The latest warning from the Fed about a possible economic slowdown and higher inflation suggests that the worst is not over yet.
Bank of America (BofA) says that with the increasing uncertainty in the macroeconomic environment, stocks with a track record of weathering previous downturns and low crowding risks with low earnings volatility could make sense.
In a recent report, the investment company named quality stocks which historically offer more stable returns during market downturns.
Analysts at BofA recommend that you buy J&J and Clorox by 2025.
Clorox Co. (NYSE:CLX)
Bank of America is bullish about Clorox despite macro concerns that could continue to weigh down on US stocks, as it’s somewhat protected from President Trump’s trade policies.
Clorox is not heavily reliant on international sales. This may help it to remain resilient as tariffs increase.
In a recent report, the investment firm informed clients that “we see companies with more exposure to domestic markets as better positioned than multi-national peers who face greater pressure and volatility due to a changing FX and tariff environment.”
BofA expects CLX to rise from $172 to $172, which is a potential gain of more than 20 percent.
Clorox stock is even more attractive in 2025 with a healthy dividend yield of 3.37%.
The cleaning products company reported a better-than-expected second-quarter revenue last month.
Clorox also raised its guidance at the time for the full year.
The management expects the adjusted earnings per share to range between $6.95 and $ 7.35. Its previous forecast was up to $6.90 per share.
Johnson & Johnson (NYSE JNJ)
Bank of America also has a positive view of Johnson & Johnson despite the macro-uncertainty and the ongoing market decline, as it has a track record of outperforming in difficult times.
The investment firm recommends that investors own JNJ shares in order to navigate the market weakness, as its focus on M&A could improve its market cap and its topline growth by 2025.
Johnson & Johnson is a “buy”, as the multinational is committed to resolving talc litigation.
“Better-than-expected launch of new products and pipeline success greater than we model” were among other reasons that BofA cited for its constructive view on JNJ.
Bank of America has a $171 target price on the NYSE listed firm, which indicates a potential gain of more than 10% over current levels.
Johnson & Johnson, like CLX, is a dividend stock with a current yield of 3.03%. This makes it a great investment for 2025.
Bank of America isn’t the only firm to be bullish on JNJ.
The consensus rating for Johnson & Johnson is also “overweight”.
This post BofA reveals the stocks that have a history of steady return despite market volatility may be updated as new information becomes available
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