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Zacks Investment Ideas feature highlights: Johnson & Johnson, AT&T, Google, eBay and Amazon

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For Immediate Release

Chicago, IL- September 25, 2015 - Today, Zacks Investment Ideas feature highlights Features: Johnson & Johnson ( JNJ ), AT&T ( T ), Google ( GOOGL ), eBay ( EBAY ) and Amazon ( AMZN ).

Crash-Proof Stocks to Buy Now

Stock market crashes happen, there is just no other way to put it. They can be super painful to your portfolio, but not all stocks getting treated the same in the massive sell offs. The stocks that make out the best (go down the least) generally have a lot of cash in the bank.

When I searched for the stocks with the biggest cash balances I got a bunch of stocks that were the opposite of what I wanted. The money center banks actually have a ton of cash on the books, but the simplicity of this idea is lost on the banking sector as it doesn't dig into the liabilities too.

For this exercise, I am not going to look at any financial stock. That includes insurance stocks and a certain government agency that has a market cap of about $2.6B and cash & marketable securities on the books of $113 billion. It is also known as Freddie's sister.

Zacks Rank

Now just listing stock that have very large cash hoards doesn't really help anyone. There is actually a better chance of the market not crashing - which should be common sense.

The idea is that these stocks were screened against the Zacks Rank, and I am only listing the stocks that are Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy). So while Apple has plenty of greenbacks, it didn't make the list as it currently is a Zacks Rank #3 (Hold).

So if a crash is coming, these stocks won't get hit as hard. If there is no crash then these stocks enjoy the benefit of rising earnings estimate revisions.

Johnson & Johnson

Johnson & Johnson ( JNJ ) is a Zacks Rank #2 (Buy) stock that has $34B in cash and market securities on the balance sheet at the end of the most recent quarter. The company has market capitalization of $257B, so about 13% of that is cash and market securities. A 3.3% dividend yield is the second highest on this list.

AT&T

AT&T ( T ) is also a Zacks Rank #2 (Buy) stock with about $20B in cash and market securities. Speaking of dividends, T comes in first place by paying a hefty 5.8% yield, but at this time it only seems prudent to remind readers that the more a bond pays in yield the lower quality it generally is. T has a market cap approaching $200B, but is just shy of that level.

Google

Google ( GOOGL ) is also a Zacks Rank #2 (Buy) and I feel like I need to say that there will be one stock that has the highest Zacks Rank on this list. GOOGL doesn't pay a dividend, and the other stocks on this list don't as well. GOOGL has just shy of $70B on the books at the end of the last quarter.

eBay

eBay ( EBAY ) is a Zacks Rank #2 (Buy) stock that has $10.5B in cash and market securities on the balance sheet. It feels like there should be an asteris for EBAY as the PayPal spin was probably a big reason it made it on the list. The fact remains that analysts have been increasing estimates for the stock. The detailed estimates page shows that the while estimates have really fallen from 90 days ago, they have increased in the last 30 days and in this market that is good enough to get you a better rank.

Amazon

Amazon ( AMZN ) is the Zacks Rank #1 (Strong Buy) stock for this list. Surprisingly it was the Bull of the Day just the other day. The company has $14B in cash on the books, and I love it as a long term play. In the bull of the day I mention that I was long options on this stock, but that changed yesterday after a meeting with our market timer gave me the chills. Kevin Cook , the editor of our Market Timer newsletter suggested that we will probably retest recent lows and that put some fear in me. AMZN recently bottomed out at $466, so I punted on my call position and am hoping I can get back in at a lower strike and a lower price before the next earnings.

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JOHNSON & JOHNS (JNJ): Free Stock Analysis Report

AT&T INC (T): Free Stock Analysis Report

GOOGLE INC-CL A (GOOGL): Free Stock Analysis Report

EBAY INC (EBAY): Free Stock Analysis Report

AMAZON.COM INC (AMZN): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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