Last year was one of the worst for stock markets in more than a decade. The three major U.S. indexes — the S & P 500 , the Dow Jones Industrial Average and the Nasdaq Composite — all clocked their worst year since 2008 . The MSCI World Index fared no better, also ending the year with its worst performance since 2008. As market pros warn investors of bumpy times ahead , CNBC Pro used FactSet data to screen for low-volatility stocks that not only beat the market in 2022 but are expected to rise further this year. The following MSCI World stocks ended last year in the black, are buy-rated by the majority of analysts covering them, and have average potential upside of at least 20% over the next 12 months. They also are less volatile than the index, with a 3-year historical beta of less than 1. “Beta” is a measurement of a stock’s volatility ; a beta of 1 means that a stock’s volatility is equal to the market, whereas a beta below 1 means that stock is less volatile than the market. Telecommunications U.S. telecom giant T-Mobile turned up on the screen. The company grew its market cap by more than 20% last year, but analysts covering the stock think it could still rise a further 27%. Its largest shareholder Deutsche Telekom made the list too, with the company given average upside of 34.5%. Telecom stocks are typically seen as a relatively defensive play, with their dividends a key reason for their popularity among income-seeking investors. Utilities The sector is traditionally seen as a safe haven during periods of market upheaval, given its steady, regulated earnings, inflation-based contract clauses and higher dividend income relative to other sectors. The sector ended the year down 3.6%, making it the second-best performer among the 11 major sectors on the index. It also enjoys the second-highest dividend yield, according to FactSet data. Germany’s RWE and Enel Chile were among the utility names that made CNBC’s screen, with a historical beta of 0.8 and 0.2 respectively. Shares of RWE returned 16.4% in 2022, but analysts expect further upside of 25.8%. Enel Chile had a standout year, with the stock returning 30.8% in 2022, but analysts think it can still rise a further 43%. Gaming Video game giant Activision Blizzard is another well-known name on the list. The stock gained 15% last year, but analysts give it upside of a further 20%. It has a historical beta of 0.3. The company is the subject of a proposed $68.7 billion acquisition by Microsoft , but the deal could be in jeopardy, with the U.S. Federal Trade Commission seeking to block it on anti-competition grounds. Nintendo also made the list. Microsoft announced in December that it had entered into a 10-year commitment to bring popular video game franchise Call of Duty to Nintendo once the acquisition of Activision Blizzard had been completed, following a similar commitment to bring the game to Sony ‘s Xbox. The moves are widely seen as an attempt by Microsoft to assuage regulators’ and competitors’ concerns over the Activision deal. Fertilizer Stocks Fertilizer stocks Nutrien and Corteva made the screen too. Shares in Nutrien were up just 4% last year, having fallen significantly from April’s 52-week high of 147.93 Canadian dollars ($109.34). Some 54% of analysts covering the stock still rate it a buy, however, with consensus estimates give the stock average upside of 38.6%
