3 Rock-Solid Stocks You Need To Know Now

September is traditionally a rocky time for the markets. “I’m skeptical that the S&P can continue this uninterrupted, and I do expect we’ll see at least a 4 to 5 percent correction, at least sometime in the month of September into October,” Mark Newton, founder and president of Newton Advisors, told CNBC last week.

Here are three key defensive stocks to follow now. We used TipRanks powerful market data to source three promising stock picks, that look set to outperform whatever the weather. As you will see all three of these stocks boast a bullish ‘Strong Buy’ analyst consensus rating.

Let’s take a closer look now:

1. Costco (Nasdaq:COST)

There is no doubt that warehouse-retail chain Costco is one of the Street’s favorite stocks. Just take a look at this screenshot showing all the recent buy ratings this stock has received:

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That’s 13 buy ratings in the last three months vs just 1 hold rating back in June. Top Oppenheimer analyst Rupesh Parikh (Profile & Recommendations) is certainly singing this stock’s praises. “We believe COST remains best positioned in our entire food and grocery coverage to deliver sustainable top- and bottom-line performance” stated Parikh on August 21. This makes the stock a favorite long-term stock pick.

Despite just initiating coverage of Costco only a few weeks ago, Parikh has already boosted his price target from $210 to $250. He explains that “Ongoing market share gains in the grocery category coupled with continued momentum in the company’s more discretionary offerings should help to sustain a mid-single-digit type comp trajectory.” Factor in a still strong consumer backdrop, and you can see why analysts are getting so excited.

Overall this ‘Strong Buy’ stock comes with an average analyst price target of $238. See what other Top Analysts are saying about COST.

2. Monster Beverage (Nasdaq:MNST)

This booming beverages stock is celebrating right now. The reason: quarterly sales exceed $1bn for the first time. MNST owns multiple drink brands including its namesake energy drink, as well as the Relentless and Muscle Monster protein shakes.

Post-results, top Jefferies analyst Kevin Grundy (Profile & Recommendations) told investors that Monster remains his ‘top large cap growth idea.’ “We are edging up our EPS estimates. ~1% following MNST’s solid quarter” cheered Grundy. Even though the quarter lacked surprises (‘boringly good’ is this analyst’s exact choice of words) the closely-watched July adj. sales update of ~11% impressed nonetheless.

Looking forward, Grundy sets out three key reasons for his bullish case. These are as follows: 1) strong sales growth in both the US and international markets 2) attractive valuation, and 3) strategic optionality should Coca-Cola acquire remaining 82% o/s shares. This would drive shares up to $88 says Grundy. In the meantime, he is sticking with his $71 price target (17% upside).

In total this Strong Buy stock has scored 8 recent buy ratings- versus just 1 sell rating. This is with a $66.44 average analyst price target.

 

View MNST Price Target & Analyst Rating Details

3. O’Reilly Automotive, Inc. (Nasdaq:ORLY)

O’Reilly is one of the largest specialty retailers of auto parts in the US, with over 4,000 stores.  And the stock is killing it right now. “Over the past several years, ORLY has matured into one of the best-run and best-positioned chains in the Aftermarket Auto Parts sector and broader Retail” gushes five-star Oppenheimer analyst Brian Nagel (Profile & Recommendations).

 

Shares have now bounced back over 80% from 2017 lows (crushing the S&P’s gains), and Nagel spies a long growth runway ahead. Following a deep dive into the company’s outlook, he concludes: “recovery is solidly underway at ORLY, and that the market continues to under-appreciate the near- and longer-term earnings power of the chain.” This includes a solid sector backdrop and market share opportunities coming as a result of ongoing struggles at leading competitors.

As a result, Nagel significantly ramped up his 12-18 month price target on the stock from $305 to $360. This places him way ahead of the average top analyst price target of $347. Overall this ‘Strong Buy’ stock has received only buy ratings from top analysts in the last three months. See what other Top Analysts are saying about ORLY.

Also consider: Discount retailer Dollar Tree (Nasdaq:DLTR).

While the stock has a more cautious Moderate Buy consensus, it does have its supporters. Most notably, Oppenheimer’s Rupesh Parikh (Profile & Recommendations) has a “Buy” rating on the stock with a $108 price target (34% upside potential). He writes: We continue to view DLTR as the higher beta play and more of the value name within the space trading at less than 10x our below-consensus FY19 EBITDA forecast.” See what other Top Analysts are saying about DLTR.