5 Stocks Bucking the Current Downtrend

Bad news is everywhere and investors are scared.

Crude oil prices have slumped over 25% since the start of the year on fears of oversupply, and we're only in January. Global indices such as the Japan's Nikkei and London's FTSE have lost over 20% from recent peaks, officially entering a bear market.

But there are some stocks that don't follow the market on its way down. They have been among the few bright spots in the recent carnage. All of them have made moves that would suggest a solid-or-better performance in the coming months -- if not beyond. In a few cases, conditions have become more favorable in their industries. 

Macy's
(M)

Former retail powerhouse Macy's ended 2015 47% lower than its start, but this year the stock is smartly up 11%.

It has been known for a while now that the retail giant is facing immense pressure from online retailers such as Amazon, as shoppers increasingly move their purchases from brick-and-mortar stores to online channels. This had led Macy's to close down 40 stores at the start of this year.

However, what is mainly driving the stock up in the falling market is David Einhorn led hedge fund Greenlight Capital's investment in the retailer. Einhorn expects a private equity firm to join hands with a real estate investment trust (REIT) to buy Macy's, thus unlocking more value for stakeholders. While Macy's was opposed to becoming a REIT earlier, it is now looking at its real estate assets more professionally, says CNBC.

What makes Macy's truly attractive right now is its 3.7% dividend yield. Further, at a payout ratio of just 34%, there is plenty of upside for dividend growth.

M Chart M data by YCharts

If you liked this article you might like

Walmart Upping Current Worker Hours Instead of Hiring for the Holidays

Wall Street Overlooks Trump's North Korea Threats to Hit New Records

Best Buy Disappointment Sends Retailers Into a Spin

Stocks on Track for Records Even as Trump Goes After North Korea

Cramer: How to Avoid Being Amazon Roadkill