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

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 -0.09% 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 -0.72% , Autodesk /zigman2/quotes/209828392/composite ADSK +3.12% , McDonald’s /zigman2/quotes/203508018/composite MCD -0.61% , Microsoft /zigman2/quotes/207732364/composite MSFT -1.01% , NextEra /zigman2/quotes/200558509/composite NEE +0.34% , PPL /zigman2/quotes/207772352/composite PPL -1.36% , Reynolds /zigman2/quotes/216150988/composite REYN +0.50% , Hershey /zigman2/quotes/202765576/composite HSY -1.73% , Thomson Reuters /zigman2/quotes/203550191/composite TRI -0.85% , Union Pacific /zigman2/quotes/209717171/composite UNP +0.11% , Visa /zigman2/quotes/203660239/composite V +0.51% .

EMEA: Air Liquide /zigman2/quotes/206822858/delayed FR:AI +0.38% , ASML /zigman2/quotes/210293876/composite ASML +1.72% /zigman2/quotes/206208657/delayed NL:ASML -0.59% , Assa Abloy /zigman2/quotes/209593756/delayed SE:ASSA.B +0.07% ,  Coloplast /zigman2/quotes/206586833/delayed DK:COLO.B +1.39% , Diageo /zigman2/quotes/205611832/delayed UK:DGE +0.84% /zigman2/quotes/208129584/composite DEO -1.26% , Edenred /zigman2/quotes/204329243/delayed FR:EDEN +0.40% , Experian /zigman2/quotes/210252954/delayed UK:EXPN -0.65% ,  Haleon /zigman2/quotes/236012088/delayed UK:HLN -0.17% , Legal & General /zigman2/quotes/201125471/delayed UK:LGEN +0.26% , LSEG /zigman2/quotes/206625606/delayed UK:LSEG -0.07% ,  National Grid /zigman2/quotes/208805676/delayed UK:NG -0.34% , Reckitt Benckiser /zigman2/quotes/206856088/delayed UK:RKT +0.19% , Schneider /zigman2/quotes/200216351/delayed FR:SU +0.37% , Sika /zigman2/quotes/200712565/delayed CH:SIKA -0.17% , Smurfit Kappa /zigman2/quotes/208768615/delayed IE:SK3 +3.11% ,  Wolters Kluwer /zigman2/quotes/207940915/delayed NL:WKL -0.04% .

Asia Pacific: AIA /zigman2/quotes/203565558/delayed HK:1299 -2.60% , CP All PCL TH:CPALL -5.48% , CTOS Digital /zigman2/quotes/227833438/delayed MY:5301 +0.69% , Hindustan Unilever /zigman2/quotes/206253666/delayed IN:500696 +0.90% , Intl Container /zigman2/quotes/207125957/delayed PH:ICT -3.14% , PT Bank Mandiri (Persero) Tbk , Samsung Biologics /zigman2/quotes/206016987/delayed KR:207940 -0.55% , Samsung Electronics /zigman2/quotes/209800866/delayed KR:005930 +0.14%

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 +0.23% /zigman2/quotes/210219788/delayed NQ00 +0.26% /zigman2/quotes/210407078/delayed YM00 +0.48% are back and forth, but now in the green , with 2-year Treasury yields /zigman2/quotes/211347045/realtime BX:TMUBMUSD02Y -0.45% at the highest since 2008 . The dollar index /zigman2/quotes/210598269/delayed DXY +0.48% 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 +1.75% are higher.

Asian equities /zigman2/quotes/210597971/delayed JP:NIK +0.50% /zigman2/quotes/210598030/delayed HK:HSI +0.29% stumbled and the Korean won /zigman2/quotes/210561794/realtime/sampled USDKRW +0.6366% hit its lowest in 13 years. Europe equities /zigman2/quotes/210599654/delayed XX:SXXP +0.37% aren’t faring much better.

/zigman2/quotes/210599714/realtime

Add to watchlist SPX

S&P 500 Index

US : S&P US

4,550.58

-4.31 -0.09%

Volume: 0.00

Nov. 29, 2023 4:58p

/zigman2/quotes/201523430/composite

Add to watchlist APD

Air Products & Chemicals Inc.

