For investors looking for safe investments in volatile markets, there is a whole range of large-cap stocks, particularly in the healthcare industry, that may make for attractive investments. After a sharp global sell-off on Monday, stocks enjoyed several sessions of wild gains and closed at levels that nearly reversed weekly losses. The three major U.S. stock indexes initially fell on weaker-than-expected U.S. employment data, concerns about the pace of Fed rate cuts and the unwinding of yen “carry trades.” CNBC Pro sifted through FactSet to find companies in the S&P 500 that can be trusted in this volatile market. These stocks have experienced lower share price volatility over the past five years, and their total returns (including share price gains and dividends) have been higher than the S&P 500 Index over the past five years. They’ve also performed well in the short term and are attractively valued, as each stock has gained 5% or more over the past three months and have a lower forward price-to-earnings ratio than the broader market index, which is 21 or less. Take a look at the names below: Healthcare companies Amgen, UnitedHealth Group and AbbVie are among the companies that have seen lower volatility and strong returns in recent years. Pharmaceutical company AbbVie has gained about 262% over the past five years, making it the top gainer in the group. The stock price is up 22.6% this year and 18.7% in three months. Morgan Stanley Wealth Management recently added AbbVie to its U.S. model portfolio. In an Aug. 1 report, the company cited during a conference call that the company’s “near-term strong momentum in immunology has effectively more than offset the loss of Humira revenue, setting the stage for strong earnings per share in the medium term.” Ready for growth”. Global net revenue for Humira, which treats severe rheumatoid arthritis, Crohn’s disease and ulcerative colitis, fell 29.8% in the second quarter from the same quarter in 2023 as competition from cheaper biosimilars continued to weigh on sales. However, company management said some patients are turning to AbbVie’s immunotherapy drugs Skyrizi and Rinvoq. Amgen’s stock price has a five-year total return of 104%, making it a stable grower, but still the slowest on the list. Shares are up nearly 12% this year. The company on Tuesday tightened its full-year earnings forecast and reported lower-than-expected second-quarter profits, citing higher operating expenses, including costs related to developing its experimental obesity drug MariTide. Wells Fargo analyst Mohit Bansal downgraded Amgen stock to equal weight with a $335 price target, implying potential upside of just 3.2%, and said analysts have already weighed in on the company’s MariTide shares. success and the company’s outperformance over the past year. With a five-year price volatility of 6.2x and a gain of 152% over the past five years, T-Mobile is another stock that has delivered solid returns in the short term. The company’s shares are up more than 21% so far this year, significantly outpacing the broader market’s returns this year. According to its financial report released on July 31, the mobile network operator’s second-quarter revenue and profit exceeded expectations, and it raised its forecast for new customers for the full year. Analysts raised price targets on T-Mobile after report. Barclays analyst Kannan Venkateshwar raised his price target by $20 to $200, saying the company’s operating performance continues to outperform the market and its subscriber guidance is conservative. Other stocks with lower volatility and attractive valuations include auto replacement parts retailer AutoZone and insurance company Aflac. —CNBC’s Christopher Hayes contributed reporting.
