In this article, we discuss 5 best bear market stocks to buy according to Morgan Stanley. If you want to read our detailed analysis of the current market situation, go directly to read 10 Best Bear Market Stocks to Buy According to Morgan Stanley.
5. Anthem, Inc. (NYSE:ANTM)
Number of Hedge Fund Holders: 69
Anthem, Inc. (NYSE:ANTM) is a global health insurance plan provider. On April 8, the stock hit its all-time high, reaching $520 per share. Keeping its stable performance intact, ANTM delivered a 7.29% return to shareholders in 2022 so far, while its one-year return came in at 27.2%, as of the market close of June 8.
At the end of March 2022, 69 hedge funds tracked by Insider Monkey were bullish on Anthem, Inc. (NYSE:ANTM), owning stakes worth over $5.7 billion. In the previous quarter, 63 hedge funds owned a $5.6 billion worth of stakes in the Indiana-based company.
Anthem, Inc. (NYSE:ANTM) has been raising its dividends consecutively for the last 11 years. The company currently pays a quarterly dividend of $1.28 per share, which grew from $0.80 per share in 2018. As of the close of June 8, the stock offered a yield of 1.03%.
In the first quarter of 2022, Anthem, Inc. (NYSE:ANTM) reported an 18% year-over-year growth in its operating revenue to $37.9 billion. The company’s medical enrolment also increased by over 3.3 million members, taking the total to 46.8 million members. Given the company’s growth in its core businesses, Morgan Stanley lifted its price target on Anthem, Inc. (NYSE:ANTM) to $607, including it in its list of one of the best bear market stocks. In May, Bernstein also lifted its price target on the stock to $596, with an Outperform rating on the shares.
ClearBridge Investments mentioned Anthem, Inc. (NYSE:ANTM) in its Q4 2021 investor letter. Here is what the firm has to say:
“The quarter also saw strong showings from Anthem; has been operating well and is a key player in the evolution of health care insurance and delivery, providing more integrated and cost-effective solutions and receiving a tailwind from an aging population. The company tends to be volatile based on changes in medical loss ratios (MLR), though we view this volatility as a short term for business models that are able to reprice policies relatively quickly. We added significantly to the position during the year.”
4. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 72
Consumer staples stocks fare well during recessionary periods as customers rely on their products for everyday use. The Procter & Gamble Company (NYSE:PG) is one such name that gained nearly 51% between March 2009 and December 2011, the period of high recession. Moreover, the company is a dividend champion, raising its dividends consistently for the past 66 years, with a dividend yield of 2.51%, as of June 8’s close.
In its fiscal Q3 2022 report, The Procter & Gamble Company (NYSE:PG) posted an EPS of $1.33, beating estimates by $0.04. The company’s revenue also exceeded analysts’ consensus by $710 million at $19.4 billion. For FY22, the company expects its organic sales growth in the range of 6% to 7%, with earnings per share growth to fall between 3% to 6%, versus the consensus of 3.5%.
According to Insider Monkey’s Q1 data, The Procter & Gamble Company (NYSE:PG) was a part of 72 hedge fund portfolios, compared with 67 funds a quarter earlier. These hedge funds hold a collective stake of over $6 billion in the company. Rajiv Jain’s GQG Partner was the company’s leading shareholder in Q1, with stakes worth over $1.5 billion.
In June, Deutsche Bank set a $171 price target on The Procter & Gamble Company (NYSE:PG), with a Buy rating on the shares, highlighting the company’s strong performance in the first half of 2022. Morgan Stanley added the company to its list of best bear market stocks, setting a $177 price target on PG.
3. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 78
Comcast Corporation (NASDAQ:CMCSA) is a Philadelphia-based communications company that also specializes in wireless services and markets televisions, internet, and telephones for its customers.
For the quarter ending March 31, Comcast Corporation (NASDAQ:CMCSA) posted an EPS of $0.86, exceeding analysts’ estimates by $0.05. The company also showed growth in its other segments as well, reporting net additions of 194,000 and 262,000 in its cable and broadband customers, respectively. Moreover, its revenue for the quarter showcased a 14% year-over-year growth at $31.01 billion.
Comcast Corporation (NASDAQ:CMCSA) has been paying regular dividends to shareholders for the past 14 years. Currently, the company offers a quarterly payout of $0.27 per share, with a 2.51% yield, as of the close of June 8. In view of its dividend growth, Comcast Corporation (NASDAQ:CMCSA) was added by Goldman Sachs to its list of top dividend picks in May.
