3 Safe Stocks to Buy as the Market Moves from 1 Extreme to Another
Then, Trump announced a 90-day pause on tariffs for all trading partners except China. The stock market soared, with the S&P 500 Index ($SPX) closing up nearly 10% on Wednesday, April 9.
In turbulent times like these, the consumer staples sector can act as a bulwark for an investor's portfolio. These companies experience consistent demand, steady cash flows, and have navigated business for decades or more.
No matter what happens next, these three safe stocks are worth a close look here.
Safe Stock #1: Coca-Cola
Warren Buffett has long been a fan of Coca-Cola (KO), making KO a great safe stock for investor portfolios.
Coca-Cola is now synonymous with refreshing beverages worldwide. Commanding a market cap of about $294 billion, KO stock is up almost 12.5% on a year-to-date basis. Coca-Cola is also a member of the coveted 'Dividend King' club, having raised its dividends consecutively for 50 years or more. Currently, the stock offers a dividend yield of 2.9%.
Coca-Cola has consistently outperformed the market in terms of earnings in recent years with the results of its latest quarter being no exception. In Q4 2024, net revenues rose by 6% from the previous year to $11.5 billion with EPS growing by an even sharper 12.2% to $0.55. Remarkably, this marked the 15th consecutive quarter of earnings beats from the company.
Coca-Cola's global infrastructure continues to give it a powerful edge as it looks to deepen its presence in emerging markets. With an extensive bottling system — nearly 200 partners worldwide — and daily consumption of its beverages reaching 2.2 billion servings, the company is well positioned to capture growing demand in developing economies where brand familiarity and distribution scale remain critical competitive advantages.
Meanwhile, Coca-Cola is actively realigning its offerings and engagement models to better resonate with Gen Z consumers. One of the more strategic developments has been the introduction of a digitally driven ecosystem rolled out in 2023, crafted specifically to target the preferences and consumption habits of younger audiences. Supporting this effort is the expansion of its product lineup to include Simply Pop, a new prebiotic beverage that builds on the broader wellness trend among this demographic. Its sparkling water brand, Topo Chico, also continues to gain traction.
Thus, analysts have deemed the stock a 'Strong Buy' with a mean target price of $76.86 which indicates upside potential of about 10% from current levels. Out of 22 analysts covering the stock, 20 have a 'Strong Buy' rating, one has a 'Moderate Buy' rating, and one has a 'Hold' rating.
Safe Stock #2: Keurig Dr Pepper
Moving from one beverage giant to another, Keurig Dr Pepper (KDP) was formed in 2018 through the merger between Keurig Green Mountain and the Dr Pepper Snapple Group. The beverage conglomerate has a strong presence in coffee, soft drinks, water, juice, and mixers, operating across hot and cold beverage categories with leading brands like Dr Pepper, 7UP, Snapple and Mott's in its portfolio.
Valued at a market cap of $45.6 billion, KDP stock is up 8% on a YTD basis. Notably, the stock offers a dividend yield of 2.65%.
The most recent quarter saw the company reporting a beat on both revenue and earnings. Net sales of $4.1 billion represented yearly growth of 5.2% while adjusted earnings saw 5.5% growth in the same period to $0.58, coming in ahead of consensus estimates. Overall, KDP's EPS have exceeded Street expectations in seven out of the past eight quarters.
Keurig Dr Pepper is steadily transforming into a serious contender in the energy drinks space — a segment where it had virtually no presence until a few years ago. Central to this momentum is its acquisition of GHOST, a youth-driven energy drink brand that has struck a chord with Gen Z consumers.
Beyond energy drinks, KDP continues to reinforce its dominance in more established beverage segments. The company's coffee platform, especially in the single-serve pod market, remains the largest in the U.S., thanks in large part to successful brand tie-ups with widely recognized players such as Starbucks (SBUX) and Dunkin'. On the soda front, Dr Pepper has climbed to second place among cola-style beverages in the U.S., capturing 8.3% of the market.
Considering these factors, analysts have assigned a rating of 'Moderate Buy' for the stock with a mean target price of $38.39. This indicates upside potential of roughly 11% from current levels. Out of 17 analysts covering the stock, 10 have a 'Strong Buy' rating, one has a 'Moderate Buy,' rating and six have a 'Hold' rating.
Safe Stock #3: Procter & Gamble
Procter & Gamble (PG), or P&G, specializes in a wide range of personal and consumer health and hygiene products. The company's market cap currently stands at about $371 billion.
PG stock is down 3.2% on a YTD basis while offering a dividend yield of 2.48%. PG is also a member of the storied 'Dividend King' club.
P&G's results for the most recent quarter were impressive, with both revenue and earnings surpassing estimates. Net sales of $21.9 billion denoted yearly growth of 2% while EPS clocked growth of 2% from the year-ago period to $1.88. Impressively, this was the 10th consecutive quarter of earnings beats from the company.
Notably, P&G shows strong physical expansion and AI integration, indicating long-term growth potential.
On the technology front, P&G is quietly reshaping its advertising strategy by incorporating artificial intelligence. Leveraging a proprietary system known as AI Studios, the company draws upon decades of internal ad testing data to forecast the likely performance of new campaigns. This enables rapid simulation and analysis, allowing creative concepts to be evaluated in a matter of hours rather than over several weeks. The acceleration of this testing cycle has not only trimmed costs significantly but also compressed the time required for rolling out fresh marketing initiatives, enhancing agility and efficiency across its brand portfolio.
Keeping this in mind, analysts have assigned a rating of 'Moderate Buy' for the stock with a mean target price of $181.88, which indicates upside potential of about 16% from current levels. Out of 27 analysts covering the stock, 16 have a 'Strong Buy' rating, two have a 'Moderate Buy' rating, and nine have a 'Hold' rating.
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