With stock markets in sell-off mode and no signs of stabilizing on the horizon, CNBC Pro sought to find the elite stocks that can provide steady performance, generate income and buck the downturn. Just 10 stocks made the cut. Despite opting to skip a rate hike at the September Federal Open Market Committee meeting, the central bank nonetheless signaled fewer cuts than previously expected next year. Wall Street largely took documents from the meeting and comments from Federal Reserve chair Jerome Powell to imply higher-for-longer interest rates. Powell added that the Fed anticipates one more rate hike before the end of the year. Stocks are set to end September, a historically lackluster period, with losses in the final full week of trading . Major indexes have been lower from the start of the month, with the S & P 500 and Nasdaq Composite pulling back 4.2% and 5.9%, respectively. The 30-stock Dow Jones Industrial Average has slipped 2.4% from the start of the month. Against this backdrop, here’s the list of defensive stocks to play a mixed market, compiled using the new CNBC Pro stock screening tool . All stocks on the list meet the following criteria: Beta rating, which measures a stock’s implied risk to market moves, under 1. A beta rating above one typically indicates higher volatility. Shares have been in the green from the start of the year. Average analyst consensus rating of buy. Average analyst price target implies at least 10% upside from current trading levels. Grocery store operator Kroger has the lowest beta rating on the list of 0.47, and shares have added about 2.4% from the start of the year through Friday’s $45.66 close. Average analyst forecasts imply more than 10% upside from current trading levels. KR YTD mountain Kroger stock has added 2.4% from the start of the year. On Sept. 8, the company reported fiscal second-quarter earnings of 96 cents per share, after adjustments, outpacing the average analyst estimate of 91 cents per share, according to LSEG, formerly known as Refinitiv. However, Kroger’s revenue of $33.85 billion fell short against expectations of $34.13 billion. The slowing pace of inflation is expected to weigh on Kroger’s sales growth, but the company stood by its full-year outlook. Fast food giant McDonald’s has a 0.65 beta rating, and its stock has added about 3% from the start of the year. The average analyst price targets implies 21% upside for McDonald’s stock from its current trading levels. The company recently increased royalty fees for new franchisees from 4% to 5%. It was the first change to this fee structure in more than 30 years. MCD YTD mountain McDonald’s stock has climbed 3.3% from the start of 2023. Elsewhere, Hasbro maintains the highest beta rating on the list of 0.72, while the stock has climbed nearly 7% from the start of the year. HAS YTD mountain Hasbro stock has ticked up nearly 7% so far this year. The company has been taking steps to focus on its toy and gaming segment. Last month, it announced plans to sell its production house eOne to Lionsgate . Hasbro said it will use the proceeds to pay down its floating debt. Other stocks that made the list include agricultural products company Bunge , Oreo-owner Mondelez and medical device manufacturer Medtronic .
