2 stocks to buy in October and hold forever

Better-than-expected corporate earnings and stubbornly high inflation numbers could be enough to convince the Fed to continue its aggressive rate hikes, dampening market sentiment. With market volatility expected to continue for the foreseeable future, it might make sense to buy fundamentally strong Comcast (CMCSA) and Energy Transfer (ET) and hold them forever. Keep reading….

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As markets appear temporarily supported by better-than-expected earnings and the easing of turmoil in the UK, the latest inflation data worry investors. The warmer-than-expected jobs and inflation reports should allow the Fed to respond with a fourth consecutive rate hike of 75 basis points at its meeting next month. Therefore, the stock market will likely remain under pressure.

“When you’re in a bear market, to see meaningful upside moves for equities, you also need to see significant movement in bond markets. You need yields to drop significantly,” said Michael Antonelli, managing director and market strategist at Baird.

With a soft landing for the economy increasingly looking like an unlikely scenario, markets are set to experience heightened volatility in the months ahead. Therefore, loading stocks of companies with fundamental strength, pricing power, attractive dividend records and long-term growth would be the best strategy to generate stable returns.

Therefore, we think it might make sense to buy fundamentally strong stocks, Comcast Corporation (CMCSA) and Energy Transfer LP (ET), and hold them forever.

Comcast Corporation (CMCSA)

CMCSA is a global media and technology company. It operates through three segments: Cable Communications; Media; studios; Amusement park; and Sky.

On September 21, 2022, CMCSA announced that it is working with Samsung to provide 5G Radio Access Network (RAN) solutions that can be used to improve 5G connectivity for Xfinity Mobile and Comcast Business Mobile customers in Comcast service areas. The company expects this to deliver more next-gen apps and services to its customers seamlessly.

On September 14, CMCSA announced an extension of its share repurchase authorization to a total of $20.0 billion, with $9 billion in shares repurchased to date. This demonstrates the financial strength of the company and its commitment to increasing shareholder value.

On July 28, CMCSA declared its quarterly dividend of $0.27 per share on the company's common stock, payable October 26, 2022. The company pays $1.08 in dividend annually, which translates to a 3.5% return at the current price. . This compares favorably to the 4-year average dividend yield of 2.02%.

CMCSA's dividend payouts have grown over the past five years at a CAGR of 11.7%.

For the second quarter of fiscal 2022 ended June 30, CMCSA's revenue increased 5.1% year-on-year to $30.02 billion. During the same period, the company's adjusted EBITDA increased 10.1% year-on-year to $9.83 billion, while its adjusted net income increased 14.3% year-on-year to reach $4.51 billion. As a result, its Adjusted EPS increased 20.2% year over year to $1.01.

Analysts expect CMCSA's revenue to grow 4.5% year-on-year to $121.57 billion in the current fiscal year, ending Dec. 31, 2022, while its EPS is expected to increase 11% year-on-year to $3.59 for the same period. Additionally, the company has an impressive earnings track record, beating consensus EPS estimates in each of the past four quarters.

The stock has gained 7.2% over the past five days to close the last trading session at $30.75.

CMCSA's POWR ratings reflect its promising outlook. It has an overall rating of A, which equates to a Strong Buy in our proprietary ratio...