Evercore ISI has rolled out a fresh selection of stocks that they believe could help investors navigate the ongoing market turbulence, which is expected to persist in the upcoming months. The unpredictability of President Donald Trump’s tariff policies has led to volatile market swings, shaking investor confidence. Moreover, lingering concerns about prolonged inflation have added to the unease. Although we saw some recovery in the markets on Friday, the S&P 500 officially dipped into correction on Thursday, closing more than 10% below its record high. The Nasdaq Composite is also in correction territory, and all three major U.S. stock indexes have dropped over 5% this month. Looking to shine a light amid the downturn, Evercore analysts have pinpointed stocks they describe as “all-weather outperformers.” These are companies whose current market price and valuation contradict the robustness of their core fundamentals after the recent sell-off.
“Volatility brings opportunity,” observed Julian Emanuel, Evercore ISI’s senior managing director, in a note to clients. He noted that these market discrepancies have set the stage for highlighted companies to potentially outperform the S&P 500 over the next year, regardless of how various uncertainties play out. Among the firm’s top-rated picks are Walmart and Exxon Mobil. Let’s delve deeper into why these might be worth considering:
Walmart, a favorite for many consumers, has become even more appealing amidst inflation worries, increased grocery prices, and concerns over the U.S. economy’s trajectory. The retail giant is a dividend aristocrat, proudly announcing its 52nd year of increasing dividends. Though Walmart has cautioned about slower profit growth this fiscal year, Evercore ISI maintains a bullish stance with a $100 price target, anticipating a 17% potential upside. Currently, Walmart’s shares have dipped 5.5% for the year but have soared around 40% over the past year.
Chipotle has experienced a rough patch, with its stock down by about 17% this year, yet it remains an “all-weather” pick according to Evercore ISI. They have set a price target of $72, indicating a potential 44% gain over the next year. Noteworthy is the 2.7% rise in Chipotle’s stock on Friday after Loop Capital upgraded it from hold to buy, citing the recent dip as an attractive buying opportunity. Additionally, the company’s limited reliance on Mexican imports (about 2%) positions it well against tariff-related risks.
Evercore ISI also sees potential in Procter & Gamble and CVS Health for weathering market volatility. CVS shares have climbed 48% this year, outperforming their competitors and the broader market due to investor optimism surrounding the pharmacy chain’s ability to meet its full-year 2025 adjusted earnings target and realize its cost-saving goals. Evercore ISI has an $80 price target for CVS, projecting a 21.8% upside from Friday’s closing price.
