CNBC’s Jim Cramer offered investors a list of stocks he believes will help investors’ portfolios cope with geopolitical and economic issues currently in the stock market.
“You have to be selective because the market remains volatile. That means choosing defensive stocks that can recover even with inflation and the real possibility of a Fed-mandated recession,” he said.
S&P 500 Slip deep into bear market territory On Tuesday, while the Dow Jones Industrial Average saw a slight decline. The Nasdaq Composite saw marginal gains.
Cramer said investors would like to choose cheap names with dividend protection and healthy growth, and came up with a list of stocks in the S&P 500 he believes they should keep an eye on.
To create the list, they first ran a screen on the index for companies that met the following three criteria:
- Its stock trades at less than 16.5 times earnings (the average stock in the S&P 500 currently trades at 16.5 times earnings, according to Cramer).
- Earnings are expected to increase both this year and next year
- Its stock is up more than 3.5% to stay above the benchmark 10-year Treasury yield
Left with 23 names that met the above requirements, Cramer picked his 10 favorites.
Here is the list:
- Devon Energy
- Huntington Bankshares
- wiki properties
- newell brands
- Advance Auto Parts
- NRG Energy
Disclosure: Cramer’s Charitable Trust owns shares in Cisco and Devon Energy.