The stock market in March is looking grim, but certain “fortress” stocks can allow investors to play defense and beat the market. All the major indexes are headed toward a losing February. As of Monday’s close, the Dow Jones Industrial Average is down 3.5% for the month. Meanwhile, the S & P 500 and Nasdaq Composite are down 2.3% and 1%, respectively, in February. Concerns over persistent inflation, further fueled by January’s higher-than-expected rise in the core personal consumption expenditures index , sparked a broad market sell-off. Many investors now believe that the bear market is here to stay, with Morgan Stanley’s chief U.S. equity strategist Mike Wilson stating that “March is a high risk month for the bear market to resume .” With this backdrop, CNBC screened for fortress stocks that can withstand and outperform the market. The following list features stocks that had low volatility levels, or a beta less than 1.0. They also have a dividend yield greater than 2%, as well as earnings growth higher than 1% in 2023. To beat the market, a stock must also be up more than 3.7% year to date. Here are the top 10 fortress stocks from our screener: Several regional banks with solid finances made the list, including Cincinnati Financial , M & T Bank and U.S. Bancorp . Piper Sandler recently upgraded U.S. Bancorp to overweight from neutral, saying it is “one of the sturdiest large regional stories in an uncertain environment.” U.S. Bancorp’s per-share earnings in 2023 are projected to grow by almost 35%, with current dividend yields at 4.0%. However, while shares have gained more than 9% so for this year, the stock has tumbled 15% over the past 12 months. Power company Edison International also made the cut, with its dividend yield currently at 4.3%. The stock is well liked by analysts, with buy ratings from 43.7% percent of analysts covering the name. Edison also has shown steady growth, with shares up 7% over the past 12 months. Garmin was the only tech company on the list, with its per-share earnings expected to grow 2.5%. The fitness tracker maker recently posted fourth-quarter earnings that beat consensus estimates, according to FactSet. Shares have rallied more than 6% in 2023, but they are down almost 11% over the past 12 months. To be sure, analysts are mixed on the stock, with just 28.5% of them rating it a buy, and 71.4% issuing a hold rating. Real estate investment trust UDR has the highest 2023 expected per-share earnings growth on the list of 95.4%. Although its shares have dropped 21% in the past 12 months, they have rallied about 12% year to date. Analysts are also optimistic on the stock, with half of those covering it issuing a buy rating, and an average price target with a 9.4% upside from the stock’s Monday closing price.
Sumber: www.cnbc.com
