3 Stocks Best Able to Withstand a Second Market Downturn

The three stocks we’ve discovered have strong balance sheets to help weather another economic storm should one occur in 2020

SmallCapPower | June 4, 2020: Many experts fear the recent stock market rally will be short lived and we will see another downturn in 2020, should the economy not recover as quickly as many investors had hoped. If that were the case, we have identified three stocks with strong balance sheets that are best positioned to weather another economic storm in 2020.

*Returns are based on closing stock prices as of June 2, 2020

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Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) – $617.66
Regeneron Pharmaceuticals is a biotechnology company with medicines and a pipeline designed to help patients with eye diseases, allergic and inflammatory diseases, cancer, cardiovascular and metabolic diseases, infectious diseases, pain and rare diseases. Regeneron employs a genetically-humanized mouse to produce optimized fully-human antibodies and bispecific antibodies. Positive news concerning the Company’s Eylea eye-treatment drug has propelled REGN stock recently. Regeneron Pharmaceuticals held about US$4 billion in cash and short-term investments as of its last reported quarter.

  • Year-To-Date Return: 65%
    Take-Two Interactive Software, Inc. (NASDAQ:TTWO) – $134.60
    Take-Two Interactive is a developer, publisher and marketer of interactive entertainment for consumers worldwide, developing and publishing products principally through Rockstar Games, 2K, Private Division, and Social Point. The Company recently reported Fiscal 2020 net revenue that rose 16% year over year to $3.089 billion, while net income for the period increased 21% to $3.54 per diluted share. Take-Two held about US$2.6 billion in cash and short-term investments as of its last reported quarter.
  • Year-To-Date Return: 10%

Costco Wholesale Corporation (NASDAQ:COST) – $307.09
Costco Wholesale founded the world’s first membership warehouse shopping club, where consumers can save money by buying in bulk. The Company currently operates 787 warehouses, including 547 in the United States and Puerto Rico, 100 in Canada, 39 in Mexico, 29 in the United Kingdom, 26 in Japan, 16 in Korea, 13 in Taiwan, 12 in Australia, two in Spain, and one each in Iceland, France, and China. Costco also operates e-commerce sites in the U.S., Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan, and Australia. Costco recently announced better-than-expected third-quarter net sales of $36.45 billion, a 7.3% year-over-year increase. Costco Wholesale held about US$11.8 billion in cash and short-term investments as of its last reported quarter.

  • Year-To-Date Return: 5%

Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.

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