In this article, we discuss the 15 best retirement stocks to buy according to the media. If you want to skip our detailed analysis of these stocks, go directly to 5 Best Retirement Stocks to Buy According to the Media.
There is increased investor interest in the American stock market as growth metrics make headlines after a macro slowdown in the past two years. Investors have been given confidence as prospects of lowered rates serve to boost the major indexes to swing upwards. For example, the S&P 500 is up more than 8% in the past two months, the NASDAQ Composite is up close to 9%, and the Dow Jones has registered gains of around 3%. This is quite extraordinary given the contraction of the indexes in the past few months as rates went up.
There are several other reasons for investors to be optimistic about the health of the US stock market. Inflation figures have started showing signs of slowing down, consumer spending is holding steady, the labor market remains resilient as ever, and financial experts have come together to predict that the US will be able to avoid a major recession. As the market normalizes, big companies like Johnson & Johnson (NYSE:JNJ), Pfizer Inc. (NYSE:PFE), and The Proctor and Gamble Company (NYSE:PG) are all performing exceptionally well.
These firms have been able to withstand inflationary pressures and emerge stronger than ever from the crisis of the past two years. Generally, the three firms mentioned above are considered safe stocks for a retirement portfolio since they have established businesses, a solid track record of dividend payouts, and a steady growth profile. Joaquin Duato, the CEO of Johnson & Johnson (NYSE:JNJ), recently gave an insight into the future plans of his company, at the fourth quarter earnings call, that might be of interest to investors.
“As we look ahead, I have never been more excited about the future of our business. At our enterprise business review, we shared that we expect our innovative medicine business to grow 5% to 7% from 2025 to 2030 with our industry-leading pipeline and portfolio delivering more than 10 assets that have the potential to generate over $5 billion in peak year sales by 2030. We also expect a further 15 assets to have the potential for $1 billion to $5 billion in peak year sales. In 2024, we expect data readouts for many of these assets, including Phase 3 trials for Tremfya in IBD; Erleada in early stage prostate cancer; our targeted oral peptide, JNJ-2113 in psoriasis; nipocalimab in myasthenia gravis; as well as aticaprant and seltorexant in major depressive disorder.
We also expect Phase 2 readouts for our combination therapy guselkumab and golimumab, JNJ-4804, in psoriatic arthritis; nipocalimab in Sjogren's disease; and TAR-200 in non-muscle invasive bladder cancer. In medtech, we shared that we expect to grow at the upper range of our markets, which are anticipated to grow by 5% to 7% between 2022 and 2027. And that by 2027, we expect one-third of our revenue to be generated by new products. In 2024, we'll see strong progress toward these goals.” [read the full earnings call transcript here]
Our Methodology
To select stocks for this list, we scoured the top retirement stock picks as recommended by prominent financial websites like The Motley Fool, Forbes, KipLinger, Investopedia, Morningstar, Zacks, Market Watch, and Business Insider. The top twenty consensus picks were then selected. The analyst ratings of each stock are also discussed to provide readers with some context for their investment choices. The hedge fund sentiment around each stock was calculated using the data of around 900 hedge funds tracked by Insider Monkey in the fourth quarter of 2023. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.
Photo by Diana Parkhouse on Unsplash
15. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 63
Number of Times Stock Appeared in Top Picks of Financial Media: 1
Verizon Communications Inc. (NYSE:VZ) is a New York-based multinational telecommunication firm. On January 30, investment advisory Citi maintained a Buy rating on Verizon Communications Inc. (NYSE:VZ) stock and raised the price target to $47 from $45.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Verizon Communications Inc. (NYSE:VZ) with 5.9 million shares worth more than $225 million.
Just like Johnson & Johnson (NYSE:JNJ), Pfizer Inc. (NYSE:PFE), and The Proctor and Gamble Company (NYSE:PG), Verizon Communications Inc. (NYSE:VZ) is one of the best retirement stocks to buy according to the media.
14. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 71
Number of Times Stock Appeared in Top Picks of Financial Media: 1
Chevron Corporation (NYSE:CVX) engages in integrated energy and chemical operations worldwide. On February 5, investment advisory RBC Capital maintained an Outperform rating on Chevron Corporation (NYSE:CVX) stock and raised the price target to $190 from $185.