Morgan Stanley lifted its price target on Comcast Corporation (NASDAQ:CMCSA) to $55, picking the communications company as one of the best bear market stocks. In addition to this, Benchmark also set a $60 price target on CMCSA in June, with a Buy rating on the shares.
At the end of March 2022, the number of hedge funds tracked by Insider Monkey owning stakes in Comcast Corporation (NASDAQ:CMCSA) stood at 78, declining slightly from 80 in the previous quarter. The collective value of these stakes is over $7 billion. With stakes worth over $1.4 billion, First Eagle Investment Management was the company’s leading shareholder in Q1 2022.
ClearBridge Investments mentioned Comcast Corporation (NASDAQ:CMCSA) in its Q4 2021 investor letter. Here is what the firm has to say:
“Weakness among our holdings in the communication services sector was the other detractor to performance. Comcast was hurt by tepid subscriber growth in its broadband business but demonstrated strong growth in free cash flow, positioning the company for accelerated capital return going forward.”
2. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 83
Exxon Mobil Corporation (NYSE:XOM) was the only stock from the energy sector added by Morgan Stanley to its list of best bear market stocks. The firm lifted its price target on the stock to $105. Since the beginning of the year, XOM gained 64.6%, while the stock delivered a 68.3% return to shareholders in the past year.
In Q1 2022, Exxon Mobil Corporation (NYSE:XOM) reported revenue of $90.5 billion, surpassing estimates by $6.93 billion. However, its earnings per share of $2.07 missed consensus by $0.16.
Of the 900+ elite funds tracked by Insider Monkey, 83 funds presented a bullish stance on Exxon Mobil Corporation (NYSE:XOM) in Q1 2022, compared with 71 a quarter earlier. The consolidated value of these stakes is over $8.5 billion. Rajiv Jain, Ken Griffin, and Jim Simons are some of the major stakeholders of the company at the end of March 2022.
Exxon Mobil Corporation (NYSE:XOM) is a Dividend Aristocrat, raising its payouts consistently for the past 39 years. It currently offers a quarterly dividend of $0.88 per share, with a dividend yield of 3.36%, recorded on June 8. In June, Evercore ISI lifted its price target on Exxon Mobil Corporation (NYSE:XOM) to $120, with an Outperform rating on the shares.
Saturna Capital mentioned Exxon Mobil Corporation (NYSE:XOM) in its Q4 2021 investor letter. Here is what the firm has to say:
“Few companies maintain their position at the top for more than a decade or two. One that did was Exxon, which appeared decennially from 1980 through 2010. In 2019 it was ranked 10th, but as of writing has dropped to 39th place.”
1. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 136
An American financial services company, Mastercard Incorporated (NYSE:MA) has evolved its business over the years. The company adopted blockchain technology and added digital payments to expand its payment-focused services. MA has gained 5.80% in the past six months, as of the market close of June 8.
Mastercard Incorporated (NYSE:MA) was the 10th most famous stock among hedge funds at the end of March 2022, as 136 funds in Insider Monkey’s database held stakes in the company, compared with 144 in the previous quarter. These stakes hold a consolidated value of over $15.4 billion.
From the information technology sector, Morgan Stanley included Mastercard Incorporated (NYSE:MA) in its list of best bear market stocks, setting a $452 price target on the stock. In May, Goldman Sachs also initiated its coverage of the stock with a $460 price target and a Buy rating on the shares, appreciating the company’s Q1 earnings beat.
Mastercard Incorporated (NYSE:MA) maintains an 11-year track record of consistent dividend growth, with its 5-year dividend CAGR standing at 20%. The company pays a quarterly dividend of $0.49 per share, offering a dividend yield of 0.54%, as recorded on June 8.
Saturna Capital mentioned Mastercard Incorporated (NYSE:MA) in its Q4 2021 investor letter. Here is what the firm has to say:
“Given the likelihood of rising inflation and interest rates ahead, we anticipate adjustments to the portfolio to reduce exposure to highly valued stocks dependent on low interest rates to support terminal year valuations, while seeking investments in companies more correlated with a return to economic normalcy. We sold our position in Mastercard. Although Mastercard does not charge or collect interest, its association with credit activities was problematic.”
You can also take a look at 12 Best Bear Market Stocks to Buy Now and 10 Best Financial Stocks that Pay Dividends
