The stock market is rallying on hopes that the spread of COVID-19 is starting to fade. Beneath the surface, some stocks have been doing just fine, observes Eddy Elfenbein, editor of Growth Stock Advisor.

Walmart (WMT), the largest retailer in the world, has been an invaluable resource for consumers during the shutdown. The stores have reduced hours and implemented rules on how many shoppers can be in a store. Still, customers are lining up each morning to get in.

Fans of WMT know that the stock is less a retail company than a massive inventory management operation. Few businesses (or even governments) have the reach and influence of Walmart. As a result, WMT’s stock has held up much better than the rest of the market. Look for another impressive earnings report in early May.

Dollar General (DG) has been very popular in socially distant America. The company has limited its hours and, like Walmart, has instituted a seniors-only shopping period. Business is booming. Recently, DG reported its thirtieth year in a row of same-store sales growth.

Crucially, many DG stores are in rural America, and 75% of Americans live within seven miles of a Dollar General. This is a great example of a store that’s helping vulnerable Americans get through a difficult time. Look for the next earnings report sometime around Memorial Day.

Thanks to the global shutdown, lots of industries have been devastated, but. it appears that Betty Crocker is surviving the quarantine just fine, thank you very much. The same came be said for Cheerios, Yoplait, Lucky Charms and Haagen-Dazs, all General Mills (GIS) brands.

GIS which is holding up very well, is a great example of a defensive stock, meaning its business isn’t heavily tied to the business cycle. Folks will buy Cheerios in good times and bad.

If anything, some consumers ave steered toward comfort food. General Mills won’t report until late June, but Wall Street expects earnings to rise from 83 cents per share to 96 cents per share.

Pepsi (PEP) is another good example of a defensive stock that won’t merely survive but thrive in these difficult times. Remember that Pepsi is a lot more than soda: the company also owns Frito-Lay, Gatorade, and Tropicana.

Pepsi recently said it will hire 6,000 full-time workers and provide enhanced benefits to U.S. workers. I also like that PEP is moving to stay ahead of its competition. Last month, the company announced it is buying Rockstar Energy for $3.85 billion.

My #1 pick of the bunch, Colgate-Palmolive (CL). Many investors are too quick to dismiss “boring” investments. I admit that a toothpaste company may not sound like a big winner, but the facts say otherwise.

Of course, CL is a lot more than toothpaste. The company owns an impressive stable of household brands. Since the stock’s low 45 years ago, the shares have gained an amazing 240-fold. If you include dividends, then Colgate is up more than 840-fold, an average annualized gain of 16%.

Colgate-Palmolive has also increased its dividend ever year for 58 straight years. Plus, the current yield is just over 2.5% — is a pretty good deal, especially in an era of 0% interest rates.

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