The market turmoil has many buyers on edge, however Wall Street analysts mentioned this week there are a raft of firms that supply a excessive stage of portfolio safety. These shares have distinctive traits that analysts imagine can climate virtually any quantity of volatility. CNBC Pro appeared via the highest Wall Street analysis to search out analysts’ high picks for navigating the market uncertainty. They embrace Fox, BJ’s Wholesale Club , T-Mobile , Highwoods Properties and Synopsys. Fox “Still a good place to hide,” MoffettNathanson analyst Robert Fishman mentioned in a current be aware to shoppers. Shares of the corporate are down 3.9% this yr, and whereas Fishman acknowledged conventional media has had its struggles, he urged buyers to stay with the inventory. “Fox Corporation has a strong and unique hand with its sports and news portfolio mix that should allow the company to continue to outperform its peers by growing revenues and taking a greater share of a smaller pie,” he mentioned. MoffettNathanson sees acceleration into subsequent yr and is especially bullish on Fox’s sports activities choices, which embrace the Super Bowl, the World Cup, and a probable inflow of political promoting because the November midterm elections draw close to. Add within the firm’s information portfolio and Fishman sees Fox taking share from rivals. The inventory can be undervalued and if that continues, the analyst says the board may re-consider Fox’s future as a standalone firm. “As investors look for safe investments in this challenging market environment beset with macro headwinds, we continue to recommend FOXA…” he added. BJ’s Wholesale Club “BJ continues to prove itself as a ‘beyond the pandemic’ winner,” in response to Jefferies analyst Stephanie Wissink. The agency mentioned earlier this week there’s a lot to love about BJ as administration continues to strike the fitting steadiness between gross sales and income. “The club channel continues to extend reach & engagement with member counts growing and spend levels rising atop significant 2YR growth stacks,” she mentioned. Gas costs, inflation and the pandemic have all contributed to optimistic development at BJ, and Wissink expects that to proceed. The firm additionally has a secure provide chain, she wrote along with numerous “self-help initiatives,” like digital and merchandise growth. Still, Wissink says BJ’s complete addressable market is markedly underappreciated and there are not any indicators of a decelerate. Shares are down 12.4% this yr, and buyers searching for security ought to look no additional, the analyst mentioned. “Hide here,” she mentioned succinctly. T-Mobile “In volatile markets where sentiment has turned decidedly negative against companies and sectors that were once easy longs, TMUS is proving to be an increasingly safe place for investors to hide,” funding agency RBC mentioned. Shares of T-Mobile are up 15.6% this yr, and analyst Kutgun Maral says he expects the inventory to maintain delivering for buyers. The wi-fi large is coming off a blended earnings report in late April and competitors stays fierce, however the analyst says shoppers want to contemplate the larger image. Trends are very optimistic, he wrote, including that T-Mobile is actively gaining share in broadband, rural areas and enterprise enterprises. The firm can be properly positioned to renew buybacks within the close to future as T-Mobile works to “deliver on its credible subscriber and financial growth outlook,” he mentioned. Maral praised the corporate’s robust administration noting that T-Mobile has one of many “longest track records of beat-and-raises.” Taken collectively, RBC sees extra upside as T-Mobile rolls out extra of its 5G community. “We expect T-Mobile to outperform its peers based on favorable risk/reward characteristics,” he mentioned. Fox – MoffettNathanson, Buy ranking “Still a good place to hide. … As investors look for safe investments in this challenging market environment beset with macro headwinds, we continue to recommend FOXA as our only Buy-rated stock in traditional media. … Fox Corporation has a strong and unique hand with its sports and news portfolio mix that should allow the company to continue to outperform its peers by growing revenues and taking a greater share of a smaller pie. ” BJ’s Wholesale Club – Jefferies, Buy ranking “BJ continues to prove itself as a ‘beyond the pandemic’ winner. … The club channel continues to extend reach & engagement with member counts growing and spend levels rising atop significant 2YR growth stacks. … Hide here. … A number of self-help initiatives (e.g., gen merch expansion, SKU simplification, digital), unit growth, and participation in ongoing club industry share gains provide further secular catalysts.” Highwoods Properties – Baird, Outperform ranking “We think Office provides investors a place to hide with long lease durations, corporate tenants providing diversification against a weakening consumer, a fully-functioning Class A investment sales market, and meaningful discounts to underlying replacement cost. We believe HIW remains a strong option for investors looking to achieve the above criteria while also avoiding excess exposure to technology.” Synopsys – Needham, Buy ranking “No Place to Hide in a Bear Market? SNPS May Prove You Wrong … After a sudden decline of 20%+ in January, EDA (electronic design automation) stocks appear to have found the bottom and avoided major draw-downs despite significant deterioration in the macro environment. In a bear market, where investors lament they have ‘nowhere to hide,’ we think EDA stocks like SNPS are the right places to be. We raise our PT to $380 to reflect higher estimates and our strong conviction. T-Mobile – RBC, Outperform rating “In unstable markets the place sentiment has turned decidedly adverse in opposition to firms and sectors that had been as soon as simple longs, TMUS is proving to be an more and more secure place for buyers to cover. … T-Mobile continues to ship on its credible subscriber & monetary development outlook that ought to inflect upwards but once more in 2H22 because it laps community shutdown disruption & accelerated merger integration efforts, setting the stage for buybacks. … We count on T-Mobile to outperform its friends primarily based on favorable threat/reward traits.”
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