Exploring Resilient Defensive Stocks Amid Rising Volatility

Signs of Market Correction

As US equities tiptoe towards an anticipated correction, the volatility index has surged 10% in recent sessions, hinting at potential turbulence ahead. While we brace for a modest pullback, astute investors are eyeing this as an auspicious opportunity amid the prevailing bull market.

Haven in Defensive Stocks

In the midst of market tremors, select defensive stocks are emerging as beacons of stability. Three stocks with stellar Zacks Ranks are demonstrating robustness in the face of broader market weakness. The Nasdaq 100 index is exhibiting signs of a breakdown, possibly converging towards previous highs.

Marathon Petroleum: Fueling Growth

Amidst the clamor, Marathon Petroleum (MPC) shines as a standout performer, with its shares scaling an impressive 40% year-to-date. With a decade-long track record outpacing the market, Marathon Petroleum is a juggernaut in the integrated energy sector.

Kroger Co.: Retail Resilience

Another beacon of strength, The Kroger Co. (KR), has displayed remarkable fortitude in the face of market gyrations. By outstripping earnings estimates, Kroger has not only weathered storms but powered ahead, showcasing resilience amidst market fluctuations.

Unveiling the Fortunes of Murphy USA Inc. Unveiling the Fortunes of Murphy USA Inc.
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Riding the Bullish Wave

Murphy USA, drenched in the vastness of a strong bullish trend in crude oil, emerges as a compelling energy player. With its Zacks Rank #1 (Strong Buy) status, the company shines like a beacon in the tumultuous waters of the stock market.

A Fueling Giant

Front and center in the landscape, Murphy USA stands tall as a leading retail fueling company in the US. Nestled near Walmart stores, its chain of convenience stores and gas stations offers a plethora of fuel options including gasoline and diesel. It beckons customers with a fusion of fueling needs and convenient in-store services that dance harmoniously with the rhythm of modern life.

The Strategic Dance of Growth

Murphy USA’s strategic moves speak volumes of its prowess. Over the past decade, the stock has boomed at an annual pace of 26.4%, a meteoric rise that has dazzled investors and left competitors in the dust. Gliding smoothly on its retail-only model, the company showcases a resilience that shatters the volatility plaguing its industry counterparts, painting a picture of stability in an ever-changing market canvas.

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Financial Symphony

Like a maestro conducting a grand symphony, Murphy USA orchestrates a rhapsody of shareholder value. The company’s tireless buyback of its own shares, slashing them by more than half in a decade, harmonizes perfectly with its dividend growth from $0.25 to $1.55 per share, a sweet melody that resonates with investors far and wide.

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Looking Towards the Horizon

Peering into the future, Murphy USA’s trajectory seems bound for the stars. With a string of earnings estimates upgrades painting a vivid canvas of success, the company dares to dream of year-over-year earnings growth in the face of industry-wide challenges. Projections for FY24 hint at a 3.3% rise, followed by a captivating 6.2% surge in FY25, a tale of growth that rivals the grandeur of ancient myths.

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The Grand Finale

For investors seeking a safe haven in stormy seas, these three stocks, including the illustrious Murphy USA, offer a sanctuary worth exploring. Beyond the immediate bullish winds, they stand as steadfast pillars, embodying strength and longevity in the unpredictable world of finance.

Zacks Investment Research – your trusted guide in the labyrinth of stock markets.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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