US : U.S.: NYSE

$ 266.48

-1.92 -0.72%

Volume: 1.10M

Nov. 29, 2023 4:00p

P/E Ratio

25.89

Dividend Yield

2.63%

Market Cap

$59.64 billion

Rev. per Employee

$547,800

/zigman2/quotes/209828392/composite

Add to watchlist ADSK

Autodesk Inc.

US : U.S.: Nasdaq

$ 213.85

+6.48 +3.12%

Volume: 2.80M

Nov. 29, 2023 4:00p

P/E Ratio

50.34

Dividend Yield

N/A

Market Cap

$44.33 billion

Rev. per Employee

$385,766

/zigman2/quotes/203508018/composite

Add to watchlist MCD

McDonald's Corp.

US : U.S.: NYSE

$ 278.71

-1.71 -0.61%

Volume: 2.43M

Nov. 29, 2023 4:00p

P/E Ratio

24.56

Dividend Yield

2.40%

Market Cap

$204.61 billion

Rev. per Employee

$166,760

/zigman2/quotes/207732364/composite

Add to watchlist MSFT

Microsoft Corp.

US : U.S.: Nasdaq

$ 378.85

-3.85 -1.01%

Volume: 28.96M

Nov. 29, 2023 4:00p

P/E Ratio

36.69

Dividend Yield

0.79%

Market Cap

$2844.33 billion

Rev. per Employee

$987,828

/zigman2/quotes/200558509/composite

Add to watchlist NEE

NextEra Energy Inc.

US : U.S.: NYSE

$ 58.36

+0.20 +0.34%

Volume: 17.02M

Nov. 29, 2023 4:00p

P/E Ratio

15.43

Dividend Yield

3.20%

Market Cap

$119.33 billion

Rev. per Employee

$1.48M

/zigman2/quotes/207772352/composite

Add to watchlist PPL

PPL Corp.

US : U.S.: NYSE

$ 26.03

-0.36 -1.36%

Volume: 5.78M

Nov. 29, 2023 4:00p

P/E Ratio

24.81

Dividend Yield

3.69%

Market Cap

$19.45 billion

Rev. per Employee

$1.31M

/zigman2/quotes/216150988/composite

Add to watchlist REYN

Reynolds Consumer Products Inc.

US : U.S.: Nasdaq

$ 26.34

+0.13 +0.50%

Volume: 421,439

Nov. 29, 2023 4:00p

P/E Ratio

20.63

Dividend Yield

3.49%

Market Cap

$5.50 billion

Rev. per Employee

$639,667

/zigman2/quotes/202765576/composite

Add to watchlist HSY

Hershey Co.

US : U.S.: NYSE

$ 185.72

-3.27 -1.73%

Volume: 1.17M

Nov. 29, 2023 4:00p

P/E Ratio

20.02

Dividend Yield

2.57%

Market Cap

$38.65 billion

Rev. per Employee

$561,803

/zigman2/quotes/203550191/composite

Add to watchlist TRI

Thomson Reuters Corp.

US : U.S.: NYSE

$ 139.04

-1.19 -0.85%

Volume: 455,930

Nov. 29, 2023 4:00p

P/E Ratio

28.51

Dividend Yield

1.41%

Market Cap

$63.79 billion

Rev. per Employee

$267,619

/zigman2/quotes/209717171/composite

Add to watchlist UNP

Union Pacific Corp.

US : U.S.: NYSE

$ 221.47

+0.24 +0.11%

Volume: 1.23M

Nov. 29, 2023 4:00p

P/E Ratio

21.27

Dividend Yield

2.35%

Market Cap

$134.86 billion

Rev. per Employee

$785,884

/zigman2/quotes/203660239/composite

Add to watchlist V

Visa Inc. Cl A

US : U.S.: NYSE

$ 254.23

+1.29 +0.51%

Volume: 4.96M

Nov. 29, 2023 4:00p

P/E Ratio

31.19

Dividend Yield

0.82%

Market Cap

$515.08 billion

Rev. per Employee

$1.13M

/zigman2/quotes/206822858/delayed

Add to watchlist FR:AI

Air Liquide S.A.

