

Three top stocks for volatile markets

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We are in the midst of a very turbulent stock market in December this year.

For the holiday season, we’ve seen stock prices fluctuate sharply as markets try to understand Omicron variants and inflation.

In such an environment, many stocks have been hit hard.

Fast-growing stocks are leading by lowering prices, while value stocks have barely risen, but are largely maintaining their value. It’s natural to be scared in such a situation. But of course this is not the case. As we saw in March 2020, those who have overcome market volatility often return strongly. With that in mind, here are three reliable stocks for today’s turbulent market.

Royal Bank of Canada

Royal Bank of Canada (TSX: RY)(NYSE: RY) Canada’s largest bank. Like most TSX banks, its inventory is very cheap. It is a worthy island floating in the sea of ​​high-value stocks, trading at only 11.4 times the profit. Royal Bank suffered some damage in 2020 when the COVID-19 pandemic led to a significant increase in risk factors. But then banks began to recover and the economy improved. Banks outperformed their earnings in the last quarter, but EPS declined slightly.Revenue despite mistakes 40% increase from the previous year..

RY’s earnings could grow further if the Bank of Canada pushes to raise interest rates next year.

Fortis

Fortis (TSX: FTS)(NYSE: FTS) It is one of Canada’s most reliable dividend stocks. Dividend increased for 47 consecutive years every year. As a utility stock, it enjoys unusually stable income and income. Demand for utilities (heat, light, water) tends to be inelastic because these services are essential. People are better off selling their cars than it gets cold in winter. This phenomenon is well illustrated by Fortis’ 2020 results. That year, the company’s adjusted net income increased slightly, despite the continued global recession.

Fortis is a very reliable company that can expect an increase in dividends.

CN railroad

Canadian National Railway (TSX: CNR)(NYSE: CNI) Is a stock I have held for 3 years and I think I will continue to hold it. As a railroad, it grows naturally with the economy.The railroad is the best A cost-effective way to ship large quantities of goods — Cheaper than trucks and planes, and better suited than boats for transporting goods to inland destinations. For these reasons, railroads are the choice of transportation options for commodities such as grain, coal, and (possibly) oil. Railroads tend to grow with GDP because these commodities are important economic necessities.

However, CNR growth is not limited to economic growth. You can make even more profits by raising interest rates and improving efficiency. It’s definitely a great stock to withstand in turbulent times.

Three top stocks for volatile markets

https://www.fool.ca/2021/12/17/3-top-stocks-for-a-volatile-market/ Three top stocks for volatile markets

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