Bulletin
Investor Alert

New York Markets Close in:

Need to Know Archives | Email alerts

Sept. 22, 2022, 9:05 a.m. EDT

13 stocks whose built-in advantages shield them from the economic uncertainty pervading the market

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    S&P 500 Index (SPX)
  • X
    Air Products & Chemicals Inc. (APD)
  • X
    Autodesk Inc. (ADSK)

or Cancel Already have a watchlist? Log In

By Barbara Kollmeyer

Investors who have been unsure about the Fed’s no-mercy inflation policy, have likely got the message now.

And as markets adjust to the prospect of more hikes from a central bank that plans to “keep at it until it’s done,” with threats of an escalating war in Europe and energy crisis hovering in the background, the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.22% may struggle to revisit the summer nadir.

“Given today’s [Wednesday’s] downside reversal and a continued lack of any capitulatory signals, we think the path to the June lows (3,640) might be faster than many anticipate,” BTIG’s chief market technician Jonathan Krinsky tells clients, though he dangles some hope.

“The bad news is we are still in one of the weakest seasonal windows of the year, especially in a midterm year. The good news is that it quickly reverses by mid-October. We think we test or break the June lows before then, which should set up a better entry point for a year-end rally,” said Krinsky.

Investors would be forgiven for feeling like they’ve been backed into a corner right now when it comes to investment options. That brings us to our call of the day from Credit Suisse, which offers a “protective moat for uncertain times” via dozens of companies with solid business models.

Note the bank is currently recommending an underweight stance on equities owing to “potential downside risk to 2023 earnings estimates to the tune of 15% to 20% for the S&P 500.” They see a “highly uncertain” growth outlook caused by aggressive central bank responses to sticky wage growth and Europe’s energy crisis. Strategists expect U.S. growth to reach just 0.9% in 2023, with a 0.2% contraction in the eurozone.

Still, Richard Kersley, head of global equity research and his team asked analysts across several regions to “identify companies whose earnings may not be immune to, but should be better shielded from economic uncertainty thanks to the high barriers to entry that surround their businesses.“

“Stocks selected reflect examples of companies that have shown a superior ability to innovate, their first mover advantage or simply a scale advantage that has developed a market leading position and with it stronger pricing power,” he said.

And rather than limiting picks to defensive sectors or styles, they cast a wide net and come up with 35 outperform-rated stocks with an “economic moat across regions.” Bolded names represent those with above-consensus earnings estimates and target prices, as well most anti-consensus calls.

Americas: Air Products /zigman2/quotes/201523430/composite APD +0.64% , Autodesk /zigman2/quotes/209828392/composite ADSK +2.01% , McDonald’s /zigman2/quotes/203508018/composite MCD +0.12% , Microsoft /zigman2/quotes/207732364/composite MSFT -0.77% , NextEra /zigman2/quotes/200558509/composite NEE -0.47% , PPL /zigman2/quotes/207772352/composite PPL -0.29% , Reynolds /zigman2/quotes/216150988/composite REYN +0.91% , Hershey /zigman2/quotes/202765576/composite HSY -1.57% , Thomson Reuters /zigman2/quotes/203550191/composite TRI -0.34% , Union Pacific /zigman2/quotes/209717171/composite UNP -0.86% , Visa /zigman2/quotes/203660239/composite V -0.10% .

EMEA: Air Liquide /zigman2/quotes/206822858/delayed FR:AI +0.94% , ASML /zigman2/quotes/210293876/composite ASML +0.11% /zigman2/quotes/206208657/delayed NL:ASML +3.76% , Assa Abloy /zigman2/quotes/209593756/delayed SE:ASSA.B +1.51% Coloplast /zigman2/quotes/206586833/delayed DK:COLO.B +3.14% , Diageo /zigman2/quotes/205611832/delayed UK:DGE +1.00% /zigman2/quotes/208129584/composite DEO +2.12% , Edenred /zigman2/quotes/204329243/delayed FR:EDEN +0.65% , Experian /zigman2/quotes/210252954/delayed UK:EXPN +1.69% Haleon /zigman2/quotes/236012088/delayed UK:HLN +3.12% , Legal & General /zigman2/quotes/201125471/delayed UK:LGEN +1.47% , LSEG /zigman2/quotes/206625606/delayed UK:LSEG +0.27% National Grid /zigman2/quotes/208805676/delayed UK:NG +1.03% , Reckitt Benckiser /zigman2/quotes/206856088/delayed UK:RKT +1.51% , Schneider /zigman2/quotes/200216351/delayed FR:SU +1.58% , Sika /zigman2/quotes/200712565/delayed CH:SIKA +3.63% , Smurfit Kappa /zigman2/quotes/208768615/delayed IE:SK3 +1.93% Wolters Kluwer /zigman2/quotes/207940915/delayed NL:WKL -0.10% .

