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8 Stocks to Buy and Hold Despite Market Selloff in 2019

8 Stocks to Buy and Hold Despite Market SelloffPosted on Friday, December 28th, 2018 by Chris Markoch

2018 will be a year that investors will remember for its volatility. In the last week of the year alone the market has been on a roller coaster ride that has seen all the major exchanges record triple-digit and even quadruple-digit highs and/or lows. The markets can digest a lot of economic uncertainty such as the direction and pace of interest rate changes, or how companies will perform with revenue and earnings growth expected to modify from their torrid pace of 2018. They can even weather the uncertainty involving the now almost 12-month long trade war with China (there’s got to be some kind of resolution, right?).

But the market doesn’t like political uncertainty – and after brushing off an anti-climactic mid-term election season, the market is looking at a government shutdown as the ball drops on 2018. Now, a government shutdown in and of itself isn’t necessarily a bad thing. And we all know there will be a resolution, maybe even before you’re reading this. But it goes to show that the market doesn’t know what it doesn’t know, and that can make sitting on the sidelines with cash a bit more attractive.

Still, whether you believe this selloff is just a correction or that we’ve entered a bear market, there are always stocks you can buy that will help your portfolio weather any kind of economic turbulence. These stocks are either designed for tough times or are on the forefront of capturing consumers' minds and dollars. We've picked eight stocks that you should consider for your portfolio as we enter 2019.

#1 - Amazon (NASDAQ:AMZN)

Amazon.com logo

Amazon (NASDAQ: AMZN) - Forget about the fact that Amazon's stock has suffered some of the worst losses since this correction began in October. Forget the noise about interest rates and inflation affecting consumer confidence. And pay little attention to the announcement that the company had its worst quarter since 2008. Look out your window. I don't know about you, but I see delivery trucks stopping at houses every day delivering packages from Amazon. Every. Single. Day.  The word "disruptive" is thrown around (and misused) a lot in business, but Amazon is defining disruptive every day. It has re-invented what an entire generation thinks of as a retail business, moving it from the mall to their phone. That is a disruption. And that is why anything negative you hear about this stock right now is just noise. And millennials aren't just Amazon customers, they're investors. It has survived major market events before and come back stronger. There is nothing to indicate that this time will be any different. 

About Amazon.com
Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS) segments. It sells merchandise and content purchased for resale from third-party sellers through physical stores and online stores. The company also manufactures and sells electronic devices, including Kindle e-readers, Fire tablets, Fire TVs, and Echo devices; provides Kindle Direct Publishing, an online service that allows independent authors and publishers to make their books available in the Kindle Store; and develops and produces media content. In addition, it offers programs that enable sellers to sell their products on its Websites, as well as their own branded Websites; and programs that allow authors, musicians, filmmakers, skill and app developers, and others to publish and sell content. Further, the company provides compute, storage, database, and other AWS services, as well as compute, storage, database offerings, fulfillment, publishing, digital content subscriptions, advertising, and co-branded credit card agreement services. Additionally, it offers Amazon Prime, a membership program, which provides free shipping of various items; access to streaming of movies and TV episodes; and other services. It serves consumers, sellers, developers, enterprises, and content creators. Amazon.com, Inc. has a strategic partnership with Volkswagen AG. The company was founded in 1994 and is headquartered in Seattle, Washington.

Current Price: $1,760.33
Consensus Rating: Buy
Ratings Breakdown: 41 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $2,192.08 (24.5% Upside)

#2 - Ollie’s Bargain Outlet Holdings (NASDAQ:OLLI)


Ollie’s Bargain Outlet Holdings (NASDAQ: OLLI) - Ollie’s has a similar story that is familiar to many companies in the fourth quarter of 2018. They reported better-than-anticipated earnings with 19.1% year-over-year sales growth and adjusted earnings per share that showed year-over-year growth of over 45%. But in late 2018, the phrase isn’t what have you done for me lately, it’s what do you expect to do tomorrow. And the company’s outlook came in at the lower end of what analysts had expected. That wasn’t enough for investors. Even after the report was released, the stock was punished on December 6 as shares lost 17.6% of their value. To be fair, share prices had increased by 80% at their high point this fall with a price-to-sales ratio of 5.5 and a P/E ratio above 40. A bit of profit taking may have been in order. Investors may be wondering whether now is the time to buy. There are reasons to support that decision. The company says that the company is currently only operating at one-third of the level of stores they believe they can operate in the United States. Plus, consumers started fleeing to discount stores during the last recession and have shown no signs of being weaned away. This should create a viable market for OLLI, particularly if the economy does dip into recession. While this stock may not be for the risk-averse, it has the potential for growth-minded investors. 

