3 Best Stocks for an Old Bull
Wring all the gains you can out of an aging bull market with stocks that balance growth and yield.
Companies in sectors that balance growth and yield, such as information technology, industrial and materials firms, are well-positioned to take advantage of current market conditions, say analysts at Bank of America Merrill Lynch. With that in mind, a few stocks to consider:
IT consulting and services firm Cognizant Technology Solutions (CTSH, $72) is ramping up its highly profitable digital business, which helps clients with cloud computing, analytics and cybersecurity. Customer contracts tend to be long-term, leading to steady cash flows and a solid balance sheet.
A strong economy should help FedEx (FDX, $221), which recently extended its ground shipping operation to six days a week, year-round. The company’s recent investments in technology have made the firm’s package sorting more efficient.
Chemicals firm Ashland Global Holdings (ASH, $75) produces solvents and resins, as well as specialty ingredients used in paints and other products. Ashland has boosted sales and profitability this year in the specialty-ingredients business, which accounts for about two-thirds of overall revenue.