Asia Pacific: AIA /zigman2/quotes/203565558/delayed HK:1299 +2.36% , CP All PCL TH:CPALL +1.15% , CTOS Digital /zigman2/quotes/227833438/delayed MY:5301 +0.70% , Hindustan Unilever /zigman2/quotes/206253666/delayed IN:500696 -0.65% , Intl Container /zigman2/quotes/207125957/delayed PH:ICT -4.00% , PT Bank Mandiri (Persero) Tbk , Samsung Biologics /zigman2/quotes/206016987/delayed KR:207940 -0.34% , Samsung Electronics /zigman2/quotes/209800866/delayed KR:005930 +0.64%

Check out Day two of MarketWatch’s Best New Ideas in Money Festival. It’s not too late to sign up, and here’s an interview you may have missed with legendary investors Ray Dalio and Carl Icahn .

The markets

Stock futures /zigman2/quotes/209948968/delayed ES00 -0.21% /zigman2/quotes/210219788/delayed NQ00 -0.18% /zigman2/quotes/210407078/delayed YM00 -0.86% are back and forth, but now in the green , with 2-year Treasury yields /zigman2/quotes/211347045/realtime BX:TMUBMUSD02Y -1.15% at the highest since 2008 . The dollar index /zigman2/quotes/210598269/delayed DXY -1.02% was hovering at 2002 highs, until the Bank of Japan intervened for the first time in 25 years after leaving key interest rates unchanged. Oil prices /zigman2/quotes/209723049/delayed CL00 +1.84% are higher.

Asian equities /zigman2/quotes/210597971/delayed JP:NIK +0.92% /zigman2/quotes/210598030/delayed HK:HSI +0.75% stumbled and the Korean won /zigman2/quotes/210561794/realtime/sampled USDKRW +0.1573% hit its lowest in 13 years. Europe equities /zigman2/quotes/210599654/delayed XX:SXXP +0.89% aren’t faring much better.

