3 Extremely Safe Stocks to Pick up in 2023

NYSE: JNJ | Johnson & Johnson News, Ratings, and Charts

JNJ – Recession possibilities persist as the Fed continues to fight the stubbornly high inflation. Given the uncertainties, investors could consider adding extremely safe stocks Johnson & Johnson (JNJ), The Descartes Systems (DSGX), and Weis Markets (WMK) to their portfolios this year. Keep reading…

With stock market volatility rife amid the concerns that persistently high inflation and the Fed’s rate hikes will lead to a recession, investors should check out these extremely safe stocks, Johnson & Johnson (JNJ), The Descartes Systems Group Inc. (DSGX), and Weis Markets, Inc. (WMK).

The job market has remained strong despite the Fed’s efforts to loosen it. A tight labor market and inflation above the Fed’s target of 2% are strengthening the case for continued rate hikes ahead. The Fed still has a long way to go in the fight against inflation.

According to TD Securities strategist Priya Misra, “I think the Fed has no choice but to engineer a hard landing. I think the Fed is going to feel that pressure to continue to hike.”

However, according to a survey of economists, a recession is likely to begin later in 2023 than initially expected.

I think JNJ, DSGX, and WMK can help navigate such market uncertainties.

Johnson & Johnson (JNJ)

JNJ and its subsidiaries research, develop, manufacture, and sell various products in the healthcare field worldwide. The company operates through three segments: Consumer Health; Pharmaceutical; and Medical Devices.

JNJ’s forward non-GAAP P/E multiple of 14.65 is 27.7% lower than the industry average of 20.28.

JNJ has paid dividends for 60 consecutive years. Over the last three years, JNJ’s dividend payouts have grown at 6% CAGR. While JNJ’s four-year average dividend yield is 2.60%, its current dividend translates to a 2.93% yield.

JNJ’s gross profit margin of 67.36% is 21.4% higher than the 55.50% industry average, while its EBITDA margin of 34.46% is 867.3% higher than the industry average of 3.56%.

JNJ’s consumer health segment revenue came in at $3.77 billion for the fiscal year 2022 fourth quarter, up marginally year-over-year. Moreover, its adjusted net earnings came in at $6.22 billion, representing a 9.5% year-over-year increase. Its EPS increased 10.3% year-over-year to $2.35.

JNJ’s revenue is expected to increase by 3% year-over-year to $97.83 billion in 2023. Its EPS is expected to grow 3.5% year-over-year to $10.51 in 2023. It surpassed EPS estimates in all four trailing quarters. JNJ’s shares have gained marginally intraday to close the last trading session at $155.56. Its 60-month beta is 0.54.

JNJ’s POWR Ratings reflect this promising outlook. The stock has an overall rating of A, equating to a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

JNJ has an A grade for Stability and a B for Value, Sentiment, and Quality. Within the Medical – Pharmaceuticals industry, it is ranked #5 out of 167 stocks. Click here for the additional POWR Ratings for Growth and Momentum for JNJ.

The Descartes Systems Group Inc. (DSGX)

Headquartered in Waterloo, Canada, DSGX provides cloud-based logistics and supply chain management and business process solutions that enhance the productivity, performance, and security of logistics-intensive businesses worldwide. Its Logistics Technology platform offers a range of modular, cloud-based, and interoperable web and wireless logistics management applications.

On February 22, 2023, DSGX announced that SEL Supply Chain Solutions (SELSCS) of Fort Worth, Texas, is adopting Descartes to digitize its freight brokerage business. SELSCS is leveraging the cloud-based Descartes AljexTM transportation management system (TMS), seamlessly connected with Descartes MacroPointTM for real-time freight visibility, load tracking, and automated capacity sourcing.

Also, DSGX announced the acquisition of GroundCloud, a cloud-based provider of final-mile carrier solutions and road safety compliance technologies. These new collaborations should boost its capabilities.

DSGX’s trailing-12-month gross profit margin of 76.68% is 55.9% higher than the 49.19% industry average. Its trailing-12-month EBIT margin of 27.96% is 375.5% higher than the 5.88% industry average.

DSGX’s revenues increased 14.4% year-over-year to $486.01 million for the fourth quarter that ended January 31, 2023. Also, its gross margin came in at $372.69 million, up 15.4% year-over-year. Its net profit came in at $102.24 million, up 18.5% year-over-year. Moreover, its EPS came in at $1.18, representing an 18% year-over-year rise.

The consensus revenue estimate of $550.10 million for the fiscal year 2024 indicates a 13.2% increase year-over-year. Its EPS is expected to grow 18.6% year-over-year to $1.4 in 2024. It surpassed EPS estimates in three of four trailing quarters. Over the past nine months, the stock has gained 22.1% to close the last trading session at $76.30. Its 60-month beta is 0.89.

DSGX’s POWR Ratings reflect this promising outlook. The stock has an overall B rating, equating to a Buy in our proprietary rating system. It has an A grade for Stability and Sentiment and a B for Quality. It is ranked #3 out of 24 stocks in the Software – SAAS industry.

