Over a month, the index is down 5%. Although this makes shareholders uneasy, it is at times like these that make stock investing worthwhile for the long-haul. If history teaches us anything, it is that market downturns are transient.
At the same time, the real assets and stable business models remain. In turn, value stocks get a discount – presenting opportunities for disciplined investors to buy strong companies at attractive prices. Patience and perspective turn volatility into an advantage if one considers these stocks.
Healthcare Realty Trust
According to the United States Census Bureau, the US population continues to grow older at a consistent rate. By 2020, 16.8% of the population was over 65 compared to just 5% in 1920. This trend marks a significant shift towards growing demand for healthcare services, which require more facilities.
Healthcare Realty Trust Incorporated (NYSE:) is a real estate investment trust (REIT) that services this trend. The company develops, acquires, manages and owns a large portfolio of real estate for outpatient medical facilities. By the end of 2024, Healthcare expanded its portfolio across 35 states with 651 properties, totalling ~38.4 million square feet.
Out of those, the trust invested $11.8 billion in 589 consolidated properties. In the latest February’s filing for FY 2024, this delivered cumulative net income of $374.3 million. Although this is significantly lower than net income of $1 billion in 2023, the company had to deal with bankrupt tenants, Prospect Medical (TASE:) and Steward Health.
However, as a REIT that is required to deliver at least 90% of taxable income to shareholders as dividends, Healthcare’s dividend payout output was actually greater in 2024 than in 2023, at $4.26 billion. From the year prior, the company reduced its total liabilities by ~$2 billion.
At present, Healthcare’s dividend yield is 7.3% at 31 cents per share. Over a year, HR stock is up nearly 20%, effectively moving sideways since late December, delivering 2% YTD performance. Against the current price of $16.78, the average HR price target is $17.63 with the expected top at $20 per WSJ forecasting data.
Given the essential nature of Healthcare Realty Trust’s assets and its REIT-powered dividends, HR is a solid pick for investors seeking stable, long-term growth.
Pfizer
For a while, it was uncertain if Pfizer Inc (NYSE:) would face legal consequences for the rollout of mRNA injections during the pandemic narrative. However, not only was the Texas lawsuit dismissed in December, but this subject wasn’t even a part of the presidential elections.
Moreover, President Trump met with Pfizer executives in early January. Although Trump appointed Robert F. Kennedy, Jr., a purported Big Pharma skeptic, as the Health and Human Services secretary, his “Make America Healthy Again” initiative is not likely to stir the pot.
In the meantime, PFE stock is near one-year lows, presently priced at $25.34 vs the 52-week low of $24.48 per share. Being a provider of a large portfolio of drugs that are in consistent use, PFE exposure is optimal at this low point. In 2024, Pfizer’s revenue increased nearly 7% from 2023, to $63.6 billion.
Per WSJ forecasting, the average PFE price target is $30.39 per share. The bottom estimate of $25 is aligned with the current price level, making PFE an excellent choice for value investors.
Alphabet
Like Pfizer, Alphabet (NASDAQ:) stock nearly dropped to its one-year low, presently priced at $154.64 vs the 52-week low of $148.20 per share. This represents a rare opportunity for a full-system exposure. By that, we mean that Alphabet is a geostrategic asset, as recently covered in our Big Tech coverage.
Although ad revenue is still Alphabet’s core business model, the company has its fingers in every major pie, from cloud infrastructure and AI to hardware, quantum computing and autonomous driving via its subsidiary Waymo.
Given the importance of narrative control for governance to be effective, Alphabet’s stake in all of these pies is likely to only increase. Compared to 2023, the company increased its revenue by nearly 14% in 2024, at $350 billion.
Per WSJ forecasting, the average GOOGL price target is $216.75, significantly above the current price level of $154.64. Even better, the bottom estimate for GOOGL stock at $167 is also above the current price. This makes GOOGL stock a no-brainer at this point in time, alongside being a convenient exposure to its many ventures.
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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
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