FR : France: Euronext Paris

€ 174.42

+0.66 +0.38%

Volume: 81,629

Nov. 30, 2023 11:46a

P/E Ratio

28.77

Dividend Yield

1.69%

Market Cap

€91.10 billion

Rev. per Employee

€442,678

/zigman2/quotes/210293876/composite

Add to watchlist ASML

ASML Holding N.V.

US : U.S.: Nasdaq

$ 687.61

+11.62 +1.72%

Volume: 795,479

Nov. 29, 2023 4:00p

P/E Ratio

33.38

Dividend Yield

0.80%

Market Cap

$272.30 billion

Rev. per Employee

$730,917

/zigman2/quotes/206208657/delayed

Add to watchlist NL:ASML

ASML Holding N.V.

NL : Netherlands: Euronext Amsterdam

€ 625.50

-3.70 -0.59%

Volume: 142,792

Nov. 30, 2023 11:46a

P/E Ratio

32.43

Dividend Yield

0.95%

Market Cap

€247.98 billion

Rev. per Employee

€684,432

/zigman2/quotes/209593756/delayed

Add to watchlist SE:ASSA.B

Assa Abloy AB Series B

SE : Sweden: Stockholm

kr 269.80

+0.20 +0.07%

Volume: 291,444

Nov. 30, 2023 11:46a

P/E Ratio

22.36

Dividend Yield

1.78%

Market Cap

kr295.36 billion

Rev. per Employee

kr2.63M

/zigman2/quotes/206586833/delayed

Add to watchlist DK:COLO.B

Coloplast A/S Series B

DK : Denmark: OMX

kr. 814.40

+11.20 +1.39%

Volume: 42,890

Nov. 30, 2023 11:46a

P/E Ratio

36.69

Dividend Yield

2.46%

Market Cap

kr.180.68 billion

Rev. per Employee

kr.1.56M

/zigman2/quotes/205611832/delayed

Add to watchlist UK:DGE

Diageo PLC

UK : U.K.: London

2,763.00 p

+23.00 +0.84%

Volume: 408,096

Nov. 30, 2023 10:46a

P/E Ratio

16.80

Dividend Yield

2.90%

Market Cap

£62.11 billion

Rev. per Employee

£565,364

/zigman2/quotes/208129584/composite

Add to watchlist DEO

Diageo PLC ADR

US : U.S.: NYSE

$ 138.93

-1.77 -1.26%

Volume: 596,745

Nov. 29, 2023 4:00p

P/E Ratio

17.65

Dividend Yield

2.82%

Market Cap

$78.77 billion

Rev. per Employee

$680,012

/zigman2/quotes/204329243/delayed

Add to watchlist FR:EDEN

Edenred SE

FR : France: Euronext Paris

€ 50.22

+0.20 +0.40%

Volume: 44,980

Nov. 30, 2023 11:44a

P/E Ratio

31.78

Dividend Yield

1.99%

Market Cap

€12.40 billion

Rev. per Employee

€218,872

/zigman2/quotes/210252954/delayed

Add to watchlist UK:EXPN

Experian PLC

UK : U.K.: London

2,899.00 p

-19.00 -0.65%

Volume: 112,984

Nov. 30, 2023 10:45a

P/E Ratio

31.74

Dividend Yield

1.52%

Market Cap

£26.37 billion

Rev. per Employee

£250,021

/zigman2/quotes/236012088/delayed

Add to watchlist UK:HLN

Haleon PLC

UK : U.K.: London

£ 330.55

-0.55 -0.17%

Volume: 936,284

Nov. 30, 2023 10:45a

P/E Ratio

27.64

Dividend Yield

0.01%

Market Cap

£30.97 billion

Rev. per Employee

N/A

/zigman2/quotes/201125471/delayed

Add to watchlist UK:LGEN

Legal & General Group PLC

UK : U.K.: London

229.10 p

+0.60 +0.26%

Volume: 1.53M

Nov. 30, 2023 10:44a

P/E Ratio

10.06

Dividend Yield

