Core Viewpoint - The article discusses the importance of "Safe Stocks" in long-term investment portfolios, particularly during periods of market volatility and uncertainty, highlighting the current economic climate and the appeal of stable, dividend-paying equities [2][4]. Economic Context - Investors are seeking stability amid concerns over a potential U.S. government shutdown and disappointing labor reports, with gold prices nearing record highs and global markets showing slight gains [2][3]. - The dollar is under pressure, increasing demand for safe-haven assets, while U.S. stocks remain resilient [3]. Characteristics of Safe Stocks - Safe stocks typically belong to companies with stable balance sheets, consistent profitability, and low volatility, which are favored during uncertain times [4]. - Research indicates that low-volatility equities can mitigate losses, making them attractive for conservative portfolios [4]. Methodology for Stock Selection - The list of the 13 Safest Stocks was curated using the Finviz screener, focusing on large-cap stocks with a beta of less than one, a P/E ratio under 25, an ROE above 10%, and a debt-to-equity ratio below 0.6 [7]. - The stocks are ranked based on the number of hedge funds that hold them, reflecting investor confidence [7][8]. Company Highlights - **Diamondback Energy, Inc. (NASDAQ:FANG)**: - Return on Equity: 13.78% - Hedge Fund Holders: 46 - The CEO warned of stagnation in U.S. crude production if oil prices remain around $60 per barrel, and the company reduced its 2025 capital investment by $500 million to $3.5 billion [10][11][12]. - **Baker Hughes Company (NASDAQ:BKR)**: - Return on Equity: 18.36% - Hedge Fund Holders: 47 - Recently announced a contract to provide liquefaction equipment for Sempra Infrastructure's Port Arthur LNG Phase 2 project, enhancing its partnership with Bechtel Energy [14][15][16]. - **EOG Resources, Inc. (NYSE:EOG)**: - Return on Equity: 19.63% - Hedge Fund Holders: 53 - Mizuho reiterated a neutral rating with a $133 price target, expecting EOG to outperform consensus estimates in EBITDAX and cash flow per share [18][19][21].

Core Viewpoint - The current market environment, particularly the Nasdaq Composite's drop of over 10%, has heightened investor fear, prompting a search for safer investment options [1]. Group 1: PepsiCo - PepsiCo is a major player in consumer staples, particularly in salty snacks and beverages, but has faced poor stock performance recently [3]. - For 2024, PepsiCo's organic revenue is projected to grow by 2%, with adjusted earnings expected to rise by 9%. For 2025, management anticipates low single-digit organic growth and mid-single-digit earnings growth [4]. - Despite these challenges, PepsiCo's dividend yield remains historically high at approximately 3.5%, making it an attractive option for investors seeking stability [5]. Group 2: Enterprise Products Partners - Enterprise Products Partners operates in the midstream segment of the energy sector, which is less volatile compared to upstream and downstream segments [6]. - The company generates revenue by charging fees for the use of its infrastructure, making it less sensitive to commodity price fluctuations and maintaining robust demand even during economic downturns [7]. - Enterprise has increased its distribution for 26 consecutive years, has an investment-grade balance sheet, and its distributable income covers its distribution by 1.7 times, with a high yield of 6.4% [8]. Group 3: Black Hills Corporation - Black Hills Corporation is a regulated utility serving 1.35 million customers across several states, focusing on reliability and stability [10]. - The company has achieved Dividend King status due to its consistent dividend growth, with a current yield around 4.5% [10]. - Management targets long-term earnings growth of 4% to 6% annually, making it a low-risk investment option for those seeking stability in turbulent market conditions [11]. Group 4: General Investment Strategy - In light of market volatility, investors are encouraged to consider reliable income stocks like PepsiCo, Enterprise, and Black Hills, which have been undervalued and are gaining attention from Wall Street [13].

Core Viewpoint - In times of market turmoil, owning "safe" stocks and capitalizing on stock price declines presents significant investment opportunities [1][2]. Group 1: Market Context - The Nasdaq experienced a significant rise over the past two years but has recently faced challenges due to tariffs announced by President Trump on imports from major trading partners, raising concerns about corporate earnings and potential recession [2][3]. - The Nasdaq has entered correction territory, falling more than 10% from its recent high on December 16, with a notable drop of 4% on March 10, marking its worst performance since September 2022 [3]. Group 2: Safe Stock Recommendations - **Amazon (AMZN)**: - Amazon is categorized as a "safe" stock due to its large Prime membership base of over 200 million, which may drive consumer spending during economic uncertainty [4]. - The company has improved its cost structure and efficiency in response to rising inflation, positioning it well for future economic downturns [5]. - Amazon Web Services (AWS) has shown resilience, continuing to grow revenue even during inflationary periods, and the stock is currently trading at 30 times forward earnings estimates, down from over 45 times [6][7]. - **Intuitive Surgical (ISRG)**: - As a leader in robotic surgery, Intuitive Surgical benefits from consistent demand for medical procedures, making it a safe investment [8]. - The familiarity of surgeons with the da Vinci platform creates a competitive advantage, as hospitals are likely to continue using the system after significant investment [9]. - Intuitive Surgical continues to innovate, recently launching a new version of the da Vinci with over 150 design improvements, and the stock is trading at 59 times earnings estimates, down from about 80 times [10][11].