Market Sell-Off: Can Buying These 3 "Safe" Stocks Today Set You Up for Life?

The U.S. equity market has had a solid run in the past two years, buoyed by a steadily improving macroeconomic environment and strong uptake of artificial intelligence technologies. The benchmark S&P 500 index climbed almost 53% in the past two years.

However, at least for some time, the party seems to be over. U.S. stocks have been falling in the past few weeks on fears of a burgeoning trade war and rising economic uncertainty.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Yet, this period can also provide a rare opportunity for astute investors to pick stakes in high-quality and financially strong stocks, which some may deem as "safe" -- or at least safer -- while trading at reasonable levels.

These stocks fit the bill and could prove to be exceptional long-term buys.

Broadcom

Semiconductor giant Broadcom (NASDAQ: AVGO) has become a smart pick in 2025, especially since shares are currently down about 21% from their 52-week high of $249.3 on Dec. 16, 2024.

Broadcom came out with strong results for its fiscal 2025's first-quarter (ended Feb. 2) on March 6, with revenue and earnings surpassing consensus estimates. Revenue was up 25% year over year to $14.9 billion, and adjusted EBITDA jumped 41% to $10.1 billion. The company also generated free cash flows of $6 billion, translating into a free cash flow margin of 40%.

Not surprisingly, the AI business is Broadcom's major growth engine. In the first quarter, Broadcom's AI business generated revenue of $4.1 billion, up 77% year over year and ahead of management's expectation of $3.8 billion. Management has guided the AI business to record revenue of $4.4 billion in the second quarter, implying a 44% year-over-year increase.

Three major hyperscalers use the company's custom AI chips and networking infrastructure solutions to build optimal hardware for their models and systems. Management is projecting its three key hyperscaler clients to generate a serviceable addressable market (SAM) worth $60 billion to $90 billion in fiscal 2027. Plus, four more hyperscalers are already engaging with the company. Hence, Broadcom seems well-positioned to capture a significant share of the global AI infrastructure spending, estimated to exceed $200 billion annually by 2028.

Revenue for the overall semiconductor solutions segment, which includes the AI business, grew 11% year over year to $8.2 billion in Q1. Furthermore, the company's infrastructure software segment revenue was also up by 47% to $6.7 billion. Accounting for nearly 45% of the company's total revenue, this business has helped improve Broadcom's revenue visibility and margins.

Despite its many strengths, this diversified company is trading at a forward price-to-earnings (P/E) multiple of 30, far lower than its historical five-year average of 69. Hence, considering the strengths of Broadcom and its corrected valuation, this may be a good time for long-term investors to add the stock to their portfolio.

Berkshire Hathaway

Shares of legendary investor Warren Buffett's holding company Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) are up 15.9% in 2025.

Berkshire reported a solid performance in 2024, with operating earnings soaring 27% year over year to $47.4 billion . This is impressive, especially since 53% of its 189 operating businesses reported a drop in earnings in this timeframe. The insurance business is a key catalyst. It recorded a nearly 66% jump in underwriting earnings to $9 billion, and a 42.8% rise in investment income to $13.7 billion.

Berkshire Hathaway carried cash of $334.2 billion at the end of 2024, giving the company flexibility to pick up high-quality assets at a discount. While Warren Buffett highlighted that Berkshire Hathaway's marketable equity portfolio declined year over year in 2024, the company's stake in non-quoted controlled equities increased in the same period.

Berkshire has also increased investment in five Japanese trading companies over the past six years. The aggregate cost of these Japanese investments was $13.8 billion, while their market value was $23.5 billion at the end of 2024. With Berkshire focused on further increasing ownership in these assets, the company is now aiming to strategically expand its international market portfolio.

Considering its balanced growth profile and robust financials, Berkshire Hathaway seems like a compelling investment for the long-term investor.

Eli Lilly

The primary driver of Eli Lilly's (NYSE: LLY) exceptional growth in the past couple of years has been the rapid adoption of its breakthrough GLP-1 receptor agonist therapies (Mounjaro for type 2 diabetes and Zepbound for chronic weight management and obstructive sleep apnea in adults with obesity).

The global GLP-1 market is expected to grow from $49.3 billion in 2024 to $157.5 billion by 2035, driven by the increasing prevalence of diseases such as obesity and type 2 diabetes. Thanks to their superior efficacy compared to competing therapies, Mounjaro and Zepbound seem well-positioned to capture a significant share of this rapidly growing market.

Mounjaro's sales were $11.5 billion in 2024, up 124% year over year. Zepbound also contributed $4.9 billion in 2024. These drugs accounted for 36.5% of Eli Lilly's 2024 revenue.

Eli Lilly has committed over $23 billion to expand the manufacturing capacity for its drugs, particularly GLP-1 therapies, either organically or inorganically. These investments are bearing fruit, as is evident from the company hitting its production target of making 1.5 times more saleable doses of the GLP-1 therapies in the second half of 2024 compared to the same period in the prior year.

Besides GLP-1 therapies, Eli Lilly's other drugs, such as Verzenio, Jardiance, and Taltz also demonstrated robust growth in 2024, highlighting the strength of its diversified drug portfolio.

Eli Lilly demonstrated impressive performance in 2024, with revenue growing 32% to $45 billion year over year, and net income jumping 106% year over year to $10.6 billion.

Despite its many successes, Eli Lilly trades at a forward P/E ratio of 35.6, lower than its historical five-year average of 74.8. Hence, it makes sense for long-term investors to consider buying Eli Lilly's stock now.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $305,226!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $41,382!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $517,876!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Continue »

*Stock Advisor returns as of March 18, 2025

Manali Pradhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.