Three stable stocks to tackle the market sell-off

Source:zimmytws, Shutterstock

Summary

  • In these challenging times, the large-cap stable stocks come to the rescue and hold the portfolio from falling rapidly.
  • Kogan.com has been one of the few companies that have done well even during the pandemic.
  • Afterpay has been a star performer during the pandemic, reaching an active customer base of 13.1 million.

When long-term bond yields are rising up through the roof, it becomes imperative to protect the portfolio from the potential fall in the financial markets that the world is witnessing. On 18 March, US 10-year bond yields have risen to a new 14-month high. Consequently, the global markets have faced heavy selling across the board.

Image Source: Copyright © 2021 Kalkine Media Pty Ltd.

In these challenging times, the large-cap stable stocks come to the rescue and hold the portfolio from falling rapidly. Let’s have a look at a few of these large-cap stocks that could provide overall stability to an investor’s portfolio.

  1. Coles Group Limited (ASX:COL)

Coles Group’s sales revenue has increased by 8.1% to $20.4 billion during 1H FY21, while comparable sales grew by 7.2% in Supermarkets, 15.1% in Liquor and 9.9% in Express. More importantly, the supermarkets' customer satisfaction has notched up by 3.9pp to 89.8 per cent compared to 2H FY20.

Customer-led range change activity has continued during 1H FY21, with more than 340 range changes completed across categories such as frozen meals, health foods and nutritional snacks.

Read More: Coles Group (ASX:COL) Sets New Emissions Target

  1. com Limited (ASX:KGN)

Kogan.com has been one of the few companies that have done well even during the pandemic. The company has clocked gross sales of $638.2 million, outperforming the prior year period by a massive 97.4%. As of 31 December 2021, the company had 3,003,000 active customers, representing an increase of 76.8% YoY.

Image Source: ID 44905065 © Gajus | Megapixl.com

The company has also acquired Mighty Ape, one of New Zealand’s largest online retailers having a niche in toys, gaming and other entertainment categories.

  1. Afterpay Limited (ASX:APT)

Afterpay has been a star performer during the pandemic. The company’s Net Transaction Margin (NTM) as a percentage of underlying sales remained strong at 2.2% in H1 FY21, with all regions achieving positive and growing metrics. The balance sheet remained robust with over $1.7 billion of pro forma liquidity and growth capacity as of 31 December 2020.

The active customer base reached 13.1 million (up 80% on H1 FY20), with active customers in North America exceeding the 8 million milestones (up 127% on pcp).


 


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and