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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 +1.10% 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 +0.92% 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 -0.09% , Bank of New York /zigman2/quotes/200171276/composite BK -1.52% , Nasdaq /zigman2/quotes/205547889/composite NDAQ +1.44% and Northern Trust /zigman2/quotes/207066008/composite NTRS +0.97% , while Sonoco Products /zigman2/quotes/201691559/composite SON +1.37% is the sole materials stock. ResMed /zigman2/quotes/204675483/composite RMD -0.81% , Amgen /zigman2/quotes/209157011/composite AMGN -0.43% , Johnson & Johnson /zigman2/quotes/201724570/composite JNJ +0.47% and Cerner are among the healthcare names, Verisk Analytics /zigman2/quotes/209704997/composite VRSK +1.68% and Waste Management /zigman2/quotes/207732466/composite WM -2.67% for the industrials names and AmDocs /zigman2/quotes/202810519/composite DOX -2.73% , CDW /zigman2/quotes/208546399/composite CDW +1.07% , Oracle /zigman2/quotes/202180826/composite ORCL -0.82% , Western Union /zigman2/quotes/206269665/composite WU +1.80% , Paychex /zigman2/quotes/202030365/composite PAYX +2.12% and VeriSign /zigman2/quotes/205260150/composite VRSN +0.63% are within a huge batch of IT names.

Finally, the bank named American Tower /zigman2/quotes/200890312/composite AMT -0.09% for real estate and Xcel Energy /zigman2/quotes/200626850/composite XEL +0.11% 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 +0.57% 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 +0.47% stock is down on disappointing results and Hasbro /zigman2/quotes/201249319/composite HAS +4.53% also falling on earnings news. IBM /zigman2/quotes/203856914/composite IBM +0.67% will also report late.

Plug Power /zigman2/quotes/205453512/composite PLUG +0.74% shares are climbing on a liquid green hydrogen delivery deal with Walmart /zigman2/quotes/207374728/composite WMT -0.71% .

American Campus stock 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 +3.28% , Southwest , American /zigman2/quotes/209207041/composite AAL +1.89%  , Alaska Air /zigman2/quotes/200972303/composite ALK +2.93% , Delta /zigman2/quotes/200327741/composite DAL -0.54% and JetBlue /zigman2/quotes/207639051/composite JBLU +11.39%  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
4,164.70
+45.49 +1.10%
Volume: 0.00
Feb. 2, 2023 3:21p
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/zigman2/quotes/210598144/delayed
US : US Composite
2,291.24
+20.97 +0.92%
Volume: 4.00M
Feb. 2, 2023 3:06p
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/zigman2/quotes/208419097/composite
US : U.S.: NYSE
$ 175.31
-0.15 -0.09%
Volume: 1.58M
Feb. 2, 2023 3:21p
P/E Ratio
29.02
Dividend Yield
1.35%
Market Cap
$87.03 billion
Rev. per Employee
$249,639
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/zigman2/quotes/200171276/composite
US : U.S.: NYSE
$ 50.03
-0.77 -1.52%
Volume: 4.70M
Feb. 2, 2023 3:21p
P/E Ratio
17.26
Dividend Yield
2.96%
Market Cap
$41.06 billion
Rev. per Employee
$408,758
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/zigman2/quotes/205547889/composite
US : U.S.: Nasdaq
$ 60.36
+0.85 +1.44%
Volume: 1.49M
Feb. 2, 2023 3:21p
P/E Ratio
26.69
Dividend Yield
1.33%
Market Cap
$29.23 billion
Rev. per Employee
$1.07M
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/zigman2/quotes/207066008/composite
US : U.S.: Nasdaq
$ 97.69
+0.94 +0.97%
Volume: 721,015
Feb. 2, 2023 3:21p
P/E Ratio
15.93
Dividend Yield
3.07%
Market Cap
$20.16 billion
Rev. per Employee
$367,379
loading...