/zigman2/quotes/210599714/realtime
US : S&P US
4,071.16
-8.95 -0.22%
Volume: 0.00
Dec. 1, 2022 11:59a
loading...
/zigman2/quotes/201523430/composite
US : U.S.: NYSE
$ 312.16
+2.00 +0.64%
Volume: 313,782
Dec. 1, 2022 11:58a
P/E Ratio
30.89
Dividend Yield
2.08%
Market Cap
$68.81 billion
Rev. per Employee
$579,881
loading...
/zigman2/quotes/209828392/composite
US : U.S.: Nasdaq
$ 206.00
+4.05 +2.01%
Volume: 593,872
Dec. 1, 2022 11:59a
P/E Ratio
72.63
Dividend Yield
N/A
Market Cap
$43.59 billion
Rev. per Employee
$387,294
loading...
/zigman2/quotes/203508018/composite
US : U.S.: NYSE
$ 273.12
+0.33 +0.12%
Volume: 742,532
Dec. 1, 2022 11:59a
P/E Ratio
34.42
Dividend Yield
2.23%
Market Cap
$199.80 billion
Rev. per Employee
$116,326
loading...
/zigman2/quotes/207732364/composite
US : U.S.: Nasdaq
$ 253.18
-1.96 -0.77%
Volume: 10.71M
Dec. 1, 2022 11:59a
P/E Ratio
27.30
Dividend Yield
1.07%
Market Cap
$1901.93 billion
Rev. per Employee
$918,891
loading...
/zigman2/quotes/200558509/composite
US : U.S.: NYSE
$ 84.30
-0.40 -0.47%
Volume: 1.91M
Dec. 1, 2022 11:59a
P/E Ratio
43.55
Dividend Yield
2.02%
Market Cap
$168.31 billion
Rev. per Employee
$1.81M
loading...
/zigman2/quotes/207772352/composite
US : U.S.: NYSE
$ 29.44
-0.09 -0.29%
Volume: 1.13M
Dec. 1, 2022 11:59a
P/E Ratio
31.08
Dividend Yield
3.06%
Market Cap
$21.74 billion
Rev. per Employee
$1.27M
loading...
/zigman2/quotes/216150988/composite
US : U.S.: Nasdaq
$ 32.25
+0.29 +0.91%
Volume: 87,504
Dec. 1, 2022 11:57a
P/E Ratio
26.33
Dividend Yield
2.85%
Market Cap
$6.71 billion
Rev. per Employee
$669,643
loading...
/zigman2/quotes/202765576/composite
US : U.S.: NYSE
$ 231.47
-3.70 -1.57%
Volume: 269,805
Dec. 1, 2022 11:59a
P/E Ratio
30.33
Dividend Yield
1.78%
Market Cap
$48.23 billion
Rev. per Employee
$531,495
loading...
/zigman2/quotes/203550191/composite
US : U.S.: NYSE
$ 117.33
-0.39 -0.34%
Volume: 257,094
Dec. 1, 2022 11:59a
P/E Ratio
60.55
Dividend Yield
1.52%
Market Cap
$56.49 billion
Rev. per Employee
$269,344
loading...
/zigman2/quotes/209717171/composite
US : U.S.: NYSE
$ 215.57
-1.86 -0.86%
Volume: 768,045
Dec. 1, 2022 11:59a
P/E Ratio
19.22
Dividend Yield
2.41%
Market Cap
$133.68 billion
Rev. per Employee
$816,853
loading...
/zigman2/quotes/203660239/composite
US : U.S.: NYSE
$ 216.79
-0.21 -0.10%
Volume: 2.61M
Dec. 1, 2022 11:59a
P/E Ratio
31.67
Dividend Yield
0.83%
Market Cap
$447.39 billion
Rev. per Employee
$1.11M
loading...
/zigman2/quotes/206822858/delayed
FR : France: Euronext Paris
139.52
+1.30 +0.94%
Volume: 762,140
Dec. 1, 2022 5:39p
P/E Ratio
27.66
Dividend Yield
1.89%
Market Cap
€72.17 billion
Rev. per Employee
€401,826
loading...
/zigman2/quotes/210293876/composite
US : U.S.: Nasdaq
$ 608.77
+0.65 +0.11%
Volume: 728,165
Dec. 1, 2022 11:59a
P/E Ratio
40.62
Dividend Yield
0.92%
Market Cap
$231.18 billion
Rev. per Employee
$711,973
loading...
/zigman2/quotes/206208657/delayed
NL : Netherlands: Euronext Amsterdam
582.20
+21.10 +3.76%
Volume: 842,105
Dec. 1, 2022 5:36p
P/E Ratio
41.76
Dividend Yield
