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Investing in Reliable Stocks Amid a Volatile Market

In today's rapidly changing market, investors often struggle to choose the right stocks to invest in. Some opt for the easier route of buying an exchange-traded fund that holds a variety of well-known companies like Apple, Microsoft, and Amazon. Others, however, prefer to take a riskier approach and bet on popular stocks, like GameStop and AMC.

Despite this, it's widely agreed that owning an index ETF is the safer option for investing, especially if the goal is to save for retirement. A diversified portfolio of companies is always a better choice than trying to predict the success of individual stocks.

Recently, a screen was run to identify a list of dependable stocks for investors. The criteria for these stocks included a history of double-digit sales growth over the past five years and a projected profit growth of at least 10% for the next few years. Some of the companies that made the list include Accenture, Adobe, Analog Devices, Applied Materials, PayPal, Progressive, Humana, Ulta Beauty, Deckers Outdoor, JB Hunt, and Raymond James. These stocks come from a variety of sectors including technology, insurance, retail, and financial services.

Despite the recent surge in the market, due to declining inflation and Federal Reserve rate hikes, consumers remain cautious about spending money on more expensive items. This has resulted in disappointing results for companies like Tyson Foods and Capri Holdings. On the other hand, consumers are still spending on more affordable products, as seen in the strong results from Pepsi and Yum! Brands.

This week, several big consumer brands, including Coca-Cola, Restaurant Brands, Kraft Heinz, Bloomin' Brands, Boston Beer, and DoorDash, are set to release their latest earnings. The restaurant industry, in particular, is expected to perform well, as consumers continue to trade goods for services.

Inflation is still a challenge for these companies, but economists are hoping for a slowdown in prices this week. If this occurs, companies may have an easier time passing on the costs to customers without losing them.


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