Beyond what is stated above, we’ve also rated DSGX for Growth, Value, and Momentum. Get all DSGX ratings here.

Weis Markets, Inc. (WMK)

WMK is a food retailer that engages in the retail sale of food through a chain of supermarkets. The company operates primarily under the Weis Markets name and Weis, Weis Great Meals Start Here, Weis Gas-n-Go, and Weis Nutri-Facts brands.

In terms of trailing-12-month EV/Sales, WMK is currently trading at 0.43x, 76.4% lower than the industry average of 1.80x. Its trailing-12-month EV/EBITDA of 7.65x is 43.9% lower than the industry average of 13.63x.

WMK has paid dividends for 33 consecutive years. Over the last three years, WMK’s dividend payouts have grown at 2.1% CAGR. While WMK’s four-year average dividend yield is 1.36%, its current dividend translates to a 1.70% yield.

WMK’s trailing-12-month ROTA of 6.39% is 67.4% higher than the 3.82% industry average. Its trailing-12-month asset turnover ratio of 2.43% is 194.1% higher than the 0.83% industry average.

WMK’s revenues increased 18% year-over-year to $1.31 billion for the fourth quarter that ended January 31, 2023. Also, its income from operations came in at $33.58 million, up 10.6% year-over-year. Its net profit and EPS came in at $28.88 million and $1.07, up 27.7% and 27.4% year-over-year.

The stock has gained 20.8% over the past year to close the last trading session at $81.72. Its 60-month beta is 0.33.

It’s no surprise that WMK has an overall A rating which equates to a Strong Buy in our POWR Ratings system.

It has an A grade for Stability and a B for Growth and Quality. The stock is ranked #5 out of 38 stocks in the A-rated Grocery/Big Box Retailers industry. We’ve also rated WMK for Value, Sentiment, and Momentum. Get all WMK ratings here.

Consider This Before Placing Your Next Trade…

We are still in the midst of a bear market.

Yes, some special stocks may go up. But most will tumble as the bear market claws ever lower.

That is why you need to discover the brand new “Stock Trading Plan for 2023” created by 40-year investment veteran Steve Reitmeister. There he explains:

  • Why it’s still a bear market
  • How low stocks will go
  • 9 simple trades to profit on the way down
  • Bonus: 2 trades with 100%+ upside when the bull market returns

You owe it to yourself to watch this timely presentation before placing your next trade.

Stock Trading Plan for 2023 > 


JNJ shares . Year-to-date, JNJ has declined -11.31%, versus a 5.76% rise in the benchmark S&P 500 index during the same period.


About the Author: Rashmi Kumari


Rashmi is passionate about capital markets, wealth management, and financial regulatory issues, which led her to pursue a career as an investment analyst. With a master's degree in commerce, she aspires to make complex financial matters understandable for individual investors and help them make appropriate investment decisions. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
JNJGet RatingGet RatingGet Rating
DSGXGet RatingGet RatingGet Rating
WMKGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Updated 2024 Stock Market Outlook

The bull market continues to rage on with the S&P 500 (SPY) making new highs. That is the past...the question is what does the future hold? That is why 44 year investment veteran Steve Reitmeister provides this updated 2024 Stock Market Outlook to help you carve a path to outperformance the rest of the year. Read on below for the full story...

3 Energy Stocks Set to Soar Beyond Expectations

Given the geopolitical tensions, increasing global oil demand, and supply adjustments, the energy sector is poised for robust growth. Therefore, investors might consider investing in energy stocks TechnipFMC (FTI), Weatherford International (WFRD), and ChampionX (CHX), which are poised to exceed expectations. Keep reading…

Has Carnival (CCL) Stock Turned Into a Buy After Earnings Release?

Carnival Corporation (CCL) reported record revenue in its most recent quarter but still faces a negative bottom line. The collapse of Francis Scott Key Bridge brings more uncertainty to its financials. Given these events, what stance should one take with CCL stock? Read more to find out…

3 China Stocks Positioned for Long-Term Growth

Despite facing challenges, the Chinese economy has demonstrated resilience, as evidenced by recent robust industrial output and retail sales data. Given this outlook, it might be an opportune time to own three top-notch China stocks, JD.com, Inc. (JD), China Automotive Systems (CAAS), and Youdao, Inc. (DAO). Read on…

Investor Alert: “Buy the Rumor, Sell the News!”

Everyone knows that the Fed is going to cut rates at some point this year. That is the worst kept secret on the planet helping to explain how we keep making new highs for the for the S&P 500 (SPY). Unfortunately that creates an interesting predicament for stocks after rates are cut. Plus another hurdle in the 2024 Presidential election. Steve Reitmeister is here to share his insights on the market outlook along with a preview of his top 12 stocks to outperform. Read on for more...

Read More Stories

More Johnson & Johnson (JNJ) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All JNJ News