1.11%
Market Cap
€224.53 billion
Rev. per Employee
€660,688
loading...
/zigman2/quotes/209593756/delayed
SE : Sweden: Stockholm
kr 241.90
+3.60 +1.51%
Volume: 1.15M
Dec. 1, 2022 5:29p
P/E Ratio
21.32
Dividend Yield
1.74%
Market Cap
kr264.70 billion
Rev. per Employee
kr2.23M
loading...
/zigman2/quotes/206586833/delayed
DK : Denmark: OMX
kr. 859.80
+26.20 +3.14%
Volume: 310,879
Dec. 1, 2022 4:59p
P/E Ratio
38.89
Dividend Yield
2.33%
Market Cap
kr.177.39 billion
Rev. per Employee
kr.1.55M
loading...
/zigman2/quotes/205611832/delayed
UK : U.K.: London
3,846.00 p
+38.00 +1.00%
Volume: 1.97M
Dec. 1, 2022 4:35p
P/E Ratio
27.52
Dividend Yield
1.98%
Market Cap
£86.49 billion
Rev. per Employee
£541,074
loading...
/zigman2/quotes/208129584/composite
US : U.S.: NYSE
$ 190.51
+3.96 +2.12%
Volume: 331,910
Dec. 1, 2022 11:59a
P/E Ratio
25.53
Dividend Yield
1.89%
Market Cap
$103.00 billion
Rev. per Employee
$719,147
loading...
/zigman2/quotes/204329243/delayed
FR : France: Euronext Paris
52.82
+0.34 +0.65%
Volume: 515,700
Dec. 1, 2022 5:35p
P/E Ratio
39.84
Dividend Yield
1.70%
Market Cap
€13.06 billion
Rev. per Employee
€189,717
loading...
/zigman2/quotes/210252954/delayed
UK : U.K.: London
2,954.00 p
+49.00 +1.69%
Volume: 926,638
Dec. 1, 2022 4:35p
P/E Ratio
37.01
Dividend Yield
1.47%
Market Cap
£26.46 billion
Rev. per Employee
£223,482
loading...
/zigman2/quotes/236012088/delayed
UK : U.K.: London
£ 292.95
+8.85 +3.12%
Volume: 10.96M
Dec. 1, 2022 4:35p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
£26.24 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/201125471/delayed
UK : U.K.: London
255.30 p
+3.70 +1.47%
Volume: 6.71M
Dec. 1, 2022 4:35p
P/E Ratio
7.51
Dividend Yield
7.33%
Market Cap
£14.94 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/206625606/delayed
UK : U.K.: London
8,270.00 p
+22.00 +0.27%
Volume: 426,165
Dec. 1, 2022 4:35p
P/E Ratio
48.62
Dividend Yield
1.23%
Market Cap
£41.83 billion
Rev. per Employee
£316,495
loading...
/zigman2/quotes/208805676/delayed
UK : U.K.: London
1,025.00 p
+10.50 +1.03%
Volume: 5.28M
Dec. 1, 2022 4:35p
P/E Ratio
11.95
Dividend Yield
5.03%
Market Cap
£37.13 billion
Rev. per Employee
£715,281
loading...
/zigman2/quotes/206856088/delayed
UK : U.K.: London
6,038.00 p
+90.00 +1.51%
Volume: 906,644
Dec. 1, 2022 4:35p
P/E Ratio
14.21
Dividend Yield
2.89%
Market Cap
£42.57 billion
Rev. per Employee
£258,570
loading...
/zigman2/quotes/200216351/delayed
FR : France: Euronext Paris
141.12
+2.20 +1.58%
Volume: 751,272
Dec. 1, 2022 5:35p
P/E Ratio
25.27
Dividend Yield
2.05%
Market Cap
€77.57 billion
Rev. per Employee
€211,626
loading...
/zigman2/quotes/200712565/delayed
CH : Switzerland: SWX
CHF 245.60
+8.60 +3.63%
Volume: 374,062
Dec. 1, 2022 5:30p
P/E Ratio
33.91
Dividend Yield
1.18%
Market Cap
CHF36.43 billion
Rev. per Employee
CHF371,555
loading...
/zigman2/quotes/208768615/delayed
IE : Ireland: Dublin
34.89
+0.66 +1.93%
Volume: 1.03M
Dec. 1, 2022 4:32p
P/E Ratio
9.60
Dividend Yield
3.66%
Market Cap
€8.87 billion
