The stock market is going through a period of growth volatility, with Wall Street showing signs of slowing. According to JPMorgan, it may be time to adopt one defensive strategy. The main stock market indices, including theS&P 500 and the Nasdaq Compositehave seen significant declines since the beginning of the year, while enthusiasm for theartificial intelligence seems to be decreasing. Since the peak in March, the S&P 500 has lost around 1.70% and the Nasdaq Composite has lost 1.65%.
In this context of uncertaintyJPMorgan suggests focusing on stocks traditionally defensivelike those of utilities and gods basic consumer goods. These sectors are known to offer greater stability during economic turmoil, thanks to their resilience and consistent returns. Here are some of the best stocks recommended by JPMorgan for dealing with periods of market instability.
3-month performance XLU ETF vs S&P500
Source sectorspdrs
1) NRG Energy
NRG Energy (NRG) it is one of the main components of the fund Utilities Select Sector SPDR (XLU), with a weight of 14.37%. NRG Energy, a pillar of energy sectorreported an exceptional first quarter of 2024, exceeding expectations with a notable increase in its EBITDA rectified, which grew by 31% compared to the previous year. This result is due to growing energy demand, fueled by electrification and the growth of GenAI data centers. NRG Energy has reaffirmed its financial guidance for 2024, indicating confidence in its diversified strategy and growth prospects.
NRG Energy stock daily chart
Source Tradingview
NRG Energy has identified Texas and Northeast markets as strategic locations to meet growing electricity demand. The company outlined four pillars for value creation: residential energy, business-to-business platforms, Texas generation fleet and co-location real estate. With 21 sites spread across 21,000 acres, NRG Energy has significant development potential for the future.
Looking ahead, NRG Energy is committed to maintaining a solid growth target of between 15% and 20%, expecting further free cash flow growth thanks to the optimistic outlook curve forecast. The company will continue to return value to shareholders and explore new investment opportunities, leveraging its diversified supply strategy to generate long-term sustainable value.
2) Duke Energy Corporation
Philip Morris stock daily chart
Source Tradingview
Duke Energy Corporation (DUK)a major energy provider in the United States, announced strong financial results for the first quarter of 2024.
The company has registered a adjusted earnings per share (EPS). of $1.44, beating the analyst consensus of $0.06, set at $1.38. Quarterly revenue also beat forecasts, coming in at $7.67 billion versus the $7.31 billion expected. This robust growth reflects Duke Energy’s strategic approach as it continues to invest in clean energy and grid enhancements to support energy transition sustainable in the long term.
Duke Energy is committed to its goal of achieving net-zero emissions by 2050. The strong performance in the first quarter confirms that the company is making the most of its investments to expand and modernize energy infrastructure. Lynn Good, president and CEO, said: “Our strong performance reflects a commitment to operational excellence and our strategy for cleaner energy solutions”. Looking ahead, Duke Energy provided cautious but stable guidance, indicating adjusted EPS of $5.85 to $6.10 for 2024.
3) Philip Morris International
Duke Energy Corporation stock daily chart
Source Tradingview
Philip Morris International (PM) it is a company that continues to generate interest among investors thanks to its ability to generate growth and consistent returns. After splitting from Altria in 2008, Philip Morris International gained the right to sell its brands outside the United States, diversifying its customer base and offering greater flexibility in sales and marketing strategies. The historical growth rate ofearnings per share (EPS) is 4.8%, but the prospects for the future seem even more promising. Analysts expect Philip Morris’ EPS to grow by 6% this year, beating the industry average by 5.8%.
Philip Morris analyst recommendations
Source Yahoo
In the last reported quarter, the company posted earnings of $1.38 per share, confirming its ability to generate consistent profits. With this solid foundation, Philip Morris International remains an attractive choice for investors looking for growth stocks with solid return potential.
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