CNBC’s Jim Cramer on Tuesday offered investors a list of stocks he believes will help investors’ portfolios withstand the geopolitical and economic issues currently roiling the stock market.
“When the market comes down so far, so fast, you can find genuinely good buying opportunities,” the “Mad Money” host said.
“You’ve got to be selective because the market remains horrific. That means picking at the kind of defensive stocks that can hold up just fine even with inflation and the very real possibility of a Fed-mandated recession,” he said.
The S&P 500 slipped deeper into bear market territory on Tuesday, while the Dow Jones Industrial Average saw a small decline. The Nasdaq Composite saw a slight gain.
Cramer said that investors will want to pick up 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 be eyeing.
To create the list, he first ran a screen on the index for companies that fit 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)
- It is expected to grow earnings both this year and next year
- Its stock yields more than 3.5%, in order to stay above the benchmark 10-year Treasury yield
Left with 23 names that fit the above requirements, Cramer picked out his 10 favorites.
Here is the list:
- Devon Energy
- Huntington Bancshares
- VICI Properties
- Newell Brands
- Advance Auto Parts
- NRG Energy
Disclosure: Cramer’s Charitable Trust owns shares of Cisco and Devon Energy.
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