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April 19, 2022, 10:00 a.m. EDT

Here are 30 stocks that Goldman Sachs likes when the economy stutters and markets gyrate

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By Barbara Kollmeyer

Wall Street is finding some traction for Tuesday, as investors wade through big earnings and ample, gloomy distractions.

Fighting has ramped up again in Ukraine as the battle begins for the country’s eastern front. Apart from the tragic humanitarian crisis, the conflict is already causing the World Bank and others to cut their global growth forecasts.

Where to invest against such a volatile backdrop? Our call of the day from Goldman Sachs strategists offer up a group of equities they say can hold their in these uncertain times.

“Stable stocks –- those with low share price and earnings growth volatility -– typically outperform in environments of slowing economic growth and tightening financial conditions,” say a team led by Ben Snider and David Kostin in a note from late Monday.

After lagging dramatically against a strong global economic backdrop for the past two years, their stable stocks basket has outperformed the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.06% by 5 percentage points over the past six months, with more “room to run,” they say.

Those stocks remain cheap, trading at a price/earnings premium of around 8% versus a 35-year average of 15%. During a similar batch of slowing growth and Fed tightening in 2018, the premium hovered at 20% for that group, they note.

“Despite recent outperformance, stable stocks do not appear to be pricing the slowdown suggested by recent industry rotations or our economists’ GDP forecasts,” said Goldman.

As for the stock names, their stable basket consists of 50 Russell 1000 /zigman2/quotes/210598144/delayed RUI +1.14% stocks with the most stable EBITDA growth over the past 10 years. Excluded are those whose biggest year-over-year earning fall in the past five years ranked in the bottom 10% of their sector. Stocks in the bottom 10% of their sector based on consensus 2023 EPS expectations are also excluded.

Below are roughly 30 of the 50 stocks Goldman listed:

Financials names include Marsh & McLennan /zigman2/quotes/208419097/composite MMC +0.77% , Bank of New York /zigman2/quotes/200171276/composite BK +1.70% , Nasdaq /zigman2/quotes/205547889/composite NDAQ +2.00% and Northern Trust /zigman2/quotes/207066008/composite NTRS +1.29% , while Sonoco Products /zigman2/quotes/201691559/composite SON +3.14% is the sole materials stock. ResMed /zigman2/quotes/204675483/composite RMD +2.91% , Amgen /zigman2/quotes/209157011/composite AMGN +0.92% , Johnson & Johnson /zigman2/quotes/201724570/composite JNJ +1.13% and Cerner are among the healthcare names, Verisk Analytics /zigman2/quotes/209704997/composite VRSK +1.28% and Waste Management /zigman2/quotes/207732466/composite WM +1.75% for the industrials names and AmDocs /zigman2/quotes/202810519/composite DOX +1.37% , CDW /zigman2/quotes/208546399/composite CDW -0.36% , Oracle /zigman2/quotes/202180826/composite ORCL +1.43% , Western Union /zigman2/quotes/206269665/composite WU +2.06% , Paychex /zigman2/quotes/202030365/composite PAYX +2.19% and VeriSign /zigman2/quotes/205260150/composite VRSN +2.08% are within a huge batch of IT names.

Finally, the bank named American Tower /zigman2/quotes/200890312/composite AMT +1.10% for real estate and Xcel Energy /zigman2/quotes/200626850/composite XEL +2.64% for utilities.

Read: These 20 highly rated stocks are expected to rise at least 70% over the next year

The buzz

Netflix /zigman2/quotes/202353025/composite NFLX +2.91% is in the earnings spotlight, with investors looking for a rebound from the streaming giant’s results, due after the market close. Ahead of that, Johnson & Johnson /zigman2/quotes/201724570/composite JNJ +1.13% stock is down on disappointing results and Hasbro /zigman2/quotes/201249319/composite HAS -0.65% also falling on earnings news. IBM /zigman2/quotes/203856914/composite IBM -0.05% will also report late.

Plug Power /zigman2/quotes/205453512/composite PLUG +3.68% shares are climbing on a liquid green hydrogen delivery deal with Walmart /zigman2/quotes/207374728/composite WMT +0.86% .

American Campus stock /zigman2/quotes/207789729/composite ACC +0.42% is jumping on a WSJ report that Blackstone is close to a $12.8 billion deal for the biggest developer and owner of student housing in the U.S.

