With stock markets currently facing high volatility and uncertainty, selecting the right investments is key to protecting capital and achieving growth. That's why Bank of America comes up with recommendations on three stocks that can offer both stability and potential for growth.

At a time when markets are experiencing volatility, it is important to have stocks in your portfolio that can offer stability regardless of economic conditions. So let's take a look at why these stocks could be an interesting choice for investors 👇

Alliant Energy $LNT-1.6%: A safe investment in the energy sector

Alliant Energy…

LNT

$59.38 -$0.94 -1.57%

Capital Structure

Market Cap

15.5B

Enterpr. Val.

25.1B

Valuation

P/E

24.6

P/S

3.9

Open $60.11

Day range $59.95 - $60.55

52 week range $45.15 - $60.67

Alliant Energy, a utility company, appears to be a good choice for investors looking for security. With a low beta of 0.56, this stock is less susceptible to big market swings, which is a big advantage these days.

In addition, Alliant Energy boasts a strong dividend yield of 3.42%, which provides investors with not only inflation protection but also a steady income. With the S&P 500 down 10% from its one-year high, Alliant Energy is holding at 96% of its high, a testament to its resilience. Moreover, analysts at Wells Fargo predict a possible rise to $62 per share.

Procter & Gamble $PG-1.7%: A weaker dollar as a growth engine

Procter & Gamble

PG

$171.03 -$2.89 -1.66%

Capital Structure

Market Cap

408.7B

Enterpr. Val.

432.1B

Valuation

P/E

28.9

P/S

4.9

Open $175.05

Day range $172.57 - $175.90

52 week range $141.45 - $177.94

Procter & Gamble, the consumer goods giant, is another stock that Bank of America analysts recommend. The company, which is known for its global operations, can benefit from a weakening U.S. dollar, which boosts the value of its foreign earnings. Even as the S&P 500 loses value, Procter & Gamble is holding at 96% of its annual high, indicating its strength even in uncertain times.

Analysts expect Procter & Gamble to achieve earnings per share growth of 6.6% next year, and some even predict growth with a price target of $190 per share. Another positive factor is the 5.2% decline in short positions on the stock over the past month, suggesting that even those who were betting on a decline are changing their minds.

Costco $COST+0.8%: The Model That Always Wins

Costco

COST

$899.43 $6.91 +0.77%

Capital Structure

Market Cap

395.7B

Enterpr. Val.

394.4B

Valuation

P/E

55.3

P/S

1.6

Open $899.94

Day range $890.95 - $904.98

52 week range $540.23 - $923.83

Costco is known for its discounting model, which ensures steady performance even in uncertain economic times. Costco stock is holding at 91% of its yearly high and is poised to grow earnings per share by 10.5% next year. Deutsche Bank has set a target price of $927 per share.

While Costco offers a lower dividend yield compared to Alliant Energy, its strong growth and stability make this stock an attractive investment. Over the past year, Costco stock is up 63%, significantly outperforming the S&P 500, which is up 22%.

Disclaimer: There is a lot of inspiration to be found on Bulios, but stock selection and portfolio construction is up to you, so always conduct a thorough analysis of your own.

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