Goldman Sachs recommends stable stocks for market volatility

Goldman Sachs recommends that investors focus on stable stocks to navigate current market volatility. This advice comes as uncertainty grows from policy changes in Washington. The stock market has faced challenges, with the S&P 500 recently dipping into correction territory. Concerns about tariffs on imports from Mexico, China, and Canada have raised fears of an economic slowdown. President Trump has hinted at a possible economic transition, but officials, like Treasury Secretary Scott Bessent, believe a recession is not imminent. According to Goldman Sachs, investors are shifting towards lower volatility stocks due to this uncertainty. Analyst Deep Mehta emphasized the importance of finding stocks with stable revenue and solid growth potential. He noted that investors should seek stocks that are trading below historical averages. Goldman Sachs identified specific criteria for stocks to consider. These include low sales growth volatility, consistent sales growth, and trading significantly below historical price-to-earnings ratios. Stocks on their recommended list are rated as "buy." Beverage giant PepsiCo is one of the recommended stocks. While its shares have decreased by about 2% this year, they have outperformed the S&P 500. Analysts highlight Pepsi's strong growth strategies, especially in emerging markets, as key to its long-term success. Waste Management is another stock on the list. Currently trading at a lower earnings ratio than its historical average, analysts expect steady profitability from its core operations. Improvements in landfill operations and mergers and acquisitions in waste management are anticipated to boost growth. Other companies included in the Goldman Sachs recommendations are Travelers and Microsoft.