2 Safer Stocks Amid Market Turmoil

So the news this week about Iran and shipping lanes has been a little up in the air. This has made the markets more volatile across many industries. While the recent ceasefire has put a pause on things, we don’t know what will happen next. 

This heightened uncertainty might lead some people to take more risks and see what gains they can accomplish, but it signals a call to safety for many others. Every person will find their own approach that’s right for them, but for today, let’s look at the safer side of things. So, which stocks are safer than others, and which safer stocks are better in general? We have the Zen Ratings system and Component Grades system (which measures safety) to help with that.

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Note that stocks with a Zen Rating of A are among the top 5% of stocks we cover, with an average annual return of +32.52%. With that in mind, here are two A-rated stocks that not only have Component Grades of A for safety, but are also in the A-rated Specialty Industrial Machinery sector:

1. Park Ohio Holdings Corp (NASDAQ: PKOH)

PKOH is a longstanding company (founded in 1907) that provides services and support to manufacturers, including supply chain management outsourcing, capital equipment, and other diversified manufacturing. It also specifically produces assembly components and some manufacturing systems for other companies. If there’s demand for basic industry (and there almost always will be), then PKOH will have some demand for its services.

One interesting thing here is that while it’s a safer company, there is still a value and growth proposition to be found here, looking at its Component Grades (see below). Investors will want to watch industrial trends over the next few months, how the momentum continues for PKOH, and look into PKOH’s long-term plans and setup.

Also worth noting? Despite being a “safer” stock, PKOH is far from boring. Looking at analyst forecasts, the stock currently earns a Strong Buy rating from Steve Barger of KeyBanc — a top 3% analyst based on historical stock-picking performance — who maintains a price target that suggests nearly 50% upside in the coming year. 

2. Gates Industrial Corp PLC (NYSE: GTES)

Mainly producing power transmission and fluid power products, and another longstanding company (founded in 1922), GTES serves many sectors (many of which are themselves absolutely vital). This gives it a relatively stable position in the economy, and this fact doesn’t seem likely to change anytime soon. And while even industrial markets are being affected by ongoing events, we’re considering the long-term outlook here when looking at what to suggest looking at for your portfolio.

Reviewing its component grades, you’ll find that there’s actually more to GTES than being a safe stock. In a different entry, we could easily have picked out GTES as a value pick. It also has solid financials backing up its safety rating, and a Sentiment and AI Component Grade of B. This means that not only are key investors and company insiders showing confidence in the stock, but our AI algorithm has also identified patterns indicating better results.

Like the previous pick, GTES also has high upside potential. Right now, the average forecast calls for 15% upside in the coming year, while the max forecast projects over 30% upside in the coming year. And these aren’t randos — that street-high forecast comes from Andy Kaplowitz of Citigroup, a top 1% ranked analyst. 

Do you want more information on the above stocks and more? Then you’ll love WallStreetZen Premium. It gives you everything you need to keep track of key stocks and monitor your portfolio, including all the fundamental information you need, premium stock ideas pages, and an unlimited watchlist.

Looking for a more guided approach to finding good stocks for your portfolio and understanding current market conditions? Then Zen Investor is right for you. With it, you’ll gain access to regular webinars and commentary from our own Steve Reitmeister, who has more than 40 years of investing experience and has seen his share of volatile markets and world events. You’ll also gain access to a model portfolio using his experience in conjunction with the Zen Ratings system.

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