Investing

5 Sin Stocks to Buy That Should Hold Up in a Bear Market

Caesars Entertainment

This well-known old-school gaming company is offering solid upside. Caesars Entertainment Corp. (NASDAQ: CZR) provides casino-entertainment and hospitality services, and its resorts operate primarily under the Harrah’s, Caesars and Horseshoe brand names.

Caesars facilities include gaming offerings, food and beverage outlets, hotel and convention space, and non-gaming entertainment options. Caesars Entertainment is one of the largest gaming companies in the world and currently owns or operates 49 casino properties in 13 states and in four other countries.

Activist investor Carl Icahn is said to be building a massive position in the company, which could be very positive for Caesars investors.

The $11 SunTrust Robinson Humphrey price target is in line with the posted consensus target of $11.16. The shares closed Monday’s trading at $8.56 apiece.

Diageo

This is one of the largest producers of alcoholic beverages in the world. Diageo PLC (NYSE: DEO) produces, markets and sells alcoholic beverages worldwide, including scotch whiskey, gin, vodka, rum, beer, Irish cream liqueurs, wine, Raki, tequila, Canadian and American whiskey, Cachaça and brandy, as well as adult beverages and ready to drink products. The company’s premium brands include Johnnie Walker, Smirnoff, Captain Morgan, Baileys, Tanqueray, and Guinness.

Its reserve brands include Johnnie Walker Blue Label, Johnnie Walker Green Label, Johnnie Walker Gold Label 18 year old, Johnnie Walker Gold Label Reserve, Johnnie Walker Platinum Label 18 year old, John Walker & Sons Collection, Johnnie Walker The Gold Route, Johnnie Walker The Royal Route, and other Johnnie Walker super premium brands, as well as The Singleton, Cardhu, Talisker, Lagavulin and other malt brands.

Shareholders of Diageo are paid a 2.12% dividend. Merrill Lynch has set a $176 price target on the shares. The posted consensus target is $156.62, but the shares closed above that level on Monday at $162.93.

Lockheed Martin

This is one of the top aerospace and defense stocks to buy, and many on Wall Street are expecting a very solid continuation of U.S. and foreign defense spending. Lockheed Martin Corp. (NYSE: LMT) researches, designs, develops, manufactures, integrates, operates and sustains advanced technology systems, products and services. It also provides a wide range of defense electronics products and IT services.

Being the Pentagon’s prime contractor, Lockheed Martin offers a diverse portfolio of global aerospace, defense, security and advanced technologies. Its leveraged presence in the Army, Air Force, Navy and IT programs guarantees a steady inflow of follow-on orders, not only from the U.S. government but also from many foreign allies of the nation.

Lockheed Martin investors are paid a 3.0% dividend. The Merrill Lynch analysts have a price objective of $390. The consensus target price is $378.83, well above the most recent close at $294.12 a share.

Needless to say, nobody should invest in something they are personally against. However, if these industries don’t bother you, they may have solid portfolio potential, and typically, even if the economy gets rocky, they are able to hold their own.

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