In all honesty, the global economy is currently on a crazy rollercoaster ride. With the way things are going right now, it seems that stocks are in for an plunge.
Deflation is expected to hit and people are in a wary mood as various sources predict the end of the financial industry. However, what the majority needs to understand is the this is part of the economic cycle. Looking at the market conditions in the past few days will reveal a seemingly bullish market. The Federal Reserve has been intervening by hiking and lowering interest rates accordingly. And this has worked since 2009 up to last year in 2014. This year, however, the tides have changed and it seems that the intervention of the Federal Reserve will not be enough this time around to battle the natural forces of the economy that will pull down the global market.
Do not fret, the market will get back up. As we said, it’s all part of a cycle. Now, what do you have to do to take advantage of this upcoming events? Trade of course. And here are the top two companies that is likely to outperform the S&P 500 according to research.
Johnson & Johnson (JNJ)
In selecting the best stocks there are many things you should consider such as stability, performance, and revenue. However, it is not required for a company to have all of them for them to have your trust. Sometimes just excelling in one category can already show you the future of a stock. One such company is Johnson & Johnson whose revenue and net income surpassed most companies in the market.
Over the past three fiscal years, JNJ has delivered. The revenue it generated in 2012, 2013, and 2014 came to a total of $67.2 billion, $71.3 billion, and $74.3 billion respectively. Meanwhile it’s net income adds up to an impressive $10.8 billion in 2013, $13.8 billion in 2013, and $16.3 billion in 2014. Now, that’s consistency. And to top it all off, it has one of the lowest debt-to-equity ratio at 0.27. Johnson & Johnson is also one of the oldest stock which has already overcome more than 100 years in business. And if it’s one thing you can trust it’s the history of the company to keep afloat and still outperform younger companies in more than a century.
General Mills Inc. (GIS)
As we have mentioned, performance and revenue is not everything. Choosing the right stock to invest into sometimes means researching companies not only for their history but more importantly, for their resilience. General Mills is a company not known for its revenue nor its stellar performance. It is a company that has bore the volatility of the market and is now opening its sails to conquer bigger waters. With the GIS’s nature of business and its wide product diversity the company has, it’s no wonder it is in this list. And now with company has also forging a revolutionary alliance with Amazon Inc. (AMZN) and Wal-Mart Stores Inc. (WMT) for online orders and deliveries, GIS is an almost guarantee for a stable future.
General Mills saw a revenue and profit for the fiscal year of 2013, 2014, and 2015 with little aplomb. For 2013 it generated a revenue of $17.7 billion and a net income of $1.9 billion. In 2014, it created a total revenue of %17.9 billion and earned $1.8 billion as net income. For this year, GIS made $17.6 billion in revenue and $1.2 billion in net income.
There is no guaranteed way of telling how a stock will perform in the next years. The next best thing that traders can do is assess the company and predict its performance through thorough research, taking into consideration all possible factors and the market mood. These companies are mere suggestions and in the end, you must always rely on yourself alone, to make smart decisions. Trade with caution and research further before any investing anywhere.