Stocks to buy

To be quite blunt, the very idea of proposing boring stocks to buy seems absolutely stupid in most circumstances. Not to break the fourth wall or anything but I have a feeling you didn’t come to read InvestorPlace articles because you wanted to hear a pitch about slow-and-steady risers. Instead, you likely came here for the exciting stuff.

Of course, there’s plenty of material covering exactly that topic. However, buy-and-hold stocks command significant relevance, especially in this ambiguous environment. I’ve said this before but the May jobs report – while busting expectations – also demonstrated fissures in the economy. In particular, unemployment conspicuously increased while employers don’t appear to be aggressively competing on wage incentives. Given that it’s still possible for a recession to materialize, now might not be the time to carry exclusive exposure to risk-on enterprises. Instead, the below-stable stocks for long-term investing might be more appropriate.

CF Industries (CF)

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An American manufacturer and distributor of agricultural fertilizers, CF Industries (NYSE:CF) specializes in hydrogen and nitrogen products for clean energy, emissions abatement, fertilizer, and other industrial applications. Further, the company operates manufacturing complexes in the U.S., Canada, and the U.K. Due to geopolitical flashpoints, CF Industries ranks among the most relevant boring stocks to buy.

Unfortunately, the market doesn’t quite see it that way, sending CF down more than 14% since the start of the year. Over the past 365 days, it shed nearly 18% of its equity value. Nevertheless, in part because of the volatility, CF appears significantly undervalued. Notably, shares trade at a price-earnings-growth ratio of 0.13 times, well below the sector median value of 0.74 times.

Also, it’s worth pointing out that in addition to its massive revenue growth, CF features a Piotroski F-Score of 9 out of 9. This stat indicates excellent operational efficiency. Finally, analysts peg CF as a moderate buy with an $87.06 price target (implying nearly 24% upside). For those interested in long-term investing, CF makes a compelling argument.

Valero Energy (VLO)

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An international manufacturer and marketer of transportation fuels and petrochemical products, Valero Energy (NYSE:VLO) is a Fortune 50 enterprise based in San Antonio, Texas. Per its corporate profile, Valero operates 15 petroleum refineries with a combined throughput capacity of approximately 3.2 million barrels per day. Also, it features 13 ethanol plants with a combined production capacity of approximately 1.68 billion gallons per year.

Due to the softness in the energy space – in part due to the hawkish monetary environment – the hydrocarbon space features mixed performances. For VLO specifically, it declined about 3% since the January opener. Still, it’s one of the boring stocks to consider, just in case full social normalization materializes. Also, VLO stands among the buy-and-hold stocks due to its robust financials. As with CF Industries above, Valero enjoys above-average long-term revenue growth. At the same time, it runs a Piotroski F-Score of 9, indicating outstanding operational efficiency.

Lastly, analysts peg VLO as a moderate buy with a $144.20 price target, implying nearly 24% upside. Arguably, it’s one of the stable stocks to put on your radar.

STMicroelectronics (STM)

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Hailing from Switzerland, STMicroelectronics (NYSE:STM) designs, develops, manufactures, and markets products for the broader digital ecosystem, which encompasses relevant arenas such as smart mobility, renewable energy, and the Internet of Things. Per its public profile, ST offers discrete and standard commodity components, application-specific integrated circuits, full custom devices, and semi-custom devices for analog, digital, and mixed-signal applications.

Of course, it’s hard to describe tech players as boring stocks to buy. However, ST operates in the background, almost like a stagehand for headline-generating innovators. So, under this context, ST might be a snoozer for some folks. Nevertheless, those interested in long-term investing should earmark shares on their must-watch list.

Financially, ST posts impressive revenue and EBITDA growth over the past three years. At the same time, the company commands a Piotroski F-Score of 8, indicating strong operational efficiency. Also, its Altman Z-Score clocks in at 6.09, indicating a very low bankruptcy risk. To close, analysts peg STM as a unanimous strong buy with a $63 price target (implying over 29% upside). It’s easily one of the buy-and-hold stocks.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.

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