In a bull market, investors can buy just about any stock and make money. While it’s tougher in a bear market, there are several stocks that can hold their own and even gain. That’s true of every bear market. 28 of the 30 Dow stocks dropped in 2008, but 2 of them managed to move higher.
In this current market, with rising interest rates and a slow economy, it’s no surprise investors are turning to defensive stocks once again.
One defensive stock – which closed higher in 2008 – was Walmart (WMT). The retailer is likely best-positioned for a slowdown in retail spending going into 2023. Shares are up about 2 percent so far in 2022.
Meanwhile, the stock goes for 22 times earnings. That’s a bit pricey, but lower than over 40 times earnings last year amid the peak of the bull market. And revenue is up nearly 9 percent in the past year, a level higher than inflation.
Action to take: Long-term investors may want to consider shares here, and to buy in any bear market in general. The stock is a dividend grower, although the starting yield is a bit low right now at 1.6 percent.
For traders, a moderate move higher looks likely in 2023. The September 2023 $160 calls, last going for about $6.00, offer mid-double-digit returns even if the stock only moves slightly higher in the coming year. Traders can look for a quick move higher in the stock to take profits.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.