Buy These 3 Top Ranked Stocks to Survive the Banking Crisis

The market is experiencing distress in the banking sector, and it isn’t clear exactly what will happen next. After the tremendous rally in interest rates over the last year, it seems there are a number of banking institutions whose bond portfolios have been battered. While financial authorities have stepped up and opened specialized lending facilities to ease the banking stress, they have also stated that they believe the system is broadly safe and the issues are contained.

We will see if that is true over the next few months. Fortunately, there is always a bull market somewhere. Using the Zacks Rank is an effective way to identify stocks with strong near-term expectations.

Looking closer at historical data, like we do below can also help investors find stocks with robust fundamentals. Financial stocks and any other businesses sensitive to interest rates are a no go right now. Thannkfully there are still plenty of stocks that will survive and thrive in this market environment.

Below I go over three top-ranked stocks, from three different sectors. By diversifying across different industries, we decrease the correlation between investments and can further reduce the portfolio’s volatility. Ollie’s Bargain Outlet

Ollie’s Bargain Outlet (
OLLI Quick Quote
OLLI – Free Report)  is a discount retailer for name brand merchandise. The company sells a full range of goods, such as houseware, groceries, electronics, clothing, books, stationery and much more. Customers at Ollie’s are well known for being avid fans of the discount retailer, some traveling from far away to visit, and others making regular outings to the store to hunt for discounted treasures.

OLLI operates 450 stores in 29 states and was founded in 1982. Ollie’s Bargain Outlet is a Zacks Rank #1 (Strong Buy) stock, indicating upward trending earnings revisions. Current quarter sales are projected to grow 13% YoY to £460 million, while current year sales are expected to grow 13% to £2 billion.

Earnings Growth is expected to be exceptionally strong over the coming quarters. Current quarter earnings are expected to climb 140% to £0.48 per share, and current year earnings are expected to grow 52% to £2.46 per share. Revenues at OLLI have nearly tripled since its IPO in 2015.

Zacks Investment Research
Image Source: Zacks Investment Research Today, OLLI is trading at a one-year forward earnings multiple of 24x, which is below its five-year median of 32x, and above the industry average 19x. It should be noted that for most of its history, OLLI has traded at a premium to the industry.

Zacks Investment Research
Image Source: Zacks Investment Research An additional benefit of investing in discount shops is that people always enjoy a good deal. During a strong economy they like them, and during tough times it becomes a necessity.  

Hershey Hershey (
HSY Quick Quote
HSY – Free Report) , everyone’s favorite chocolate bar, is a phenomenal business, and stock. Over the last 20 years, HSY stock has compounded at an annual rate of 13%, and 10x’d investors’ money over that time.

This performance is nearly double that of the broad market. It was also a standout performer over the last 12 months, returning 20% compared to the market’s -10%. Zacks Investment Research

Image Source: Zacks Investment Research Something dramatic would have to shift in the world for people to stop consuming Hershey’s products. Additionally, considering the business has been around since 1894, it has been through all imaginable economic environments.

Investors can be confident HSY can survive a garden variety banking crisis. Hershey is a Zacks Rank #1 (Strong Buy) stock, indicating upward trending earnings revisions. Current year sales estimates are expecting 7.7% YoY growth to £11.2 billion and 10% earnings growth to £9.37 per share.

HSY has been pumping out this kind of steady growth for decades. Earnings per share have grown at an impressive 11% annually over the last 15 years. Zacks Investment Research
Image Source: Zacks Investment Research

Today, Hershey stock is trading at a one-year forward earnings multiple of 26x, which is in line with its 10-year median of 24x, and above the industry average 23x. HSY also offers a 1.7% dividend yield and has increased it by an average of 9% annually over the last five years. Zacks Investment Research
Image Source: Zacks Investment Research

Meta Platforms Meta Platforms (
META Quick Quote
META – Free Report)  is one of the best performing stocks in the market YTD. This performance follows one of the worst performances last year, with the stock was down nearly -80% in 2022.

Meta has made significant cuts to its workforce over the last year to dramatically rein in costs and boost profitability. This restructuring leaves META in an advantageous position, but it wasn’t until the stock got crushed that they decided to act. But now, as the economy enters an uncertain period, there is nothing better than stacking up free cash flow.

Meta was one of the early technology companies to start prioritizing profits, instead of growth in the last year, and many others have since followed suit. Zacks Investment Research
Image Source: Zacks Investment Research Meta boasts a Zacks Rank #1 (Strong Buy), indicating upward trending earnings revisions.

