So far, 2023 has been a welcome relief to the relentless selling we went through last year. Yet, as we have noted this week, almost all the gains generated for the S&P 500 and the Nasdaq are from a few mega-cap tech stocks. The tech-heavy Nasdaq is still up a strong 15.28%, while the old-school Dow Jones industrial average is flat year to date. That disparity should be tantalizing for concerned investors.
With more banks failing, and interest rates still rising (the Federal Reserve lifted the federal funds rate on Wednesday to 5.00% to 5.25%, the highest level in 17 years), many investors are getting nervous, and rightfully so. With the bank issues and the debt limit ceiling about to be reached by June, it is time to take profits on the mega-cap winners and move to safer old-school stocks that can survive a downturn in the economy.
We screened the venerable Dow Jones industrials looking for the best values and companies that paid dependable dividends. The following five top stocks hit our screen, and all are rated Buy across Wall Street. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Amgen
This biotech giant remains a safer way to play the massive potential growth in biosimilars. Amgen Inc. (NASDAQ: AMGN) discovers, develops, manufactures and delivers human therapeutics worldwide. It focuses on inflammation, oncology/hematology, bone health, cardiovascular disease, nephrology and neuroscience.
The company’s products include:
- Enbrel to treat plaque psoriasis, rheumatoid arthritis and psoriatic arthritis
- Neulasta reduces the chance of infection due to a low white blood cell count in patients with cancer
- Prolia to treat postmenopausal women with osteoporosis
- Xgeva for skeletal-related events prevention
- Otezla for the treatment of adult patients with plaque psoriasis, psoriatic arthritis and oral ulcers associated with Behcet’s disease
- Aranesp to treat a lower-than-normal number of red blood cells and anemia
- Kyprolis to treat patients with relapsed or refractory multiple myeloma
- Repatha, which reduces the risks of myocardial infarction, stroke and coronary revascularization
Shareholders receive a 3.61% dividend. Goldman Sachs has a $290 target price on Amgen stock. The consensus target is just $256.57, and the stock closed on Thursday at $231.89.
Chevron
This integrated giant is a safer way for investors looking to get positioned in the energy sector, and the shares have backed up nicely. Chevron Corp. (NYSE: CVX) engages in integrated energy and chemicals operations worldwide. The company operates in two segments.
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