Companies in sectors that balance growth and yield, such as information technology, industrial and materials firms, are well-positioned to take advantage of current market conditions, say analysts at Bank of America Merrill Lynch. With that in mind, a few stocks to consider:
Kiplinger's Best List, 2018
- Best Actively Managed Vanguard Funds
- 3 Best Stocks for an Old Bull
- 5 Best Moves for Your Portfolio
- The Best Rewards Credit Cards, 2018
- The Best Bank for You, 2018
- Best Money Software and Web Sites
- Best Phone Plans for Every Type of User
- Best Services for Online Security
IT consulting and services firm Cognizant Technology Solutions (CTSH, $72) is ramping up its highly profitable digital business, which helps clients with cloud computing, analytics and cybersecurity. Customer contracts tend to be long-term, leading to steady cash flows and a solid balance sheet.
A strong economy should help FedEx (FDX, $221), which recently extended its ground shipping operation to six days a week, year-round. The company's recent investments in technology have made the firm's package sorting more efficient.
Chemicals firm Ashland Global Holdings (ASH, $75) produces solvents and resins, as well as specialty ingredients used in paints and other products. Ashland has boosted sales and profitability this year in the specialty-ingredients business, which accounts for about two-thirds of overall revenue.
- Test Your Bull Market IQ
- 10 Best Stocks of the Bull Market
- 7 Stocks to Buy In Case This Bull Market Stalls
Copyright 2018 The Kiplinger Washington Editors