Rev. per Employee
€246,104
loading...
/zigman2/quotes/207940915/delayed
NL : Netherlands: Euronext Amsterdam
105.10
-0.10 -0.10%
Volume: 648,256
Dec. 1, 2022 5:35p
P/E Ratio
33.13
Dividend Yield
1.58%
Market Cap
€26.56 billion
Rev. per Employee
€261,694
loading...
/zigman2/quotes/203565558/delayed
HK : Hong Kong
$ 80.35
+1.85 +2.36%
Volume: 39.02M
Dec. 1, 2022 4:08p
P/E Ratio
34.60
Dividend Yield
1.85%
Market Cap
$925.77 billion
Rev. per Employee
N/A
loading...
TH : Thailand: Bangkok
฿ 65.75
+0.75 +1.15%
Volume: 44.19M
Dec. 1, 2022 12:00a
P/E Ratio
37.09
Dividend Yield
0.91%
Market Cap
฿583.90 billion
Rev. per Employee
฿12.45M
loading...
/zigman2/quotes/227833438/delayed
MY : Malaysia
RM 1.43
+0.01 +0.70%
Volume: 20.99M
Dec. 1, 2022 4:44p
P/E Ratio
46.89
Dividend Yield
N/A
Market Cap
RM3.28 billion
Rev. per Employee
RM657,571
loading...
/zigman2/quotes/206253666/delayed
IN : India: Bombay
2,662.65
-17.50 -0.65%
Volume: 81,038
Dec. 1, 2022 3:58p
P/E Ratio
64.85
Dividend Yield
1.35%
Market Cap
₹6297.26 billion
Rev. per Employee
₹27.78M
loading...
/zigman2/quotes/207125957/delayed
PH : Philippines: Manila
196.80
-8.20 -4.00%
Volume: 2.61M
Dec. 1, 2022 2:59p
P/E Ratio
14.04
Dividend Yield
3.34%
Market Cap
₱415.00 billion
Rev. per Employee
₱12.33M
loading...
/zigman2/quotes/206016987/delayed
KR : S. Korea: KRX
884,000
-3,000 -0.34%
Volume: 48,256
Dec. 1, 2022 3:30p
P/E Ratio
119.94
Dividend Yield
N/A
Market Cap
₩63131.34 billion
Rev. per Employee
₩626.44M
loading...
/zigman2/quotes/209800866/delayed
KR : S. Korea: KRX
62,600.00
+400.00 +0.64%
Volume: 16.63M
Dec. 1, 2022 3:30p
P/E Ratio
10.16
Dividend Yield
2.31%
Market Cap
₩417319.86 billion
Rev. per Employee
₩2.72B
loading...
/zigman2/quotes/209948968/delayed
US : U.S.: CME
$ 4,072.75
-8.50 -0.21%
Volume: 1.05M
Dec. 1, 2022 10:49a
loading...
/zigman2/quotes/210219788/delayed
US : U.S.: CME
$ 12,020.75
-21.50 -0.18%
Volume: 398,657
Dec. 1, 2022 10:49a
loading...
/zigman2/quotes/210407078/delayed
US : U.S.: CBOT
$ 34,302.00
-297.00 -0.86%
Volume: 155,300
Dec. 1, 2022 10:49a
loading...
/zigman2/quotes/211347045/realtime
add Add to watchlist BX:TMUBMUSD02Y
BX : Tullett Prebon
4.29
-0.05 -1.15%
Volume: 0.00
Dec. 1, 2022 11:59a
loading...
/zigman2/quotes/210598269/delayed
US : U.S.: ICE Futures U.S.
104.87
-1.08 -1.02%
Volume: 0.00
Dec. 1, 2022 11:49a
loading...
/zigman2/quotes/209723049/delayed
US : U.S.: Nymex
$ 82.03
+1.48 +1.84%
Volume: 201,800
Dec. 1, 2022 11:49a
loading...
/zigman2/quotes/210597971/delayed
JP : Nikkei
28,226.08
+257.09 +0.92%
Volume: 0.00
Dec. 1, 2022 3:15p
loading...
/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
18,736.44
+139.21 +0.75%
Volume: 4.26M
Dec. 1, 2022 4:08p
loading...
/zigman2/quotes/210561794/realtime/sampled
US : Tullett Prebon
1,305.4100
+2.0500 +0.1573%
Volume: 0.0000
Dec. 1, 2022 11:59a
loading...
/zigman2/quotes/210599654/delayed
XX : STOXX
443.96
+3.92 +0.89%
Volume: 0.00
Dec. 1, 2022 5:44p
loading...
1 2
This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.