Better Buy for Cautious Investors: Eli Lilly vs Costco
These companies may perform well in any market environment.
Overview
Investors piled into growth stocks in recent years, particularly in the area of artificial intelligence (AI), and this movement offered the overall market enormous momentum. The S&P 500 soared into a bull market, and the famous benchmark reached multiple record highs amid this optimism.
The bull market continues, but today, investors are feeling more hesitant than they were earlier in this growth story. A series of headwinds has weighed on stock performance periodically -- from concerns about the general economic backdrop amid rising inflation to worries that companies may be spending too much on AI infrastructure development. Though S&P 500 earnings soared in the recent quarter, and demand for AI remains high, some investors today favor caution.
Details
And this brings me to the following question: If you're looking for a certain level of safety today, which stocks should you buy? Pharmaceutical players and some consumer-related names could be the answer as people rely on their products regardless of the economic situation. Two winners that come to mind are Eli Lilly (NYSE:LLY) and Costco Wholesale (NASDAQ:COST). They both make great additions to a portfolio looking for security. But if you could only buy one, which is the better buy right now? Let's find out.
Source
Originally published at www.fool.com.