About Ollie's Bargain Outlet
Ollie's Bargain Outlet Holdings, Inc. operates as a retailer of brand name merchandise. The company offers food products, housewares, books and stationery, bed and bath products, health and beauty products, floor coverings, electronics, and toys; and other products, including hardware, personal health care, candy, clothing, sporting, pet and lawn, and garden products. It provides its products primarily under the Ollie's, Ollie's Bargain Outlet, Good Stuff Cheap, Ollie's Army, Real Brands Real Cheap!, Real Brands! Real Bargains, Sarasota Breeze, Steelton Tools, American Way, and Commonwealth Classics names. As of March 26, 2019, it operated 315 stores in 23 states in the eastern half of the United States. The company was formerly known as Bargain Holdings, Inc. and changed its name to Ollie's Bargain Outlet Holdings, Inc. in March 2015. Ollie's Bargain Outlet Holdings, Inc. was founded in 1982 and is headquartered in Harrisburg, Pennsylvania.

Current Price: $69.98
Consensus Rating: Buy
Ratings Breakdown: 8 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $80.36 (14.8% Upside)

#3 - Canopy Growth (NYSE:CGC)

Canopy Growth logo

Canopy Growth (NYSE: CGC) -Depending on where you stand on the idea of legalizing marijuana, you might think we’re smoking something to include a cannabis company on a list of stocks to buy in 2019. Canopy’s stock is down from its peak price by over 40%. What is more concerning is that it failed to sustain a rally even after favorable results from the November mid-term elections that saw Michigan become the 10th state to legalize recreational marijuana. This is in addition to the fact that nearly two-thirds of the United States have legalized some form of medicinal marijuana. The problem for Canopy is the optics. No administration wants to be seen as coming out in favor of legalized marijuana. But with some estimates saying 62% of Americans now support legalizing recreational marijuana, opinions may be changing. The opportunity for Canopy is that investors vote with their dollars. And according to Beau Whitney, vice president, and senior economist at New Frontier Data, investors injected $10 billion into cannabis stocks in North America in 2018. For perspective, that's two times what was invested in these stocks in the last three years combined.  And that number is expected to increase to over $16 billion in 2019. Another solid trend for CGC is that a good percentage of these investment dollars are coming from millennials who are much more likely to be open-minded about the use of recreational marijuana. For many investors, the stock may seem too risky to own, but this seems like a case of a stock that has too much upside not to own.  

About Canopy Growth
Canopy Growth Corporation, together with its subsidiaries, engages in growing, possession, and sale of medical cannabis in Canada. Its products include dried flowers, oils and concentrates, softgel capsules, and hemps. The company offers its products under the Tweed, Black Label, Spectrum Cannabis, DNA Genetics, Leafs By Snoop, CraftGrow, and Foria brand names. It also offers its products through Tweed Main Street, a single online platform that enables registered patients to purchase medicinal cannabis from various producers across various brands. Canopy Growth Corporation has a clinical research partnership with NEEKA Health Canada to investigate the efficacy of cannabinoids for the treatment of post-concussion neurological diseases in former NHL players; and partnership with Parent Action on Drugs. The company was formerly known as Tweed Marijuana Inc. and changed its name to Canopy Growth Corporation in September 2015. Canopy Growth Corporation is headquartered in Smiths Falls, Canada.

