The market turmoil has put many investors on edge, but Wall Street analysts said this week that there is a large group of companies offering a high level of portfolio protection. These stocks have unique characteristics that analysts believe can withstand almost any amount of volatility. CNBC Pro researched top Wall Street research to find analysts’ top picks for navigating market uncertainty. They include Fox, BJ’s Wholesale Club, T-Mobile, Highwoods Properties, and Synopsys. “Fox is still a good place to hide,” Robert Fishman, an analyst at Moffett Nathanson, said in a note to clients. Shares of the company are down 3.9% this year, and while Fishman acknowledged that traditional media have struggled, he urged investors to stick with the stock. “Fox Corporation has a strong and unique hand with its sports and news portfolio mix that will allow the company to continue to outperform its peers by increasing revenue and taking a larger share of the smaller pie,” he said. Moffett Nathanson sees an acceleration next year and is particularly optimistic about Fox’s sports offering, which includes the Super Bowl, the World Cup and a potential influx of political ads as the November midterm elections approach. Add to the company’s news portfolio and Fishman sees Fox taking a cut from competitors. The stock is also undervalued, and if this continues, the analyst says the board could reconsider Fox’s future as a stand-alone company. He added, “As investors look for safe investments in the challenging market environment of macro headwinds, we continue to recommend FOXA…”. BJ’s Wholesale Club “BJ continues to establish itself as the winner ‘behind the pandemic,'” according to Jefferies analyst Stephanie Wiesink. The company said earlier this week that there is a lot to like about BJ as management continues to strike the right balance between sales and profits. The club expands reach and participation as membership numbers grow and spending levels rise above large growth groups over two years.” Gas prices, inflation and the pandemic have contributed to positive growth at BJ Bank, and Wissink expects that to continue. She writes that the company also has a stable supply chain as well A number of “self-help initiatives,” such as digital expansion and merchandise. However, Wissink says the total addressable BJ market is significantly underappreciated and there are no signs of slowing. Shares are down 12.4% this year, and investors looking for “Hide here,” investment firm RBC said, succinctly. “In volatile markets where sentiment has definitely turned negative against companies and sectors that were once long easy, TMUS has proven to be a It was increasingly safe for investors to hide.” T-Mobile shares are up 15.6% this year, and analyst Kutgun Maral says he expects shares to continue to be offered to investors. The wireless giant releases a mixed earnings report in late April, and competition remains fierce, but the analyst says customers need to look at the bigger picture. Trends are very positive, he wrote, adding that T-Mobile is actively gaining a stake in broadband, rural areas and commercial businesses. He said the company is also well positioned to resume buybacks in the near future as T-Mobile “works to meet the expectations of its financial growth and trusted subscribers.” Maral praised the company’s strong management, noting that T-Mobile has one of the “longest track records of hitting and lifting.” Taken together, RBC sees more upside as T-Mobile rolls out more of its 5G network. “We expect T-Mobile to outperform its peers based on preferred risk/reward characteristics,” he said. Fox – MoffettNathanson, Buy Rating “Still a good place to hide. … As investors look for safe investments in this challenging market environment experiencing macro headwinds, we continue to recommend FOXA as our only stock bought in traditional media… Fox Corporation has a strong and unique hand with its sports and news portfolio mix that will allow the company to continue to outperform its peers by increasing revenue and taking a larger share of the smaller pie.” BJ’s Wholesale Club – Jefferies, Buy rating “BJ continues to prove itself as a ‘Post-Pandemic’ winner. … The Club Channel continues to expand reach and engagement as membership numbers grow and spending levels rise above large growth groups over two years. … Hide here. … Provides a number of self-help initiatives (at For example, general merchandise expansion, SKU simplification, and digital), unit growth, and sharing of ongoing club industry share gains further secular catalysts.” Highwoods Properties – Baird, Rating Outperform “We believe Office offers investors a place to hide with long lease terms, corporate tenants diversification against weak consumer, a fully functional Class A investment sales market, and significant discounts on basic replacement cost. We believe HIW It remains a solid choice for investors looking to achieve the above criteria while avoiding excessive exposure to technology.” Synopsys – Needham, Buy Assessment ‘Nowhere to hide in a bear market? SNPS may prove you wrong…After a sudden 20%+ drop in January, EDA (Electronic Design Automation) shares appear to have found a bottom and avoided a big pullback though Significant deterioration in the macro environment. In a bear market, as investors bemoan “there’s nowhere to hide,” we think EDA stocks like SNPS are the right places to be. We raise PT to $380 to reflect our higher estimates and strong conviction. T-Mobile – RBC, rating Outperform “In volatile markets where sentiment has certainly turned negative against companies and sectors that once long been easy, TMUS is proving to be an increasingly safe place to hide for investors. … T-Mobile continues to deliver its forecast for reliable financial and subscriber growth that should reverse again in the second half of 2017 as it cuts through network disruptions and accelerated merger integration efforts, clearing the way for buybacks. …we expect T-Mobile to outperform its peers based on preferred risk/reward characteristics. “
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