How to protect yourself from an economic crisis with these 3 stocks


We are going to see 3 examples of investment opportunities in stocks that are characterized by: They are resistant to crises, are good businesses, have low debt and have a good long-term perspective

Walmart

It always behaved very well in previous crises since it sells essential items. A threat going forward could be Amazon and online sales. But Walmart knew how to adapt by launching a very successful online sales store that is growing 30% annually. This is a very mature company that is why it is estimated to have a low, linear and safe growth of 3% per year, this added to the dividend yield gives us an expected annual return of 6 or 7% which seems very good for a conservative profile. We can see a clear bullish support line which has several tests. When the price rests on this line, it could be a good time to buy

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Mastercard

This together with visa, have practically a monopoly with credit cards and they already know that monopolies do well on the stock market. It is a sector that has a good outlook for the future, given that cash payments are in decline and these companies are experiencing significant growth. The crises do not refer to these companies since people continue to use their card to continue making their purchases (we can see this reflected in their sales and profits). During the last 5 years, Mastercard increased its EPS from 3.36 to 7.98 and although it is likely to continue growing, but at a slower pace, we could estimate that in 5 years it will reach an EPS of 14. Historically MA traded at a PER of x35. Multiplying that EPS by the PER we can obtain a target value of 490 USD. Currently having a PER of x48 we could expect a drop to 330 usd in the medium term.

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We can see a clear bullish channel from the pandemic

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O'Reilly

This company is dedicated to selling auto spare parts and also has maintenance workshops. Why can it be crisis resistant and a good choice? In the United States, public transportation is deficient, which is why for most of your car it is essential. Spare parts and maintenance is therefore something essential that cannot be postponed. Also, during crises, people often continue to use their old car rather than buy a new one. Which is great for this company as older cars need more maintenance. Which this will increase the income of this company
O'Reilly has historically traded at a PER of x25 and it is estimated that for next year it will reach an EPS of 22. Which would leave us with a valuation of PER x20 at the current price. It is estimated that for the next 5 years it could reach an EPS of 29. Which gives us a target price of 725 usd

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They are not purchase recommendations, it is just my personal analysis of what can happen. Remember to do your own analysis before making any purchase

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