Bank of America is offering up a selection of stocks to help investors sleep soundly during bouts of market volatility. The picks come on the heels of a rollercoaster week for Wall Street. Stocks plunged Monday, with the S & P 500 suffering its worst day since 2022 , after a weak July jobs report fueled recession concerns and the unwind of the yen “carry trade” drove Japan’s stock market to its steepest loss since 1987. The U.S. market later recouped much of that decline, with the broad S & P 500 index posting its best day since 2022 just three days later, on Thursday after weekly labor market data restored faith in the U.S. economy. Bank of America warns that this week’s action may be a taste of what’s to come, noting that the slope of the yield curve and the November presidential election suggests more whipsaw action to come. Against that backdrop, the Wall Street investment bank screened for high quality stocks that it says are under-owned by investors, have a buy rating from BofA and have low volatility, as measured by the 5-year beta . “Historically, one of the best hedges against volatility has been via high quality stocks – we use earnings and dividend stability as our key measure,” BofA strategists led by Savita Subramanian wrote. Here are some of the companies that made the list: Several consumer staples stocks showed up, with the S & P 500 sector up more than 11% this year. Walmart and PepsiCo were among the names that met the screen’s criteria. Shares of Walmart have surged 29% since the start of the year, while PepsiCo is lttle changed, up 1%. Procter & Gamble was also highlighted among the low-beta names, with shares up more than 16% this year and 6% since the start of August alone. Last month, the maker of Tide detergent reported mixed fiscal fourth-quarter results , topping earnings estimates but falling short of revenue expectations due to disappointing demand in China. PG 1M mountain Shares over the last month Lockheed Martin was another low-beta stock that made the cut. Shares of the aerospace and defense company have rallied more than 21%, outperforming the market year to date. Some consumer discretionary companies also emerged, including Starbucks . The coffee chain posted fiscal third-quarter results last month , with revenue falling short of estimates due to weak demand. U.S. same store sales declined for a second consecutive quarter. SBUX YTD mountain Shares this year Starbucks has also gained attention from investors disappointed by the company’s performance, with Elliott Management recently acquiring a significant stake . Shares have plummeted 22% this year. M & T Bank , Home Depot and Cisco Systems also made the BofA screen. Consolidated Edison offered the lowest beta of the group at 0.34. Shares of the New York utility have added more than 10% this year.