8.57%

Market Cap

£13.33 billion

Rev. per Employee

N/A

/zigman2/quotes/206625606/delayed

Add to watchlist UK:LSEG

London Stock Exchange Group PLC

UK : U.K.: London

8,904.00 p

-6.00 -0.07%

Volume: 47,137

Nov. 30, 2023 10:46a

P/E Ratio

69.35

Dividend Yield

1.25%

Market Cap

£46.57 billion

Rev. per Employee

£336,969

/zigman2/quotes/208805676/delayed

Add to watchlist UK:NG

National Grid PLC

UK : U.K.: London

1,022.00 p

-3.50 -0.34%

Volume: 717,813

Nov. 30, 2023 10:46a

P/E Ratio

4.91

Dividend Yield

5.58%

Market Cap

£37.77 billion

Rev. per Employee

£703,022

/zigman2/quotes/206856088/delayed

Add to watchlist UK:RKT

Reckitt Benckiser Group PLC

UK : U.K.: London

5,400.00 p

+10.00 +0.19%

Volume: 110,911

Nov. 30, 2023 10:46a

P/E Ratio

17.38

Dividend Yield

3.46%

Market Cap

£38.75 billion

Rev. per Employee

£289,653

/zigman2/quotes/200216351/delayed

Add to watchlist FR:SU

Schneider Electric SE

FR : France: Euronext Paris

€ 167.82

+0.62 +0.37%

Volume: 145,681

Nov. 30, 2023 11:45a

P/E Ratio

23.86

Dividend Yield

1.88%

Market Cap

€93.12 billion

Rev. per Employee

€238,512

/zigman2/quotes/200712565/delayed

Add to watchlist CH:SIKA

Sika AG

CH : Switzerland: SWX

CHF 236.40

-0.40 -0.17%

Volume: 29,319

Nov. 30, 2023 11:44a

P/E Ratio

38.63

Dividend Yield

1.35%

Market Cap

CHF37.71 billion

Rev. per Employee

CHF382,092

/zigman2/quotes/208768615/delayed

Add to watchlist IE:SK3

Smurfit Kappa Group PLC

IE : Ireland: Dublin

€ 34.18

+1.03 +3.11%

Volume: 420,028

Nov. 30, 2023 10:45a

P/E Ratio

10.55

Dividend Yield

4.13%

Market Cap

€8.34 billion

Rev. per Employee

€255,562

/zigman2/quotes/207940915/delayed

Add to watchlist NL:WKL

Wolters Kluwer N.V.

NL : Netherlands: Euronext Amsterdam

€ 125.90

-0.05 -0.04%

Volume: 75,219

Nov. 30, 2023 11:46a

P/E Ratio

30.09

Dividend Yield

1.51%

Market Cap

€30.82 billion

Rev. per Employee

€278,121

/zigman2/quotes/203565558/delayed

Add to watchlist HK:1299

AIA Group Ltd.

HK : Hong Kong

$ 67.40

-1.80 -2.60%

Volume: 57.03M

Nov. 30, 2023 4:08p

P/E Ratio

32.29

Dividend Yield

2.31%

Market Cap

$800.29 billion

Rev. per Employee

N/A

Add to watchlist TH:CPALL

CP ALL PCL

TH : Thailand: Bangkok

฿ 51.75

-3.00 -5.48%

Volume: 91.95M

Nov. 29, 2023 12:00a

P/E Ratio

29.68

Dividend Yield

1.45%

Market Cap

฿491.82 billion

Rev. per Employee

฿11.98M

/zigman2/quotes/227833438/delayed

Add to watchlist MY:5301

CTOS Digital Bhd

MY : Malaysia

RM 1.45

+0.01 +0.69%

Volume: 4.36M

Nov. 30, 2023 4:59p

P/E Ratio

44.21

Dividend Yield

1.37%

Market Cap

RM3.30 billion

Rev. per Employee

RM417,730

/zigman2/quotes/206253666/delayed

Add to watchlist IN:500696

Hindustan Unilever Ltd.