United /zigman2/quotes/205037281/composite UAL +2.88% , Southwest , American /zigman2/quotes/209207041/composite AAL +3.55%  , Alaska Air /zigman2/quotes/200972303/composite ALK +2.80% , Delta /zigman2/quotes/200327741/composite DAL +1.90% and JetBlue /zigman2/quotes/207639051/composite JBLU +1.91%  are creeping higher after a judge in Florida struck down the national mask mandates for the transportation sector and those companies dropped mask mandates. There was cheering and jeering on some flights:

/zigman2/quotes/210599714/realtime
US : S&P US
3,825.33
+39.95 +1.06%
Volume: 2.20B
July 1, 2022 5:45p
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/zigman2/quotes/210598144/delayed
US : US Composite
2,099.54
+23.58 +1.14%
Volume: 3.37M
July 1, 2022 4:30p
loading...
/zigman2/quotes/208419097/composite
US : U.S.: NYSE
$ 156.45
+1.20 +0.77%
Volume: 1.26M
July 1, 2022 4:04p
P/E Ratio
24.75
Dividend Yield
1.37%
Market Cap
$77.92 billion
Rev. per Employee
$244,892
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/zigman2/quotes/200171276/composite
US : U.S.: NYSE
$ 42.42
+0.71 +1.70%
Volume: 2.89M
July 1, 2022 4:04p
P/E Ratio
10.51
Dividend Yield
3.21%
Market Cap
$33.69 billion
Rev. per Employee
$327,169
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/zigman2/quotes/205547889/composite
US : U.S.: Nasdaq
$ 155.59
+3.05 +2.00%
Volume: 882,281
July 1, 2022 4:00p
P/E Ratio
22.34
Dividend Yield
1.54%
Market Cap
$25.12 billion
Rev. per Employee
$992,604
loading...
/zigman2/quotes/207066008/composite
US : U.S.: Nasdaq
$ 97.72
+1.24 +1.29%
Volume: 767,727
July 1, 2022 4:00p
P/E Ratio
13.56
Dividend Yield
2.87%
Market Cap
$20.10 billion
Rev. per Employee
$317,185
loading...
/zigman2/quotes/201691559/composite
US : U.S.: NYSE
$ 58.83
+1.79 +3.14%
Volume: 666,984
July 1, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
3.33%
Market Cap
$5.56 billion
Rev. per Employee
$292,911
loading...
/zigman2/quotes/204675483/composite
US : U.S.: NYSE
$ 215.72
+6.09 +2.91%
Volume: 589,936
July 1, 2022 4:00p
P/E Ratio
40.64
Dividend Yield
0.78%
Market Cap
$30.67 billion
Rev. per Employee
$444,102
loading...
/zigman2/quotes/209157011/composite
US : U.S.: Nasdaq
$ 245.55
+2.25 +0.92%
Volume: 2.75M
July 1, 2022 4:00p
P/E Ratio
24.19
Dividend Yield
3.16%
Market Cap
$129.97 billion
Rev. per Employee
$1.09M
loading...
/zigman2/quotes/201724570/composite
US : U.S.: NYSE
$ 179.52
+2.01 +1.13%
Volume: 5.50M
July 1, 2022 4:00p
P/E Ratio
24.18
Dividend Yield
2.52%
Market Cap
$467.10 billion
Rev. per Employee
$669,704
loading...
/zigman2/quotes/209704997/composite
US : U.S.: Nasdaq
$ 175.30
+2.21 +1.28%
Volume: 630,051
July 1, 2022 4:00p
P/E Ratio
28.36
Dividend Yield
0.71%
Market Cap
$27.33 billion
Rev. per Employee
$325,398
loading...
/zigman2/quotes/207732466/composite
US : U.S.: NYSE
$ 155.65
+2.67 +1.75%
Volume: 1.52M
July 1, 2022 4:00p
P/E Ratio
34.33
Dividend Yield
1.67%
Market Cap
$63.52 billion
Rev. per Employee
$381,031
loading...
/zigman2/quotes/202810519/composite
US : U.S.: Nasdaq
$ 84.45
+1.14 +1.37%
Volume: 620,151
July 1, 2022 4:00p
P/E Ratio
18.97
Dividend Yield
1.87%
Market Cap
$10.23 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/208546399/composite
US : U.S.: Nasdaq
$ 157.00
-0.56 -0.36%
Volume: 798,080
July 1, 2022 4:00p
P/E Ratio
21.68
Dividend Yield
1.27%
Market Cap
$21.29 billion
Rev. per Employee
$1.58M
loading...
/zigman2/quotes/202180826/composite
US : U.S.: NYSE
$ 70.87
+1.00 +1.43%
Volume: 7.81M
July 1, 2022 4:03p
P/E Ratio
29.52
Dividend Yield
1.81%
Market Cap
$186.20 billion
Rev. per Employee
$296,783
