Investing

Stock Market Looks Very Overbought: 5 Safe Stocks to Buy Now

Earlier this year, Intel announced the purchase of Mobileye for $15.3 billion. The Israel sensor company gives the chip giant a leg up in the autonomous car competition, and it also adds many other capabilities. This is a big IoT segment going forward.

First-quarter numbers were affected by lower data center spending, but with second quarter and year-over-year numbers expected to grow, the tech giant is well positioned for the future.

Intel investors are paid a solid 3.05% dividend. The $44 JPMorgan price target compares with the consensus target of $40.15. The shares closed Thursday at $35.69.

Kraft Heinz

This consumer staples stock makes sense for nervous investors. Kraft Heinz Co. (NYSE: KHC) is the third-largest food and beverage company in North America and the fifth-largest in the world, with eight $1 billion-plus brands. A globally trusted producer of delicious foods, Kraft Heinz provides high quality, great taste and nutrition for all eating occasions whether at home, in restaurants or on the go.

The company’s iconic brands include Kraft, Heinz, ABC, Capri Sun, Classico, Jell-O, Kool-Aid, Lunchables, Maxwell House, Ore-Ida, Oscar Mayer, Philadelphia, Planters, Plasmon, Quero, Weight Watchers Smart Ones and Velveeta.

Consumer staples are expected to continue to do well this year, and this is one of the top companies in the sector. Analysts across Wall Street are generally bullish on the potential for solid earnings continuing through 2017 and beyond. While the company’s first-quarter numbers came in slightly below most consensus estimates, overall sales were in line with forecasts. JPMorgan feels that despite the disappointing results the company posted in Canada, trends are likely to improve the rest of the year.

Shareholders are paid a 2.7% dividend. JPMorgan has set its price target at $102. The consensus target is lower at $90.29. The shares closed Thursday at $89.28, which is just above the 200-day moving average.

Philip Morris International

This company has continued to grow global market share and makes good sense for total return investors now. Philip Morris International Inc. (NYSE: PM) is the world’s leading international tobacco company, with six of the world’s top 15 international brands and products sold in more than 180 markets.

In addition to the manufacture and sale of cigarettes, including Marlboro, the number one global cigarette brand, and other tobacco products, the company is also engaged in the development and commercialization of reduced-risk products (RRPs), the term it uses to refer to products with the potential to reduce individual risk and population harm in comparison to smoking cigarettes. Through multidisciplinary capabilities in product development, state-of-the-art facilities and industry-leading scientific substantiation, Philip Morris aims to provide an RRP portfolio that meets a broad spectrum of adult smoker preferences.

The company reported earnings slightly below estimates, but the full-year underlying guidance remains the same.

Philip Morris shareholders receive a 3.77% dividend. The JPMorgan price target is $120, and the consensus target is $117.80. Shares closed below those levels on Thursday at $111.19.

None of these stocks offer parabolic upside, but they do offer some investor safety in a very pricey and overbought market. While the rest of 2017 and farther down the road may offer some bright investment opportunity, the near-term is somewhat more cloudy, so a safe approach is probably the best.