Sep. 29 at 7:53 PM
Highflying AI stocks are looking risky, so investors may want to diversify into non-tech names. The Nasdaq, heavily weighted in AI-driven companies, has slipped 0.8% over the past week as some investors take profits on high-flying stocks like Microsoft, Oracle, Meta, Alphabet, and Amazon.
Stocks with low correlation to AI, up at least 10% in the past six months, are appealing. Examples include companies showing strong recent performance that could continue even if AI stocks falter.
Some top performers recently hitting records are Johnson & Johnson, McKesson, Cencora, eBay, and Welltower. Others with potential for further gains include Lockheed Martin, CVS Health, D.R. Horton, FirstEnergy, and Dollar General.
Altria, the $ 110B cigarette maker, is shifting toward non-tobacco products like nicotine pouches, boosting oral product sales 6% year-over-year. Its strong free cash flow and dividend (around 6.4% yield) make it attractive.
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