IN : India: Bombay

₹ 2,546.70

+22.65 +0.90%

Volume: 56,983

Nov. 30, 2023 3:30p

P/E Ratio

58.18

Dividend Yield

1.57%

Market Cap

₹5900.41 billion

Rev. per Employee

₹22.01M

/zigman2/quotes/207125957/delayed

Add to watchlist PH:ICT

International Container Terminal Services Inc.

PH : Philippines: Manila

₱ 215.80

-7.00 -3.14%

Volume: 3.03M

Nov. 30, 2023 2:59p

P/E Ratio

12.91

Dividend Yield

4.63%

Market Cap

₱447.04 billion

Rev. per Employee

₱12.73M

/zigman2/quotes/206016987/delayed

Add to watchlist KR:207940

Samsung Biologics Co. Ltd.

KR : S. Korea: KRX

₩ 725,000

-4,000 -0.55%

Volume: 67,312

Nov. 30, 2023 6:14p

P/E Ratio

55.08

Dividend Yield

N/A

Market Cap

₩51743.50 billion

Rev. per Employee

N/A

/zigman2/quotes/209800866/delayed

Add to watchlist KR:005930

Samsung Electronics Co. Ltd.

KR : S. Korea: KRX

₩ 72,800.00

+100.00 +0.14%

Volume: 15.78M

Nov. 30, 2023 6:13p

P/E Ratio

15.48

Dividend Yield

1.98%

Market Cap

₩481648.35 billion

Rev. per Employee

N/A

/zigman2/quotes/209948968/delayed

Add to watchlist ES00

E-Mini S&P 500 Future Continuous Contract

US : U.S.: CME

$ 4,569.75

+10.50 +0.23%

Volume: 106,166

Nov. 30, 2023 4:51a

/zigman2/quotes/210219788/delayed

Add to watchlist NQ00

E-Mini Nasdaq 100 Index Continuous Contract

US : U.S.: CME

$ 16,065.00

+41.25 +0.26%

Volume: 57,869

Nov. 30, 2023 4:51a

/zigman2/quotes/210407078/delayed

Add to watchlist YM00

E-Mini Dow Continuous Contract

US : U.S.: CBOT

$ 35,659.00

+171.00 +0.48%

Volume: 22,068

Nov. 30, 2023 4:51a

/zigman2/quotes/211347045/realtime

Add to watchlist BX:TMUBMUSD02Y

U.S. 2 Year Treasury Note

BX : Tullett Prebon

4.66

-0.02 -0.45%

Volume: 0.00

Nov. 30, 2023 6:00a

/zigman2/quotes/210598269/delayed

Add to watchlist DXY

U.S. Dollar Index (DXY)

US : U.S.: ICE Futures U.S.

103.26

+0.49 +0.48%

Volume: 0.00

Nov. 30, 2023 5:51a

/zigman2/quotes/209723049/delayed

Add to watchlist CL00

Crude Oil Continuous Contract

US : U.S.: Nymex

$ 79.22

+1.36 +1.75%

Volume: 73,416

Nov. 30, 2023 5:51a

/zigman2/quotes/210597971/delayed

Add to watchlist JP:NIK

NIKKEI 225 Index

JP : Nikkei

33,486.89

+165.67 +0.50%

Volume: 0.00

Nov. 30, 2023 3:15p

/zigman2/quotes/210598030/delayed

Add to watchlist HK:HSI

Hang Seng Index

HK : Hong Kong Exchange

17,042.88

+49.44 +0.29%

Volume: 3.01M

Nov. 30, 2023 4:08p

/zigman2/quotes/210561794/realtime/sampled

Add to watchlist USDKRW

South Korean Won

US : Tullett Prebon

1,299.5000

+8.2200 +0.6366%

Volume: 0.0000

Nov. 30, 2023 6:01a

/zigman2/quotes/210599654/delayed

Add to watchlist XX:SXXP

STOXX Europe 600 Index

XX : STOXX

460.82

+1.72 +0.37%

Volume: 0.00

Nov. 30, 2023 11:46a