Last quarter META beat earnings expectations by 42%, and next quarter is projected to beat by 7%. Analysts have revised META’s earnings higher across all the timeframes. While current quarter has seen a nice upgrade, current year and next year are projected to be exceptional years for earnings growth.

Because of the major restructuring, Meta’s next year earnings have been revised higher by 37% over the last 90 days. Zacks Investment Research
Image Source: Zacks Investment Research After trading as low as 10x one-year forward earnings last year, META is now trading at 20x one-year forward earnings.

This is well below its 10-year median of 31x, and the industry average 45x. Zacks Investment Research
Image Source: Zacks Investment Research Conclusion

While many in the market are panicking, savvy investors are seeking out great deals. There may be more volatility to come in this market. Still great companies will always be great companies.

It is hard to go wrong with investing in companies with growing earnings and improving earnings estimates.

Tags:

cafe-rouge listed on couponmatrix.ukhello-fresh listed on couponmatrix.uktech-trade listed on couponmatrix.ukthe-gift-experience listed on couponmatrix.uktoner-giant listed on couponmatrix.uk365games listed on couponmatrix.uk
cafe-rouge listed on couponmatrix.ukThey first came to popularity as the hangout spot in Bridget Jones, but now Cafe Rouge are better known for their Parisienne style dining and authentic Frech food. They serve all your favourite classics such as Steak Frites, Moules and Confit de Canard so you can feast and save with the Cafe Rouge voucher. Good food is at the heart of what they do, so every meal from breakfast to dinner and everything in between is cooked to perfection.
hello-fresh listed on couponmatrix.ukIf you’re ever stuck for ideas of what to cook or find yourself lacking the motivation to plan your weekly meals and then go and pick up all the ingredients, then you have found the right place. HelloFresh solve dinner dilemmas by delivering fresh ingredients and recipes direct to your door. Customise your menu from the Hello Fresh recipe options, choose your delivery time and you’ll receive a box filled with all the ingredients you need to make the recipes you’ve chosen. When you use HelloFresh offers you’ll enjoy money off on a whole load of items. With a flexible subscription you can order as much or as little as you want every week, so you’ll never have to worry about what’s for dinner again.
tech-trade listed on couponmatrix.ukWhen you’re looking for high-grade technology at below-budget prices, look no further than Tech Trade! Providing a platform to acquire refurbished Macs and high-performance gaming computers, all that’s needed is a Tech Trade discount code to ensure you get the computing that matches your demands without breaking the bank. With iPads, virtual reality, accessories and gaming consoles to bolster its inventory, you’re free to enjoy a gargantuan amount of gaming hardware thanks to the variety and prices at Tech Trade. At Groupon we know that there are plenty of students who enjoy taking a break with a good gaming session. If that’s the case, then you’ll love the extra savings students can enjoy at Tech Trade, with the brand hosting a dedicated student discount of 10% off every order. Any university or college students seeking that little extra TLC without rinsing the few funds they have should navigate to the ‘Student’ tab, verify their credentials with StudentBeans and enjoy the free money-off provided at Tech Trade. Both portable and powerful, MacBooks have become a staple of today’s technology. It’s no surprise then that Tech Trade MacBooks are available in a variety of models including the Air, Pro and Retina. Those seeking some a refurbished Apple product that delivers on every level should utilise a Tech Trade coupon code to knock the cost of their new computer and enjoy endless hours of digital fun that’ll more than make up the price of their investment.
the-gift-experience listed on couponmatrix.ukThe Gift Experience first started trading in 2003. Giving the gift of an experience is really all the rage right now and so its no small wonder that this family-run enterprise quickly expanded from selling gifts and cards to gift experiences on a much larger scale. If you find that you're a bit stuck thinking up present ideas for friends, family and colleagues, The Gift Experience can help you find the ideal present and with your gift experience discount code to hand, there's no excuse for not flashing the cash and being generous.
toner-giant listed on couponmatrix.ukIf you're on the hunt for some top quality printing goods, look no further than Toner Giant for everything from paper to printers. Don't forget to use a Toner Giant voucher to discount that order and soon you'll be making unbelievable savings, so you can restock that office without blowing your budget. And the best part is, if you place your order before 5:30pm you can get next working day delivery!
365games listed on couponmatrix.ukIf you love gaming, you’ll love 365games. As well as all the latest releases for Playstation, Xbox, Nintendo and PC, 365games stocks an awesome range of board and card games, collectable merch, clothing, vinyl and box sets, too. Make the most of a 365 games discount code to save on your next haul - whether you’re after a classic Mario Kart game or want to dress like a diehard Marvel fan, you’ll find the perfect pick; or find an awesome gift for a geeky pal that doesn’t break the bank.