Where’s the Safe Play in This Market? Wells Fargo & Company (WFC), ConocoPhillips (COP), Intel Corporation (INTC)

As for Wells Fargo, I like this stock strictly on the premise that it has a lower beta than JP Morgan.  Beta is the measure of a stocks’ volatility relative to the market: a beta of 1 indicates that the stock moves perfectly with the market, below 1 equals less volatility, and above means more volatility.  Wells Fargo & Company (NYSE:WFC) has a beta rating of 1.21, which is much better in comparison to JP Morgans’ rating of 1.65.  The two banks are virtually identical, sharing the same market caps and operating margins, though JP Morgan edges out Wells Fargo in revenue–but then again, they win the battle for negative press, too, with debacles like the ‘London Whale.’

There is a lot of opportunity in the energy sector right now, and I think the market is going to catch on and pick up the slack, so bargain hunters should move with a purpose.  ConocoPhillips (NYSE:COP) boasts a low P/E ratio of 8.67, a juicy dividend yield of 4.6%, and thanks to a recent pullback trades at a relative discount, making it especially attractive for an energy play.  During the investor conference last month the CEO, Ryan Lance, outlined his vision for the company after the recent spin off of Phillips 66.  His goal is to turn the company into what he calls a “new class of assets,” with a primary focus on becoming the industry leader in value for investors by increasing margins and continuing the company’s legacy of returning cash to investors.  Maximizing shareholder returns through growth and dividends sounds like a pretty sound business model to me.

As for agriculture, I like Archer Daniels Midland Company (NYSE:ADM). This stock is off to a great start this year and has been getting some attention from analysts on Wall Street.  It offers some opportunities for capital gains and also pays a dividend yield of 2.42%.  After weathering a disappointing corn crop yield last summer the company seems to be diversified enough in its operations to remain profitable into the future.  More importantly, the company operates in the quintessential ‘politics proof’ sector of the economy, which will insulate investors from negative macro-economic developments.

Remember, when building a defensive portfolio boring is good, and diversification is essential.

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The article Where’s the Safe Play in This Market? originally appeared on Fool.com and is written by Brian Jordan.

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