3 Unstoppable Stocks That Are Higher Than Before The Market Correction

Over the past six months, the market has fallen sharply thanks to a toxic combination of fears of an impending recession, rising inflation and rising interest rates. Growth stocks and unprofitable companies have been hit especially hard.

However, there are a small handful of companies that have prospered despite the increasingly pessimistic environment. Let’s take a look at three of these unstoppable stocks that have (so far) weathered the market turbulence with ease.

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Sanofi (SNY -0.63%) is a multinational pharmaceutical giant with a market capitalization of more than $135 billion, and its shares are up more than 17% since six months ago. To defeat the market comeback, Sanofi did the same set of activities it does all the time: developing and marketing drugs. In the first quarter alone, it registered three regulatory approvals for a trio of different drugs and also filed regulatory filings for another five projects.

Every new drug or new indication for an already approved drug means more recurring revenue for years to come, and that remains true no matter what’s happening in the global economy. Right now, its multifunctional immune drug, Dupixent, is in the lead; had the most new prescriptions for type 2 inflammatory diseases issued by dermatologists, allergists, and pulmonologists in the first quarter.

Importantly, Sanofi’s financial performance is also quite strong, which certainly helps protect it from a market downturn. Their net income over the last 12 months has grown 87% over the last three years, which is a decent pace, especially given that revenue grew just under 12% in the same period. Revenue totaled $46.8 billion for the last 12 months.

Sanofi is also increasing its research and development (R&D) spending each year to keep up with its competitors and ensure that its portfolio remains full of future revenue opportunities.

2. AstraZeneca

Like Sanofi, AstraZeneca (AZN) 1.05%) it’s a biopharmaceutical giant, except it’s even bigger with a market cap of over $206 billion. AstraZeneca’s secret to outperforming the market in recent months is skyrocketing sales. Total first-quarter revenue soared 60% to $11.4 billion.

Aside from that, the pharmaceutical giant has also secured four new regulatory approvals and submitted three for review, meaning its sales are likely to be even higher for the rest of the year and into next.

AstraZeneca’s late-stage pipeline is one of the strongest in the industry with 16 greenfield drug candidates in Phase 3 clinical trials and more than 120 late-stage development programs. To advance all of those programs, the company spent more than $10.2 billion on R&D in the last 12 months. In addition, its research and development expenses for the last 12 months have increased by about 78% in the last five years. That should help ensure its pace of new regulatory approvals continues at its current pace for the foreseeable future.

Finally, investors will be pleased to learn that AstraZeneca’s dividend is in good shape, having risen 119% over the last five years. Although its forward yield of around 2.1% won’t make anyone rich, it is (so far) attractive enough to convince shareholders to stick around when the market is in trouble.

3. Steris

With its shares up just under 0.4% in the previous six-month period, Steris (ST 1.86%) It’s not headed for the moon relative to the market, but it’s still holding up. Steris sells sterilization solutions to biopharmaceutical companies such as Sanofi and AstraZeneca, and also services hospitals, biomedical laboratories and healthcare providers with the equipment they need to keep their facilities microbial-free.

The key reason this company is doing better than it was before the correction is that it benefits from the passage of time in a very direct way. As the healthcare industry grows, so does the demand for its products and services, as most medical procedures and most biopharmaceutical research require extensive use of sterilization. Over the past decade, his last 12-month income and net income have expanded by 222% and about 77%, respectively. And stock prices have absolutely nothing to do with the need Steris customers have for its products.

Investors should note that this is not a high growth stock. Management estimates that total revenue growth will remain in the mid to high single digit range for the foreseeable future. That means their relatively strong performance during recessions could be matched by relatively weak (but consistent) performance during bull markets or booms.

Simply put, when you’re selling surgical wipes and sterilization cabinets, slow and steady is pretty much the only way to run the race, and that’s fine for safe-haven investors.

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