/zigman2/quotes/201691559/composite
US : U.S.: NYSE
$ 62.04
+0.84 +1.37%
Volume: 189,921
Feb. 2, 2023 3:20p
P/E Ratio
14.08
Dividend Yield
3.16%
Market Cap
$5.97 billion
Rev. per Employee
$342,015
loading...
/zigman2/quotes/204675483/composite
US : U.S.: NYSE
$ 227.17
-1.86 -0.81%
Volume: 477,213
Feb. 2, 2023 3:21p
P/E Ratio
41.23
Dividend Yield
0.78%
Market Cap
$33.65 billion
Rev. per Employee
$461,186
loading...
/zigman2/quotes/209157011/composite
US : U.S.: Nasdaq
$ 245.36
-1.06 -0.43%
Volume: 3.40M
Feb. 2, 2023 3:21p
P/E Ratio
20.24
Dividend Yield
3.48%
Market Cap
$131.48 billion
Rev. per Employee
$1.09M
loading...
/zigman2/quotes/201724570/composite
US : U.S.: NYSE
$ 165.70
+0.78 +0.47%
Volume: 7.03M
Feb. 2, 2023 3:21p
P/E Ratio
24.58
Dividend Yield
2.73%
Market Cap
$431.18 billion
Rev. per Employee
$670,028
loading...
/zigman2/quotes/209704997/composite
US : U.S.: Nasdaq
$ 187.25
+3.09 +1.68%
Volume: 705,165
Feb. 2, 2023 3:20p
P/E Ratio
29.08
Dividend Yield
0.66%
Market Cap
$28.80 billion
Rev. per Employee
$323,807
loading...
/zigman2/quotes/207732466/composite
US : U.S.: NYSE
$ 150.28
-4.13 -2.67%
Volume: 2.67M
Feb. 2, 2023 3:21p
P/E Ratio
27.83
Dividend Yield
1.73%
Market Cap
$63.38 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/202810519/composite
US : U.S.: Nasdaq
$ 94.41
-2.65 -2.73%
Volume: 1.19M
Feb. 2, 2023 3:21p
P/E Ratio
21.35
Dividend Yield
1.67%
Market Cap
$11.73 billion
Rev. per Employee
$151,091
loading...
/zigman2/quotes/208546399/composite
US : U.S.: Nasdaq
$ 201.31
+2.13 +1.07%
Volume: 832,057
Feb. 2, 2023 3:21p
P/E Ratio
26.46
Dividend Yield
1.17%
Market Cap
$26.97 billion
Rev. per Employee
$1.72M
loading...
/zigman2/quotes/202180826/composite
US : U.S.: NYSE
$ 89.31
-0.74 -0.82%
Volume: 5.49M
Feb. 2, 2023 3:21p
P/E Ratio
27.87
Dividend Yield
1.43%
Market Cap
$242.80 billion
Rev. per Employee
$322,189
loading...
/zigman2/quotes/206269665/composite
US : U.S.: NYSE
$ 14.43
+0.26 +1.80%
Volume: 4.47M
Feb. 2, 2023 3:21p
P/E Ratio
6.83
Dividend Yield
6.51%
Market Cap
$5.47 billion
Rev. per Employee
$444,095
loading...
/zigman2/quotes/202030365/composite
US : U.S.: Nasdaq
$ 120.21
+2.50 +2.12%
Volume: 1.54M
Feb. 2, 2023 3:21p
P/E Ratio
29.72
Dividend Yield
2.63%
Market Cap
$42.43 billion
Rev. per Employee
$301,050
loading...
/zigman2/quotes/205260150/composite
US : U.S.: Nasdaq
$ 222.13
+1.40 +0.63%
Volume: 204,145
Feb. 2, 2023 3:21p
P/E Ratio
29.51
Dividend Yield
N/A
Market Cap
$23.40 billion
Rev. per Employee
$1.54M
loading...
