In this market environment, investors of all stripes should prioritize companies with strong balance sheets. For those with longer time horizons, affecting some beaten-up names with disruptive growth traits could be rewarding.
Some exchange traded funds provide market participants with a variety of equities. Enter the Goldman Sachs Innovate Equity ETF (EASY). EASY The Solactive Innovative Global Equity Index holds 468 stocks – a deep enough benchmark to ensure that investors are exposed to a strong balance sheet.
An disruptor in the EASY portfolio is crypto exchange giant Coinbase (NASDAQ:COIN). The stock is being punished this year amid the “crypto winter,” and while that is a test for digital assets and crypto-corrected equities, it is not necessarily long-term thesis for assets such as Coinbase is dead.
“Confidence in the platform is still required to support an investment in COIN shares, but we note that the company is incredibly liquid on the block in uncertain time COIN The market is still very challenging and potentially even a small market in the marketplace, according to JMP Securities.
Regarding individual stocks with sturdy balance sheets, EASY has a child of those as well, including Google parent Alphabet (NASDAQ:GOOGand semiconductor maker Micron Technology (NASDAQ: MU). UBS analyst Tim Arcuri recently reiterated Micron as a top pick.
“Amid macro concerns, we believe investors continue to overlook several key factors,” Arcuri wrote. “Even though market weakness in PC / smartphones is weighing somewhat on near term DRAM ASPs, we see very strong pricing heading into C2023 as the industry growth in bit supply is set to compress significantly. ”
As for Alphabet, its cash percent is currently 7.2%, and its cash flow is expected to surge over the next two years, according to CNBC.
Other companies with impressive balance sheets that also reside in EASY include Arista Networks (NASDAQ:ANETand blue chip pharmaceuticals behemoths Johnson & Johnson (NYSE:JNJand Merck (NYSE:MRK), both of which are members of the Dow Jones Industrial Average.
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