Bank of America highlights resilient stocks during downturns

Bank of America analysts have identified stocks that tend to perform well during market downturns. They looked for companies that have outperformed the market during past sell-offs at least 80% of the time. Investors are currently facing a tough market due to President Donald Trump’s trade policies. The S&P 500 has dropped about 7% in the past month and recently fell into correction territory. There are also signs of weaker consumer sentiment, and the Federal Reserve expects rising inflation alongside slowing economic growth. To find resilient stocks, Bank of America set specific criteria. Stocks had to be part of the Russell 1000, outperform during market pullbacks of at least 10% since 1983, have a good quality rating, and be less favored by active fund managers. Among the stocks highlighted, Church & Dwight and Clorox stand out. Church & Dwight has a hit rate of 90%, while Clorox has an 81% rate. Both companies pay dividends, with Church & Dwight yielding 1.1% and Clorox at 3.4%. Johnson & Johnson is another strong performer, with a hit rate of 88%. Its stock has increased by 4% over the last year and has a dividend yield of 3%. Bank of America has raised its price target for Johnson & Johnson, suggesting potential for further growth. Other notable names include PepsiCo, with a hit rate of 88%, and NextEra Energy, which has a 91% hit rate. These stocks could be a smart investment choice as the market remains unpredictable.