loading...
/zigman2/quotes/206269665/composite
US : U.S.: NYSE
$ 16.81
+0.34 +2.06%
Volume: 3.32M
July 1, 2022 4:04p
P/E Ratio
7.39
Dividend Yield
5.59%
Market Cap
$6.36 billion
Rev. per Employee
$481,771
loading...
/zigman2/quotes/202030365/composite
US : U.S.: Nasdaq
$ 116.36
+2.49 +2.19%
Volume: 1.69M
July 1, 2022 4:00p
P/E Ratio
30.31
Dividend Yield
2.72%
Market Cap
$41.11 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/205260150/composite
US : U.S.: Nasdaq
$ 170.81
+3.48 +2.08%
Volume: 535,355
July 1, 2022 4:00p
P/E Ratio
24.01
Dividend Yield
N/A
Market Cap
$18.33 billion
Rev. per Employee
$1.49M
loading...
/zigman2/quotes/200890312/composite
US : U.S.: NYSE
$ 258.40
+2.81 +1.10%
Volume: 1.36M
July 1, 2022 4:00p
P/E Ratio
44.70
Dividend Yield
2.14%
Market Cap
$116.64 billion
Rev. per Employee
$1.55M
loading...
/zigman2/quotes/200626850/composite
US : U.S.: Nasdaq
$ 72.63
+1.87 +2.64%
Volume: 3.64M
July 1, 2022 4:00p
P/E Ratio
24.33
Dividend Yield
2.68%
Market Cap
$38.54 billion
Rev. per Employee
$1.20M
loading...
/zigman2/quotes/202353025/composite
US : U.S.: Nasdaq
$ 179.95
+5.08 +2.91%
Volume: 5.20M
July 1, 2022 4:00p
P/E Ratio
16.33
Dividend Yield
N/A
Market Cap
$77.69 billion
Rev. per Employee
$2.69M
loading...
/zigman2/quotes/201724570/composite
US : U.S.: NYSE
$ 179.52
+2.01 +1.13%
Volume: 5.50M
July 1, 2022 4:00p
P/E Ratio
24.18
Dividend Yield
2.52%
Market Cap
$467.10 billion
Rev. per Employee
$669,704
loading...
/zigman2/quotes/201249319/composite
US : U.S.: Nasdaq
$ 81.35
-0.53 -0.65%
Volume: 1.20M
July 1, 2022 4:00p
P/E Ratio
30.15
Dividend Yield
3.44%
Market Cap
$11.42 billion
Rev. per Employee
$974,006
loading...
/zigman2/quotes/203856914/composite
US : U.S.: NYSE
$ 141.12
-0.07 -0.05%
Volume: 4.01M
July 1, 2022 4:00p
P/E Ratio
23.17
Dividend Yield
4.68%
Market Cap
$126.99 billion
Rev. per Employee
$218,641
loading...
/zigman2/quotes/205453512/composite
US : U.S.: Nasdaq
$ 17.18
+0.61 +3.68%
Volume: 12.20M
July 1, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$9.58 billion
Rev. per Employee
$233,233
loading...
/zigman2/quotes/207374728/composite
US : U.S.: NYSE
$ 122.63
+1.05 +0.86%
Volume: 5.82M
July 1, 2022 4:00p
P/E Ratio
26.35
Dividend Yield
1.83%
Market Cap
$333.27 billion
Rev. per Employee
$250,440
loading...
/zigman2/quotes/207789729/composite
US : U.S.: NYSE
$ 64.74
+0.27 +0.42%
Volume: 1.35M
July 1, 2022 4:00p
P/E Ratio
160.88
Dividend Yield
2.90%
Market Cap
$8.99 billion
Rev. per Employee
$327,157
loading...
/zigman2/quotes/205037281/composite
US : U.S.: Nasdaq
$ 36.44
+1.02 +2.88%
Volume: 10.92M
July 1, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$11.57 billion
Rev. per Employee
$344,578
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/zigman2/quotes/209207041/composite
US : U.S.: Nasdaq
$ 13.13
+0.45 +3.55%
Volume: 34.11M
July 1, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$8.24 billion
Rev. per Employee
$281,791
loading...
/zigman2/quotes/200972303/composite
US : U.S.: NYSE
$ 41.17
+1.12 +2.80%
Volume: 1.42M
July 1, 2022 4:00p
P/E Ratio
11.24
Dividend Yield
0.00%
Market Cap
$5.05 billion
Rev. per Employee
$309,202
loading...
/zigman2/quotes/200327741/composite
US : U.S.: NYSE
$ 29.52
+0.55 +1.90%
Volume: 11.37M
July 1, 2022 4:00p
P/E Ratio
37.36
Dividend Yield
0.00%
Market Cap
$18.57 billion
Rev. per Employee
$422,868
loading...
/zigman2/quotes/207639051/composite
US : U.S.: Nasdaq
$ 8.53
+0.16 +1.91%
Volume: 8.21M
July 1, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$2.69 billion
Rev. per Employee
N/A
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