Current Price: $21.13
Consensus Rating: Hold
Ratings Breakdown: 9 Buy Ratings, 10 Hold Ratings, 1 Sell Ratings.
Consensus Price Target: $40.99 (94.0% Upside)

#4 - Johnson & Johnson (NYSE:JNJ)

Johnson & Johnson logo

Johnson & Johnson (NYSE: JNJ) - JNJ has had a bad month of December. Just a week before Christmas, news broke that the company had not disclosed the alleged presence of asbestos in its signature baby powders. The stock plummeted 10 percent in one day, stripping $40 billion off the market value of the blue-chip stock. The company announced a $5 billion share buyback program to help stop the decline. That's the bad news. The good news for the company is that while the news announcement is recent, JNJ has been dealing with these lawsuits for years. They've won some and in other juries have failed to reach a verdict. If this stays contained to a public relations problem, the company will come out just fine. Johnson & Johnson is a solid defensive stock that continues to issue regular dividends. Zacks Investment Research is forecasting the company to report an 11.8% earnings growth for 2018 which will outpace the industry average of 9.3%. Furthermore, many analysts are seeing future litigation risks as being baked into the current valuation. Barring any more bad news, the stock is probably at or near the bottom, which may make it an attractive time to jump in. 

About Johnson & Johnson
Johnson & Johnson, together with its subsidiaries, researches and develops, manufactures, and sells various products in the health care field worldwide. It operates in three segments: Consumer, Pharmaceutical, and Medical Devices. The Consumer segment offers baby care products under the JOHNSON'S brand; oral care products under the LISTERINE brand; beauty products under the AVEENO, CLEAN & CLEAR, DABAO, JOHNSON'S Adult, LE PETITE MARSEILLAIS, NEUTROGENA, and OGX brands; over-the-counter medicines, including acetaminophen products under the TYLENOL brand; cold, flu, and allergy products under the SUDAFED brand; allergy products under the BENADRYL and ZYRTEC brands; ibuprofen products under the MOTRIN IB brand; and acid reflux products under the PEPCID brand. This segment also provides women's health products, such as sanitary pads and tampons under the STAYFREE, CAREFREE, and o.b. brands; wound care products comprising adhesive bandages under the BAND-AID brand; and first aid products under the NEOSPORIN brand. The Pharmaceutical segment offers products in various therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, pulmonary hypertension, and cardiovascular and metabolic diseases. The Medical Devices segment provides orthopedic products; general surgery, biosurgical, endomechanical, and energy products; electrophysiology products to treat cardiovascular diseases; sterilization and disinfection products to reduce surgical infection; diabetes care products; and vision care products, such as disposable contact lenses and ophthalmic products related to cataract and laser refractive surgery. The company markets its products to general public, and retail outlets and distributors, as well as distributes directly to wholesalers, hospitals, and health care professionals for prescription use. It has research and collaboration alliance with Morphic Therapeutic. The company was incorporated in 1887 and is based in New Brunswick, New Jersey.

Current Price: $141.34
Consensus Rating: Buy
Ratings Breakdown: 8 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $153.27 (8.4% Upside)

#5 - AT&T (NYSE:T)

AT&T logo

AT&T (NYSE: T) - The future is 5G, and while AT&T’s competitor Verizon is getting credit for being first to market, AT&T may be the company that will wind up being the leader in the long run. The question is one of implementation, and AT&T is pledging to use standards-based equipment as they roll out 5G in a methodical way in key markets. It's a measure twice, cut once approach that will allow the technology time to catch up to the marketplace (currently many mobile phones lack the proper receptors). AT&T still faces some concerns about its debt load after its acquisition of DirecTV and Time Warner, which also has made some analysts wonder if its growth is really in wireless or if it's looking to rely on growth through acquisition. Still, the stock has higher earnings and free cash flow than Verizon and that shows up in the size of their dividend yield which is an impressive 7.1% as of this writing. In uncertain times, investors should be looking for stocks that are built for the long haul. With a solid, albeit modest valuation and the potential to capture a significant share of the growing 5G market, AT&T fits that profile rather nicely. 

