Stocks like T-Mobile & BJ’s are viewed as safe in a bear market
Wall Street analysts believe that there are many companies that can provide high portfolio protection in the midst of market volatility. Analysts believe these stocks are able to weather volatility due to their unique qualities. CNBC Pro reviewed the most important Wall Street research in order to identify analysts’ top choices for managing market volatility. The list includes Synopsys and T-Mobile, Highwoods Properties, T-Mobile – BJ’s Wholesale Club and Fox. Robert Fishman, a MoffettNathanson analyst said that Fox is “still a great place to hide.” He made this statement in a note to clients. The shares of the company have fallen 3.9% in the past year. While Fishman acknowledges that traditional media can be difficult, he urges investors to keep their stock. He said that Fox Corporation’s sports and news portfolio combination is strong. This should enable the company to grow revenues while also taking more of an enviable share. MoffettNathanson anticipates a strong year ahead and is most bullish on Fox Sports, including the Super Bowl, World Cup and potential political advertising in the near future. Fishman believes Fox could be taking market share away from other competitors if it adds the news portfolio. Fox stock is undervalued, and the analyst suggests that the board might rethink Fox’s future as an independent company. He said that investors are looking for safer investments in this difficult market climate, which is rife with macro headwinds. “We continue to recommend FOXA …”.” BJ’s Wholesale Club Stephanie Wissink, a Jefferies analyst said that BJ is proving itself to be a “beyond pandemic” winner. BJ’s Wholesale Club stated earlier in the week that there was much to love about BJ, as BJ’s management is continuing to find the perfect balance between profits and sales. “The club channel continues to extend reach & engagement with member counts growing and spend levels rising atop significant 2YR growth stacks,” she said. BJ’s positive growth has been aided by inflation, gas prices, and the pandemic. Wissink believes that this trend will continue. She also noted that the company has a reliable supply chain and a variety of self-help initiatives, such as digital expansions and merchandise expansion. Wissink claims that BJ’s total addressable markets are underappreciated. There is no sign of a slowdown. Investors looking for security should be aware that share prices are down 12.4% in this year. She said it succinctly, “Hide here.” T-Mobile Investment firm RBC stated that TMUS was proving to be an increasing safe haven for investors in volatile markets, where sentiment is turning decisively negative towards companies and industries once considered easy longs. T-Mobile shares are up 15% this year and Kutgun Maral, an analyst at RBC says that he believes the stock will continue to deliver for investors. The mixed earnings report by the wireless giant in late April was disappointing. Competition remains fierce. However, Kutgun Maral says that clients should look at the big picture. T-Mobile’s growth in broadband, rural and small business markets is very encouraging, he said. T-Mobile’s ability to bring back buybacks is also a strong advantage, he stated. This comes as the company works to improve its subscriber and financial growth prospects. Maral expressed appreciation for the company’s solid management, noting T-Mobile’s “longest record of beat-and-raises.” RBC believes that T-Mobile’s 5G network will bring more benefits to the company. He stated that T-Mobile will outperform other carriers based upon its favorable risk/reward attributes. Fox – MoffettNathanson Buy Rating “Still an excellent place to hide.” Investors are looking for reliable investments in this difficult market, which is plagued by macro headwinds. We continue to recommend FOXA. This stock has been rated as a Buy in traditional media. Fox Corporation is able to take a bigger share of the pie by growing its revenues through a unique combination of its news and sports portfolios. BJ’s Wholesale Club Jefferies – Buy rating. BJ has proven itself to be an ‘above the pandemic’ winner. … The club channel continues to extend reach & engagement with member counts growing and spend levels rising atop significant 2YR growth stacks. … You can hide here. You can also find secular opportunities for self-help, such as gen merch growth, SKU simplification and digital, unit growth, or participation in club industry share gains. Highwoods Properties- Baird, Outperform Rating “Office provides an investor with a safe haven, long lease terms, corporate tenants that provide diversification against weakening consumers, a functioning Class A investment market and significant discounts on underlying replacement costs. HIW is a solid option for those investors who want to meet the above criteria, but also avoid excessive exposure to technology. Synopsys Needham, Buy rating: “No place to hide in a bear market?” EDA Stocks May Have Found the Bottom… Despite a sharp decline of 20%+ during January, EDA (electronic device automation) stock prices appear to be at the bottom. EDA stocks, such as SNPS, are an excellent choice in a bearish market. Investors complain that they have no place to hide. Our PT is now $380 due to higher estimates and our firm conviction. T-Mobile RBC, Outperform Rating “In volatile markets, where sentiment is turning decisively negative towards companies and sectors which were once easy longs. TMUS has proven to be an increasing safe haven for investors. … T-Mobile continues to deliver on its credible subscriber & financial growth outlook that should inflect upwards yet again in 2H22 as it laps network shutdown disruption & accelerated merger integration efforts, setting the stage for buybacks. T-Mobile will outperform peers on the basis of favorable risk-reward characteristics.