The stock market keeps flirting with bear market territory. That has caused great upheaval in our momentum based POWR Ratings model.

To be more specific, we have seen a 55% reduction in Buy ratings while Sell ratings have more than doubled. That is just a sign of the times.

Long story short, it takes a truly special kind of stock to fight the downward spiral of the market to remain in the Buy camp. So let’s dig in deeper on these 4 resilient stocks to understand what is behind their recent strength and what that means for shares in the days and weeks ahead: DexCom (DXCM), Barrick Gold (GOLD), Kimberly-Clark (KMB) and Seattle Genetics (SGEN).

Seattle Genetics (SGEN)

Being a biotech puts SGEN in the healthcare camp which is typically more of a safe haven industry during troubled times for the market. Yet even within that stoic group they are the #5 rated stock leading to a Peer Grade of A.

SGEN is best known for its experimental breast cancer drug which was a big part of the growth in 2019 that led to a 101% gain for shares. Gladly the strong performance for SGEN is not just isolated to 2019 as it has seen an impressive 173% return the past 5 years. Anyone looking to expand their portfolio to include pharma holdings that aren’t affected by the current epidemic, would do well to include SGEN in their holdings.

Kimberly-Clark (KMB)

KMB is one of the “go to stocks’ every time the market hits the skids. That is because they are a leading consumer staples brand that has a track record of solid earnings even when the economy is suffering.

Now let’s consider the unique circumstances at this time with the rise of the Coronavirus. That is where consumers are going to the store to stock pile staples like toilet paper, napkins, diapers etc to hopefully not have to go back in public anytime soon. So KMB is definitely a winner with the hoarding trend on the rise.

Just for good measure, KMB serves up an above average dividend yield of 3% (about 4X more than the 10 year Treasury rate). This has made it a cornerstone position in many investors portfolio’s for year providing a steady stream of performance. Plus it allows one to sleep at night when things get rocky like now. KMB may not be a sexy stock, but it’s still a Buy for good reason.

Barrick Gold (GOLD)

You know physical gold is pushing multi year highs. But why settle for the modest gains of physical gold when you can rotate to gold miners, like Barrick (GOLD), that typically provide 2-3X better returns? And within this strong group of miners, GOLD is the #2 ranked miner out of 29.

Barrick (GOLD) is currently trading at $18.79, reflecting a return of 2.29% and 43.70% over the past month and year respectively. Truly the rarest of rare stocks is sporting any gains this past month as many are well into 20% bear market territory.

It’s common for market watchers to look at mining stocks like GOLD as love or hate propositions, but in the current environment, more folks are warming up to this industry group. Thus, investors who want to bolster their portfolios beyond holding cash or gold coins and bullion should take a closer look at mining stocks like GOLD at this time.

DexCom (DXCM)

Just like Seattle Genetics above, DXCM is also in the healthcare sector. In this case, it is in the industry of medical devices. The health of that group is why shares have been resilient of late. But the reason that DXCM is up an impressive 15% year to date, is because of their incredible operational strength that was on FULL display in their recent +53% earnings beat. This is actually the 12 straight impressive earnings report for DXCM.

What is driving DexCom’s growth? Unfortunately, more and more people are succumbing to diabetes, even as wellness lifestyles gain popularity. Advancements in glucose monitoring systems continue to enjoy favor from investors and the market as a whole. Revenues continue to rise, and DXCM shows no sign of slowing down, even during the COVID-19 selloff.

That is why shares have been on the rise this year. And that is why Wall Street pros, like Joanne Wuensch of Citigroup, has a street high $330 on shares. Rain or shine DXCM is one that investors should be considering strongly for inclusion in their portfolio.

Want more great stock picks? Then check out these additional resources:

All Upgrades/Downgrades

All POWR Rating A (Strong Buy) Stocks

Reitmeister Total Return portfolio

SGEN shares . Year-to-date, SGEN has declined -8.53%, versus a -14.76% rise in the benchmark S&P 500 index during the same period.

About the Author: Steve Reitmeister

Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...

More Resources for the Stocks in this Article