5 Safe Stocks to Buy as Uncertainty Over Rate Cuts Continue

Company Overview - PepsiCo has an expected earnings growth rate of 7.1% for the current year, with a Zacks Consensus Estimate for current-year earnings improving by 0.1% over the last 60 days, and currently holds a Zacks Rank 2 [1] - Kimberly-Clark Corporation has an expected earnings growth rate of 6.9% for the current year, with a Zacks Consensus Estimate improving by 2.9% over the last 60 days, and also holds a Zacks Rank 2 [3] - California Water Service Group has an expected earnings growth rate of 246.2% for the current year, with a Zacks Consensus Estimate improving by 40% over the last 60 days, and carries a Zacks Rank 1 [13] - Portland General Electric Company has an expected earnings growth rate of 29.4% for the current year, with a Zacks Consensus Estimate improving by 0.3% over the last 60 days, and holds a Zacks Rank 2 [14] - Atmos Energy has an expected earnings growth rate of 9.2% for the current year, with a Zacks Consensus Estimate improving by 0.9% over the last 60 days, and carries a Zacks Rank 2 [17] Market Conditions - Inflation eased marginally in April, with the consumer price index (CPI) rising by 3.4% year-over-year and 0.3% month-over-month, slightly below the expected 0.4% rise [5] - The Federal Reserve's preferred inflation gauge, the personal consumption expenditure (PCE) index, saw a 0.3% monthly increase in April, consistent with expectations, while core PCE rose by 0.2%, lower than the previous month's increase [6][7] - Manufacturing activity continues to slow, with the Institute for Supply Management's (ISM) manufacturing PMI falling to 48.7% in May, marking its 18th decline in the past 19 months [8] Investment Recommendations - It is advisable to invest in defensive stocks such as utilities and consumer staples, including PepsiCo and Kimberly-Clark, which have favorable Zacks Ranks [9] - The recommended approach is to focus on low-beta stocks with high dividend yields and favorable Zacks Ranks [10]