/zigman2/quotes/200890312/composite
US : U.S.: NYSE
$ 226.94
-0.20 -0.09%
Volume: 1.55M
Feb. 2, 2023 3:21p
P/E Ratio
35.97
Dividend Yield
2.59%
Market Cap
$105.76 billion
Rev. per Employee
$1.64M
loading...
/zigman2/quotes/200626850/composite
US : U.S.: Nasdaq
$ 69.69
+0.08 +0.11%
Volume: 1.75M
Feb. 2, 2023 3:21p
P/E Ratio
21.97
Dividend Yield
2.80%
Market Cap
$38.09 billion
Rev. per Employee
$1.35M
loading...
/zigman2/quotes/202353025/composite
US : U.S.: Nasdaq
$ 364.06
+2.07 +0.57%
Volume: 5.95M
Feb. 2, 2023 3:21p
P/E Ratio
36.39
Dividend Yield
N/A
Market Cap
$161.21 billion
Rev. per Employee
$2.47M
loading...
/zigman2/quotes/201724570/composite
US : U.S.: NYSE
$ 165.70
+0.78 +0.47%
Volume: 7.03M
Feb. 2, 2023 3:21p
P/E Ratio
24.58
Dividend Yield
2.73%
Market Cap
$431.18 billion
Rev. per Employee
$670,028
loading...
/zigman2/quotes/201249319/composite
US : U.S.: Nasdaq
$ 62.97
+2.73 +4.53%
Volume: 1.74M
Feb. 2, 2023 3:21p
P/E Ratio
21.14
Dividend Yield
4.44%
Market Cap
$8.32 billion
Rev. per Employee
$931,988
loading...
/zigman2/quotes/203856914/composite
US : U.S.: NYSE
$ 136.00
+0.91 +0.67%
Volume: 3.72M
Feb. 2, 2023 3:21p
P/E Ratio
77.29
Dividend Yield
4.85%
Market Cap
$122.14 billion
Rev. per Employee
$196,782
loading...
/zigman2/quotes/205453512/composite
US : U.S.: Nasdaq
$ 17.81
+0.13 +0.74%
Volume: 21.14M
Feb. 2, 2023 3:21p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$10.31 billion
Rev. per Employee
$262,394
loading...
/zigman2/quotes/207374728/composite
US : U.S.: NYSE
$ 143.64
-1.03 -0.71%
Volume: 3.77M
Feb. 2, 2023 3:21p
P/E Ratio
44.32
Dividend Yield
1.56%
Market Cap
$390.15 billion
Rev. per Employee
$260,918
loading...
/zigman2/quotes/205037281/composite
US : U.S.: Nasdaq
$ 51.87
+1.65 +3.28%
Volume: 8.11M
Feb. 2, 2023 3:21p
P/E Ratio
23.87
Dividend Yield
N/A
Market Cap
$16.42 billion
Rev. per Employee
$534,542
loading...
/zigman2/quotes/209207041/composite
US : U.S.: Nasdaq
$ 17.01
+0.32 +1.89%
Volume: 23.31M
Feb. 2, 2023 3:21p
P/E Ratio
580.65
Dividend Yield
0.00%
Market Cap
$10.85 billion
Rev. per Employee
$396,848
loading...
/zigman2/quotes/200972303/composite
US : U.S.: NYSE
$ 53.36
+1.52 +2.93%
Volume: 1.17M
Feb. 2, 2023 3:20p
P/E Ratio
122.66
Dividend Yield
0.00%
Market Cap
$6.58 billion
Rev. per Employee
$422,459
loading...
/zigman2/quotes/200327741/composite
US : U.S.: NYSE
$ 39.68
-0.22 -0.54%
Volume: 7.95M
Feb. 2, 2023 3:21p
P/E Ratio
19.38
Dividend Yield
0.00%
Market Cap
$25.58 billion
Rev. per Employee
$609,422
loading...
/zigman2/quotes/207639051/composite
US : U.S.: Nasdaq
$ 9.19
+0.94 +11.39%
Volume: 21.28M
Feb. 2, 2023 3:21p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$2.67 billion
Rev. per Employee
N/A
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