About AT&T
AT&T Inc. provides telecommunication, media, and technology services worldwide. The company operates through four segments: Communications, WarnerMedia, Latin America, and Xandr. The Communications segment provides wireless and wireline telecom, video, and broadband and Internet services; video entertainment services using satellite, IP-based, and streaming options; and audio programming services under the AT&T, Cricket, AT&T PREPAID, and DIRECTV brands to residential and business customers. This segment also sells handsets, wirelessly enabled computers, and wireless data cards manufactured by various suppliers for use with company's voice and data services, as well as various accessories, such as carrying cases and hands-free devices through the company-owned stores, agents, and third-party retail stores. The WarnerMedia segment primarily produces, distributes, and licenses television programming and feature films; distributes home entertainment products in physical and digital formats; and produces and distributes mobile and console games, and consumer products, as well as offers brand licensing services. It also operates cable networks, multichannel premium pay television, and over-the-top services; and digital media properties. The Latin America segment offers video entertainment and audio programming services under the DIRECTV and SKY brands primarily to residential customers; pay-TV services, including HD sports video content; and postpaid and prepaid wireless services under the AT&T and Unefon brands, as well as sells various handsets through company-owned stores, agents, and third-party retail stores. The Xandr segment provides digital advertising services. The company was formerly known as SBC Communications Inc. and changed its name to AT&T Inc. in November 2005. AT&T Inc. was founded in 1983 and is based in Dallas, Texas.

Current Price: $38.35
Consensus Rating: Hold
Ratings Breakdown: 8 Buy Ratings, 8 Hold Ratings, 1 Sell Ratings.
Consensus Price Target: $39.22 (2.3% Upside)

#6 - Celgene (NASDAQ:CELG)

Celgene logo

Celgene (NASDAQ: CELG) - Biotechnology stocks are not for the faint-hearted investor. However, whether you rode Celgene all the way down to its current level, or are looking for a stock that’s likely to rise in 2019, Celgene looks like a good bet. This is a company that churns out an exceptional profit with high margins. Yet somehow it’s been caught up in the correction – which historically hits healthcare, and specifically biotech companies hard. A common critique of the stock is that it relies on its multiple myeloma drug Revlimid for approximately 60% of sales. However, despite noise about generic competitors eating into sales, the company has reached settlements which will make Revlimid the only game in town until January of 2026. That’s a long time for the drug to help CELG continue to deliver profits. But with biotech companies, the story is always about what’s coming down the pipeline. In the case of Celgene, the future looks very promising with reports indicating that the company and its partners are working on what could be first-in-class medicines for cancer, inflammation and immunology compounds. The company continues to stand by its forecast of earnings per share over $12 in 2020 (currently they are at $3.93). Even if that comes in 10% below forecast, it would still be more than double current levels. 

About Celgene
Celgene Corporation, a biopharmaceutical company, discovers, develops, and commercializes therapies for the treatment of cancer and inflammatory diseases worldwide. It offers REVLIMID, an oral immunomodulatory drug for multiple myeloma (MM), myelodysplastic syndromes (MDS), and mantle cell lymphoma; POMALYST/IMNOVID to treat multiple myeloma; OTEZLA, a small-molecule inhibitor of phosphodiesterase 4 for psoriatic arthritis and psoriasis; and ABRAXANE to treat breast, non-small cell lung, pancreatic, and gastric cancers. The company's products also include IDHIFA for the treatment of adult patients with relapsed or refractory acute myeloid leukemia (rrAML) with an isocitrate dehydrogenase-2 mutation; VIDAZA, a pyrimidine nucleoside analog for intermediate-2 and high-risk MDS, chronic myelomonocytic leukemia, and AML; THALOMID to treat patients with MM; and ISTODAX, an epigenetic modifier. Its preclinical and clinical-stage product candidates include small molecules, biologics, and cell therapies for immune-inflammatory diseases, myeloid diseases, epigenetics, protein homeostasis, and immuno-oncology. The company has agreements with BeiGene, Ltd; Acceleron Pharma, Inc.; Agios Pharmaceuticals, Inc.; bluebird bio, Inc.; Lycera Corp.; Juno Therapeutics, Inc.; and EXSCIENTIA LTD. Celgene Corporation was founded in 1980 and is headquartered in Summit, New Jersey.

