Last year was one of the worst for the stock market in more than a decade. The three major US indexes – the S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite – all had their worst year since 2008. The MSCI World Index wasn’t much better, and ended the year with its worst performance since 2008. When market experts warned investors of tough times ahead, CNBC Pro used uses FactSet data to screen for low-volatility stocks that not only beat the market in 2022, but are expected to climb even higher this year. The following MSCI World stocks ended the year with dismal results, were rated by the majority of analysts as buys, and had the potential to average at least 20% upside over the next 12 months. They are also less volatile than indices, with a 3-year historical beta of less than 1. “Beta” is a measure of a stock’s volatility; A beta of 1 means the stock’s volatility is equal to the market, while a beta below 1 means the stock is less volatile than the market. Telecommunications American telecom giant T-Mobile appeared on the screen. The company increased its market capitalization by more than 20% last year, but analysts for the stock think it could still grow by 27%. Its largest shareholder Deutsche Telekom also made the list, with the company’s average gain of 34.5%. Telecom stocks are often seen as a relatively defensive game, with dividends being the main reason they are so popular among income-seeking investors. Utilities Traditionally, the sector has been seen as a safe haven during volatile market times, due to its stable, regulated earnings, inflation-based contract terms, and dividend income. higher than in other sectors. The sector ended the year down 3.6%, making it the second-best performer of the index’s 11 major sectors. It also has the second-highest dividend yield, according to FactSet data. Germany’s RWE and Chile’s Enel were among the gadget names that popped up on CNBC’s screens, with historical betas of 0.8 and 0.2, respectively. Shares of RWE deliver a 16.4% return in 2022, but analysts expect a further gain of 25.8%. Enel Chile has had a standout year, with the stock growing 30.8% in 2022, but analysts think it could still add another 43%. Video Game Giants Activision Blizzard is another well-known name on the list. The stock is up 15% last year, but analysts expect it to rise another 20%. It has a historical beta of 0.3. The company is the subject of Microsoft’s $68.7 billion acquisition proposal, but the deal could be in jeopardy as the US Federal Trade Commission seeks to block it on anti-competitive grounds. . Nintendo also made the list. In December, Microsoft announced that it had signed a 10-year commitment to bring the popular video game franchise Call of Duty to Nintendo following the completion of its acquisition of Activision Blizzard, following a similar commitment to bring this game to Sony’s Xbox. The moves are widely seen as an attempt by Microsoft to assuage concerns among regulators and competitors about the Activision deal. Fertilizer stocks Nutrien and Corteva fertilizer stocks also appear on the screen. Shares of Nutrien are up just 4% last year, down significantly from April’s 52-week high of 147.93 Canadian dollars ($109.34). Still, about 54% of analysts rate the stock as a buy, with consensus estimates showing the stock’s average gain of 38.6 percent.
