Stocks to buy during volatility times


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The deep research logic is organized as follows:
Okay, let's tackle this question about which stocks to buy during volatile times. The user is focused on the US Tech sector, especially AI, MAG7, Wearables, and the Metaverse. They also care about GICS sectors, trading volume, P/E ratios, and pre-market changes. Plus, they've been looking at NVDA, GOOGL, and BABA a lot.
First, I need to consider the references provided. The user mentioned volatility, so defensive sectors like Utilities and Consumer Staples are likely candidates. Reference 1 talks about utility stocks with upside potential, and Reference 6 lists Nextera Energy (NEE) as a top pick. That's a utility stock with a market cap over $10B, a dividend yield over 3%, and a low beta. It fits the user's criteria for stability.
Reference 5 from Goldman Sachs suggests buying US sales-insensitive stocks, which include tech companies like Alphabet (GOOGL) and Visa (V). Since the user is into tech, especially AI, these could be relevant. However, the user's strategy includes P/E ratios, and GOOGL's P/E isn't specified here, but it's a high-growth tech company, so that's a plus.
The user also inquired about the impact of tariffs. References 7, 10, and 14 mention low-beta defensive stocks in healthcare and consumer staples. For example, Reference 10 lists Cardinal Health (CAH) and Molson Coors (TAP) as low-beta stocks. These could be good options for stability during tariff-induced volatility.
Looking at the user's history, they clicked on NVDA, GOOGL, and BABA frequently. NVDA is mentioned in Reference 30 as part of renewable energy, but it's also a tech stock. However, the user's current question is about volatility, so maybe tech isn't the best fit here. But Reference 5 does suggest second-derivative AI stocks like software services, which might be less volatile than hardware. Reference 31 lists companies like Marvell and AMD as second-derivative AI stocks with reduced volatility. The user's previous interest in AMD's valuation (average target $188.44) could make this relevant.
The user also asked about the Greensill collapse and Japanese debt. While not directly related, it shows they're interested in systemic risks, so stable, dividend-paying stocks would mitigate that.
Putting this together, the answer should balance defensive sectors (Utilities, Consumer Staples, Healthcare) with the user's tech focus. Highlighting Goldman Sachs' recommended tech stocks (like GOOGL) as part of a diversified approach makes sense. Also, including high-dividend, low-beta stocks from References 6, 10, and 14 would address volatility directly.
Need to structure the answer with clear sections: Conclusion upfront, then sectors, specific stocks, and a takeaway. Use the references to back each point, ensuring citations are correct. Also, include the visualizations for the queries mentioned in the references, like the utility stock query (Reference 6) and the defensive stocks query (Reference 11, which had 0 results, so maybe not needed).
Make sure to tie in the user's profile by mentioning tech stocks like GOOGL and NVDA where appropriate, but emphasize that during volatility, defensive sectors are safer. Also, note the P/E ratios and beta values from the references to align with the user's strategy.
Conclusion: In volatile markets, investors should prioritize defensive sectors with stable cash flows, low beta stocks, and high-quality tech companies insulated from macroeconomic shocks. Below is a tailored analysis combining defensive strategies with your focus on U.S. Tech/AI and quantitative metrics.
1. Defensive Sector Leaders: Utilities & Consumer Staples
- Utilities:
- Nextera Energy (NEE): A top quantitative pick with a 3.21% dividend yield, $135B market cap, and beta of 0.99 (below the market). It trades at a P/E of 19.45, offering exposure to renewable energy growth while mitigating volatility 1.
- Duke Energy (DUK): A leader in clean energy infrastructure, benefiting from U.S. policy tailwinds and stable regulated earnings. It rose 13% in Q1 2025, outperforming the S&P 500 23.
sector is utilities; market capitalization > $10 billion; dividend yield > 3%; beta < 1; p/e ratio < 20; top 10 sorted by quantitative recommendation score(1)
Last Price($) | Last Change% | GICS Sector | Market Cap($)2025.04.16 | Dividend Yield (TTM)%2025.04.16 | beta2025.04.16 | P/E(TTM)2025.04.16 | Quantitative Recommendation Score |
---|---|---|---|---|---|---|---|
65.64 | -2.99% | Utilities | 135.13B | 3.21 | 0.99 | 19.45 | 0.52 |
Ticker |
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NEENextera |
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- Consumer Staples:
- Procter & Gamble (PG) and Coca-Cola (KO): These companies are part of the Consumer Staples Select Sector SPDR Fund (XLP), which outperformed the S&P 500 in 2025 (-8% vs. +4%) due to their "non-cyclical" demand profiles 45.
- Farmer Brothers (FARM): A low-beta (descending channel) stock in the sector, trading at $1.66 with a 0.91% daily change 6.
2. Tech/AI Stocks with Reduced Volatility Exposure
-
Goldman Sachs’ "US Sales-Insensitive" Tech Picks:
- Alphabet (GOOGL) and Visa (V): These companies derive >90% of revenue domestically, reducing tariff risks. GOOGL’s AI infrastructure (e.g., Google Cloud) and V’s payment network are "second-derivative" plays on tech adoption, with lower volatility than hardware-focused peers 78.
- Marvell Technology (MRVL): A semiconductor leader in AI data centers, with a weekly volatility of 9.24 (below NVDA’s 12.3% in 2024) 8.
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AI Infrastructure Leaders:
3. Quantitative Screening: Low Beta + High Dividend Yield
-
Healthcare:
- Cardinal Health (CAH): A low-beta (0.99) healthcare logistics company, up 6.71% weekly in 2025, with exposure to defensive drug distribution 8.
- Gilead Sciences (GILD): A Zacks #1 Rank stock with a beta of 0.85 and a focus on stable HIV/AIDS drug demand 11.
-
Energy:
- NRG Energy (NRG): A utility transitioning to AI-powered grid modernization, up 22% YTD, with a P/E of 15.6 and a 3.4% dividend yield 12.
4. Key Takeaways for Your Strategy
- Sector Focus: Prioritize Utilities (NEE, DUK) and Tech/AI Infrastructure (GOOGL, MRVL) for balance between stability and growth.
- Quant Metrics: Screen for beta < 1, P/E < 20, and dividend yield > 3% to align with your risk tolerance.
- Tech Exposure: Use GOOGL and AVGO as "second-derivative" AI plays with reduced volatility compared to NVDA/BABA.
Final Assessment: Volatility favors defensive sectors and high-quality tech companies with insulated revenue models. Combine NEE/PG for stability and GOOGL/MRVL for AI-driven growth, while monitoring pre-market moves in NVDA (which you’ve tracked heavily). This mix balances your tech focus with the quantitative rigor you prioritize.
Source:
1.
Sector is Utilities; Market Capitalization > $10 billion; Dividend Yield > 3%; Beta < 1; P/E Ratio < 20; Top 10 Sorted by Quantitative Recommendation Score
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