We've plunged into a stock market correction that's nearing bear-market territory amid escalating coronavirus fears and a potential oil-price war. Some of the headline numbers have been eye-popping. The S&P 500 Index dropped roughly 18% in the course of two weeks - something it took nearly two months to do during the near-bear market in the fourth quarter of 2018. And oh, the volatility. The index has endured eight moves of 3% or more (in either direction) since
Goldman Sachs analysts are calling for the end of the current bull market: "We believe the S&P 500 bull market will soon end," they write, projecting another 15% decline in stocks from here. However, Merrill Lynch strategists, led by
This brutal market environment has investors seeking out "safe havens" - investments that are relatively more insulated if economic conditions worsen. Many safe-haven stocks boast products that people need regardless of the economic landscape (think health care, utilities and consumer staples). However, as the broader market finds itself further mired in the downturn, pinpointing the tickers that can hold up strong in the long run isn't easy. That's where TipRanks comes in.
Here are five save-haven stocks to buy on the current weakness. Using TipRanks' Stock Screener tool, we were able to zero in on five stocks the analyst community widely believes can maintain their bearings amid heightened levels of volatility. No stock is perfectly safe, but these companies are widely expected to come out on the other side better off than their peers.
Mondelez International
Market value: $78.7 billion
TipRanks consensus price target: $64.18 (17% upside potential)
TipRanks consensus rating: Strong Buy
For
Mondelez, one of analysts' top dividend stocks heading into 2020, is sitting on a less-than-1% loss year-to-date. That sounds bad ... until you consider the stock is outperforming the S&P 500 by more than 10 percentage points.
MDLZ isn't completely out of the woods, of course. Investors have expressed concern that given the company's
Overall, Dickerson is bullish on MDLZ's long-term growth prospects, rating the company at Buy and giving it a $68 price target, implying 24% upside over the next 12 months.
A Strong Buy consensus rating breaks down into 15 Buys and 3 Holds, illustrating that most of
Johnson & Johnson
Market value: $374.2 billion
TipRanks consensus price target: $166.38 (17% upside potential)
TipRanks consensus rating: Strong Buy
Turning to the analyst community, Citigroup's
While Wuensch admits it might take some time before
Citigroup's analyst is optimistic about JNJ's long-term growth prospects, and cites it among her stocks to buy. She has a $163 price target on the stock, implying another 15% upside from here within the next year or so. And her take is largely in line with the rest of the analyst community; eight out of eight pros that have sounded off on the stock call it a Buy. Check out who else is behind
CVS Health
Market value: $81.6 billion
TipRanks consensus price target: $89.30 (43% upside potential)
TipRanks consensus rating: Strong Buy
Pharmacy chain
When it comes to vertical integration, CVS leads the pack. The managed care organization owns not only self-managed pharmacies, but also PBMs (pharmacy benefit managers). Hill believes this integrated care delivery stands to not only cut costs but also enhance beneficiary access. "Benefit design and beneficiary steerage should help bend the cost curve," he writes.
Hill also cites an attractive risk-reward profile and "highly compelling" valuation relative to its peers. He rates the stock Buy with a $109 price target, which would be a massive 74% gain from current levels.
The rest of the Street is a little more conservative about their price targets, but still heavily in the bull camp. Of 11 analysts sounding off in recent months, nine say Buy while the other two say Hold. That puts CVS among safe-haven stocks with a Strong Buy consensus rating. You can learn more about the analyst community's views on CVS via TipRanks' consensus breakdown.
Avadel Pharmaceuticals
Market value: $322.0 million
TipRanks consensus price target: $14.33 (45% upside potential)
TipRanks consensus rating: Strong Buy
Avadel's relatively small size means it's still going to move strongly on headlines related to its clinical trials. However, given that nature, AVDL's trading is fairly disconnected from the broader market - not a bad trait to have right now. Indeed, shares are up 14% year-to-date, and their future looks bright amid a "REST-ON" Phase 3 study examining FT218, which treats excessive daytime sleepiness (EDS) as well as cataplexy in narcolepsy patients.
"We believe that the majority of the value of AVDL is the FT218 program which has completed enrollment and on track to read out in 2Q20," writes
"Given the FT218 pharmacokinetic profile ... combined with the known efficacy profile of sodium oxybate, we believe there is a high probability of success for the REST-ON pivotal study," he continues.
There's only a small cohort of analysts covering this stock, which is to be expected of a small cap. But three pros have written opinions on the stock over the past month, and each of them has Avadel among their stocks to buy. Discover how other analysts rated AVDL.
iClick Interactive Asia Group
Market value: $293.3 million
TipRanks consensus price target: $7.75 (56% upside potential)
TipRanks consensus rating: Strong Buy
Chances are you haven't heard of
ICLK helps marketers from all over the world reach audiences in
iClick has become one of the top online marketing names thanks to its superior AI and machine learning-based technology. It has amassed a wealth of consumer data that covers more than 800 million users with active profiles.
It doesn't hurt that iClick has managed to attract some heavyweights as partners. For instance, it is a platinum partner with internet giant
"We estimate marketing solution revenue to grow at 20% year-over-year and 18% year-over-year in 2019 and 2020, benefiting from the secular trend of
Like Avadel, iClick isn't exactly teeming with analyst coverage. But it has received four Buys across the four analysts writing about the stock over the past six months, and its completely online presence makes ICLK one of the best potential safe-haven stocks to buy amid the coronavirus outbreak. Investors interested in learning more can see additional ICLK analysis on TipRanks.
Maya Sasson is a Contributing Writer for Kiplinger.

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