The bull market continues to charge forward, and the major indexes have rallied strongly after last week's brief coronavirus-related selloff.
By all accounts, the economy remains on solid footing, with a strong job market and subsequent high consumer confidence fueling the market's strong upward trend. With so much bullish sentiment in the stock at this time, investors want to keep their money at work, but there are also rising concerns of an overvalued market.
When the market does correct there will be selling across all sectors, but to best protect their money investors need to seek out stocks that have shown recent strength, past earnings growth, and strong expected future growth. These are the best stocks to own in a mature bull market.
Here are a few names that look good at this stage of the bull market.
Alphabet (GOOGL)
Alphabet (GOOGL), the parent company behind search engine giant Google, is currently trading just shy of its all-time high. The company faces very limited competition in the search market, with jut social media leader Facebook (FB) able to pose any serious threat to the company's dominance of search advertising. Alphabet has shown impressive earnings growth of 15% per annum in the last five years and looking ahead analysts forecast the company will continue to grow profits at an annual rate of 10.3%. Technology has been a driving factor in the current bull market, and it will likely continue to drive the market moving forward with leaders in the sector such as Alphabet enjoying additional upside protection as investor sentiment remains strong. The company has already reported its quarterly numbers this earnings cycle, and while revenue fell slightly short of the consensus the company was able to deliver a bottom-line beat which should keep strength in the stock moving forward. GOOGL trades at 23 times future earnings at $1,434.72 with an average price target of $1,520.88.
United Technologies (UTX)
Aerospace and defense contractor United Technologies (UTX) is trading just pennies under its all-time high after a strong upward move over the last 12 months. The company has been growing earnings at an annual rate of 5% over the last five years and looking ahead analysts expect the company's profits to grow at a faster pace of 8.3% per annum over the next five years. The company's valuation remains attractive with a forward P/E of 16.5, which combined with the stock's forecast growth rate suggests there is a lot of value in the stock. Analysts continue to see additional upside in the stock with an average price target of $171.44 versus the stock's current trading price of $154.11.
Visa (V)
While the stock market is not exactly a reflection of the overall market, in the current landscape strong economic conditions, in particular, a strong job market is helping to fuel the market run. Consumer confidence and spending are both high, and Americans are running a record high level of credit card debt. As consumers continue to use their charge cards for shopping and other expenses, Visa (V) has enjoyed strong earnings growth of 22% per annum over the last five years. Looking ahead analysts remain bullish on the company's growth potential and forecast profits to rise an additional 14.8% annually over the next five years. The stock has a slightly high valuation with a P/E of 28, but the valuation will not keep a lid on the stock given the company's strong recent and expected future growth rates. V trades at $201.99 with an average price target of $220.45.
