3 Stocks You Can Confidently Buy After a Market Downturn
Amid evidence of a slowing economy, it's a good idea for investors to focus on stocks that can emerge strongly from any downturn. Diversified industrial Honeywell International (NASDAQ: HON), industrial software company PTC (NASDAQ: PTC), and Google owner Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) will suffer from a slowdown, but they also are likely to come out of it in excellent shape. Here's why.
While some mature companies are locked into growth rates that only match gross domestic product gains, Honeywell upgraded its expectations for long-term growth from between 3% and 5% to between 4% and 7% at its investor day event in March.
It comes down to the company's ability to generate growth through its investment in new technology. For example, Honeywell's management monitors a metric called its "new product introduction vitality index," or NPI vitality. It represents the percentage of its sales coming from products introduced in the past three years. In a demonstration of the company's growth potential, this metric has gone from 17% in 2017 to 31% in 2021 and the company estimates it will reach 33% in 2023.
Source Fool.com