At the end of the fourth quarter of 2023, 71 hedge funds in the database of Insider Monkey held stakes worth $21.6 billion in Chevron Corporation (NYSE:CVX), compared to 72 in the preceding quarter worth $21.4 billion.
In its Q4 2023 investor letter, Diamond Hill, an asset management firm, highlighted a few stocks and Chevron Corporation (NYSE:CVX) was one of them. Here is what the fund said:
“Other bottom contributors included Chevron Corporation (NYSE:CVX), Carrier Global and Becton, Dickinson. Shares of integrated oil and gas company Chevron were pressured as global oil production is growing — particularly in the US, which has now surpassed its past production levels — in turn pressuring oil prices and company profit margins.”
13. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 85
Number of Times Stock Appeared in Top Picks of Financial Media: 1
Exxon Mobil Corporation (NYSE:XOM) explores for and produces crude oil and natural gas. On January 23, investment advisory UBS maintained a Buy rating on Exxon Mobil Corporation (NYSE:XOM) stock and lowered the price target to $132 from $133.
Among the hedge funds being tracked by Insider Monkey, Lauderdale, New York-based investment firm First Eagle Investment Management is a leading shareholder in Exxon Mobil Corporation (NYSE:XOM) with 13 million shares worth more than $1.3 billion.
12. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 91
Number of Times Stock Appeared in Top Picks of Financial Media: 2
ServiceNow, Inc. (NYSE:NOW) provides enterprise cloud computing solutions that define, structure, consolidate, manage, and automate services for enterprises worldwide. On January 26, investment advisory Citi maintained a Buy rating on ServiceNow, Inc. (NYSE:NOW) stock and raised the price target to $896 from $862.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Tiger Global Management LLC is a leading shareholder in ServiceNow, Inc. (NYSE:NOW) with 579,655 shares worth more than $409 million.
In its Q4 2023 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and ServiceNow, Inc. (NYSE:NOW) was one of them. Here is what the fund said:
“ServiceNow, Inc. (NYSE:NOW) offers cloud-based solutions that improve workflow efficiency through automation and digitalization. The stock rose 26.4% in the fourth quarter, finishing the year up 82.0%. Stock appreciation was supported by strong quarterly results above expectations with 24.5% year-over-year subscription revenue growth in constant currency and 30% non-GAAP operating margins despite ongoing macro complexities. In addition, the stock benefited from growing investor expectations that the company would benefit from the integration of GenAI technology into its products, and a rise in software stocks more broadly. Management noted that key business drivers included strong traction with government customers, improving momentum with new customers, and budget consolidation into platforms like ServiceNow. In addition, the company launched its GenAI-supported product line, sold under a new higher-priced Pro Plus sku, at the end of the quarter and has already signed on multiple customers with hundreds more in the pipeline. The new product line should generate material efficiencies for customers as it improves their ability to automate and digitize, and hence we expect broader adoption of the Pro Plus sku, creating an additional growth engine for ServiceNow, supporting the company’s long duration of growth.”
11. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 70
Number of Times Stock Appeared in Top Picks of Financial Media: 2
The Home Depot, Inc. (NYSE:HD) is a home improvement retailer. On March 4, investment advisory TD Cowen maintained an Outperform rating on The Home Depot, Inc. (NYSE:HD) stock and raised the price target to $440 from $415.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm Citadel Investment Group is a leading shareholder in The Home Depot, Inc. (NYSE:HD) with 1.2 million shares worth more than $447 million.
In its Q3 2023 investor letter, Madison Investments, an asset management firm, highlighted a few stocks and The Home Depot, Inc. (NYSE:HD) was one of them. Here is what the fund said:
“We updated the sustainable scorecard for The Home Depot, Inc. (NYSE:HD) and maintained our Above Average Rating. Home Depot’s corporate responsibilities focus on three pillars: focusing on its people, operating sustainably, and strengthening its communities. Home Depot continues to focus on its people by investing billions of dollars in wages, training, and benefit enhancement. The company’s environmental targets include the reduction of direct (Scope 1) and indirect (Scope 2) emissions by 42% by 2030, as well as a 25% decrease in emissions related to the “use of products sold” (Scope 3 emissions). Both targets are from a 2020 base year.
Separately, The Home Depot Foundation announced that it will invest $6 million in skilled trades training to address the 400,000 job openings across the construction industry. This grant launches a new program that will provide free, skilled trades training and scholarships for veterans and military families.”
