3 Safer Stocks to Ground Your Portfolio

Given world events and economic tidings, it can be nerve-wracking to be an investor sometimes. You obviously want strong returns, but risk is present and always will be. There are methods to counter this, and today we’re going to be talking about one of them: picking out some stocks that show signs of relative safety.

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And sometimes people think that picking safer stocks means returns won’t be as great, or that you’re missing out on greater gains. However, picking safety stocks doesn’t mean you have to accept average safety stocks. Using our Zen Ratings system, you can find the best of them. On average, A-rated stocks get an average annual return of +32.52%.

Here are three stocks that have a Zen Rating of A and a Component Grade of A for Safety:

1. Halliburton Co (NYSE: HAL)

There is a slight difference between oil companies and oilfield services companies (HAL is one). Oil prices can fluctuate rapidly, but finding new fields and managing the required infrastructure can be more stable. To HAL’s benefit, rigs need maintenance, there will be strong demand for oil for decades to come, and the stock is seeing strong momentum right now (see below). All this while still having an A Component Grade for Safety.

Interestingly, the sector as a whole is in the middle of a comeback, and HAL’s operations in Venezuela may be coming back soon, putting some extra wind in the stock’s sails. Investors will want to keep watching both of these stories.

2. Brinks Co (NYSE: BCO)

There’s a certain poetry to a security company being a safer stock for a portfolio, and BCO not only has that, but also a Component Grade of A for Growth. Specifically providing security services for businesses, mints, banks, and even governments, BCO is a longstanding powerhouse that will see demand in its industry for as long as civilization endures.

Investors will want to see how Brink’s adapts to competition and a changing political climate, whether it maintains signs of growth, and whether the sector remains overlooked.

3. Kennametal Inc (NYSE: KMT)

KMY makes high-performance tooling and metal cutting products to serve multiple high-demand sectors such as aerospace, energy, and transportation. It can be a safer or more stable option to invest in the company that works with the companies in the headlines. And it’s had an incredible run lately, rising +83.79% over the last year.

It also has an excellent all-around set of Component Grades, receiving an A in Safety and a B in all others except Artificial Intelligence. Investors will want to consider how healthy the industries KMT supports are long-term and whether it continues to beat expectations.

These are just three stocks you might want to look at for safety, but they aren’t your only options. WallStreetZen Premium can help you find more great choices. You’ll get access to premium stock ideas pages, an unlimited watchlist, and more. It’s just what you need to stay on top of things.

Yet what if you want a more focused and guided approach to investing? Then Zen Investor is for you. With it, you will receive access to webinars and commentary by our own Steve Reitmeister, who has more than 40 years of investing experience. You’ll also receive access to a model portfolio that can help you guide your own decisions, with stocks hand-picked by Reitmeister using the Zen Rating system and his own experience as guides.

What to Do Next?

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• See All “A” Rated Stocks with +32.52% Average Annual Return >
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