Current Price: $108.24
Consensus Rating: Hold
Ratings Breakdown: 0 Buy Ratings, 18 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $97.56 (-9.9% Upside)

#7 - Praxair (NYSE:PX)

Praxair logo

Praxair (NYSE: PX) - Why does an industrial company make a list during a correction? Some might question whether an industrial stock should make a list like this in any economy. But Praxair has a competitive advantage – a broad reach that touches the right markets. The company’s core chemical-service business delivers the necessary components for key industries like aerospace, electronics, and healthcare. A case in point is an exclusive long-term agreement the company recently signed to supply oxygen to Fulcrum BioEnergy’s Sierra BioFuels plant. They also serve more traditional sectors like food and beverage. In short, they are a company that is a conduit for companies that tend to thrive no matter the economy.  The stock has been trading in a tight range for the year but is currently offering a fairly attractive dividend yield of just over 3%. The government recently approved a merger that will make the company a wholly-owned subsidiary of Linde PLC. 

About Praxair
Praxair, Inc. produces and distributes industrial gases. It operates through five segments: North America, Europe, South America, Asia, and Surface Technologies. The company offers atmospheric gases, including oxygen, nitrogen, argon, and rare gases; and process gases, such as carbon dioxide, helium, hydrogen, electronic gases, specialty gases, and acetylene. It also supplies wear-resistant and high-temperature corrosion-resistant metallic and ceramic coatings and powders to the aircraft, energy, printing, primary metals, petrochemical, textile, and other industries. In addition, the company offers electric arc, plasma and wire spray, and high-velocity oxy-fuel equipment; and distributes hardgoods and welding equipment purchased from independent manufacturers. It serves various industries, such as healthcare, petroleum refining, manufacturing, food, beverage carbonation, fiber-optics, steel making, aerospace, chemicals, and water treatment. Praxair, Inc. was founded in 1907 and is headquartered in Danbury, Connecticut.

Current Price: $3.23
Consensus Rating: Hold
Ratings Breakdown: 0 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $185.00 (5,627.6% Upside)

#8 - Barrick Gold Corporation (NYSE:ABX)


Barrick Gold Corporation (NYSE: ABX) - Barrick Gold has been on quite a run lately. While many stocks have been crushed by this market selloff, ABX shares have grown, and quite nicely. In October alone, the stock rose 12.5%. When you factor in that it pays a dividend, albeit not a very impressive one at 1% yield, and there is uncertainty surrounding the overall economy, now may be a perfect time to invest in this stock. Of the 22 analysts that cover ABX, 4 have rated it as either BUY or OUTPERFORM, 16 have rated it as a HOLD, and most telling none have rated it as a SELL. While that may not be a ringing endorsement, it does suggest that the market may be open to the right precious metals stocks. Gold historically performs well in times of geopolitical uncertainty. From Europe to the Middle East, not to mention the ongoing trade dispute with China, tensions seem to be rising up. The U.S. government shutdown and the uncertainty regarding the long-term U.S. monetary policy give gold an ideal backdrop for success. Investing in precious metals can be risky, but it can also be an effective hedge for your portfolio while the market struggles to find a clear direction. 


Current Price: $0.00
Consensus Rating: N/A
Ratings Breakdown: 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: N/A

The market correction of 2018 touches every sector of the market. Fear and the desire to seek safety on the sidelines is a natural reaction. But a fundamental truth of the market is that the market does rebound from corrections. Sometimes it takes a while, but the cycle does reverse. And savvy investors know that corrections, and even bear markets, provide ideal opportunities to purchase stocks of great companies at bargain prices.

This time is no different. You have to know where to look. Fortunately, you don’t have to look far. The stocks we’ve included in this report represent some of the top picks from different sectors.

Now is not the time to panic. These companies are just a few of the many attractively priced businesses that represent a buy and hold opportunity as we move into 2019. And as you’re moving into 2019, you should consider becoming a subscriber to MarketBeat All Access which gives you access to our full suite of web-based research tools and proprietary reports for just $39.99 a month.

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