10. Thermo Fisher Scientific Inc. (NYSE:TMO)
Number of Hedge Fund Holders: 111
Number of Times Stock Appeared in Top Picks of Financial Media: 2
Thermo Fisher Scientific Inc. (NYSE:TMO) markets analytical instruments, specialty diagnostics, and laboratory products. On February 1, investment advisory RBC Capital maintained an Outperform rating on Thermo Fisher Scientific Inc. (NYSE:TMO) stock and raised the price target to $642 from $592.
At the end of the fourth quarter of 2023, 111 hedge funds in the database of Insider Monkey held stakes worth $10.3 billion in Thermo Fisher Scientific Inc. (NYSE:TMO), up from 109 in the preceding quarter worth $8.9 billion.
9. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 141
Number of Times Stock Appeared in Top Picks of Financial Media: 3
Mastercard Incorporated (NYSE:MA)is a technology company that provides transaction processing and other payment-related products and services in the United States and internationally. At the end of the fourth quarter of 2023, 141 hedge funds in the database of Insider Monkey held stakes worth $16.8 billion in Mastercard Incorporated (NYSE:MA), compared to 140 in the preceding quarter worth $15.2 billion.
8. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 173
Number of Times Stock Appeared in Top Picks of Financial Media: 3
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. On March 7, investment advisory Mizuho maintained a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) stock and raised the price target to $1,000 from $850.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm Citadel Investment Group is a leading shareholder in NVIDIA Corporation (NASDAQ:NVDA) with 15.4 million shares worth more than $7.6 billion.
In its Q4 2023 investor letter, Fred Alger Management, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here is what the fund said:
“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super- computing parallel processing techniques for solving complex computational problems. Simply put, Nvidia’s computational power is a critical enabler of Al and therefore critical to Al adoption, in our view. During the period, shares contributed to performance as Nvidia reported solid fiscal third quarter results well above analyst expectations, driven by strong demand from data centers. Growing Al data center workloads are driving demand for the increased interconnections and fully accelerated software stacks, thereby enabling leading application performance and fast result times.”
7. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 162
Number of Times Stock Appeared in Top Picks of Financial Media: 4
Visa Inc. (NYSE:V) is a California-based payments technology firm. On March 8, investment advisory Jefferies maintained a Buy rating on Visa Inc. (NYSE:V) stock and raised the price target to $320 from $305.
At the end of the fourth quarter of 2023, 162 hedge funds in the database of Insider Monkey held stakes worth $26 billion in Visa Inc. (NYSE:V), compared to 167 in the preceding quarter worth $24 billion.
In its Q3 2023 investor letter, Ensemble Capital Management, an asset management firm, highlighted a few stocks and Visa Inc. (NYSE:V) was one of them. Here is what the fund said:
“Mastercard is a company that pretty much everyone has heard of. In fact, when we meet with Ensemble’s clients, we occasionally tell them that we’re nearly certain that they are carrying a Mastercard in their wallet or purse as we speak, and if not, they are carrying a Visa Inc. (NYSE:V). Most people carry both.
People carry Mastercard and Visa because they are accepted nearly everywhere in developed markets. And they are accepted in most emerging economies, at least at locations where higher income people spend money. As a shopper you can show up at a bodega in Peru, a high end hotel in Tokyo, a truck stop in Alabama, or an ice cream cart in Milan, show them a piece of plastic and they’ll let you walk away with goods and services without any worry that they aren’t going to get paid…” (Click here to read the full text)
6. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 27
Number of Times Stock Appeared in Top Picks of Financial Media: 4
Realty Income Corporation (NYSE:O) is a real estate investment trust that provides shareholders with monthly dividends. On March 7, investment advisory Mizuho maintained a Buy rating on Realty Income Corporation (NYSE:O) stock and lowered the price target to $56 from $60.
At the end of the fourth quarter of 2023, 27 hedge funds in the database of Insider Monkey held stakes worth $332 million in Realty Income Corporation (NYSE:O), compared to 23 in the previous quarter worth $149 million.
Along with Johnson & Johnson (NYSE:JNJ), Pfizer Inc. (NYSE:PFE), and The Proctor and Gamble Company (NYSE:PG), Realty Income Corporation (NYSE:O) is one of the best retirement stocks to buy according to the media.
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Disclosure. None. 15 Best Retirement Stocks to Buy According to the Media is originally published on Insider Monkey.
