Markets have had a rocky March so far, as inflation fears returned and the collapse of Silicon Valley Bank sent investors into a risk-off mode. Stocks slid, with the Dow Jones Industrial Average posting its fifth straight day of declines on Monday, while the 2-year Treasury yield tumbled . The Cboe Volatility index (VIX) , meanwhile, Wall Street's preferred fear gauge, reached a level not seen since late 2022 Monday, and neared territory considered highly risky. It has led some strategists — including Morgan Stanley's Mike Wilson — to declare that the next leg of the bear market has begun. Against this backdrop, CNBC Pro used FactSet to screen for stocks on the MSCI World index and S & P 500 that look well positioned to withstand the volatility and are expected to do well looking ahead. The screen criteria were: Low volatility levels, or a beta less than 1.0; Expected earnings growth higher than 10% in 2023; Average upside to price target of at least 10%; A buy rating from at least 40% of analysts covering the stock. The screen threw up a mix of health care, consumer, utility and even some financial stocks. Canadian financial services firm Fairfax Financial Holdings and Japanese natural gas provider Tokyo Gas got among the highest expected earnings growth for this year – at more than 150% each. British bank HSBC also made it to the list, with nearly 50% expected earnings growth and 23% average upside. HSBC is notable as it acquired the U.K. subsidiary of Silicon Valley Bank this week , sending its shares lower. Around 46% of analysts covering the stock give it a buy rating, according to FactSet. Italian luxury sports car maker Ferrari made the screen, with 21% expected earnings growth and around 20% upside. Morgan Stanley recently made Ferrari its firm-wide top pick, replacing Tesla. Analyst Adam Jonas increased Ferrari's price target by $30 to $310, implying the stock could rally 28% over the next year. A slew of pharmaceutical or healthcare, as well as consumer stocks, also showed up on the CNBC Pro screen. These include Danish pharmaceutical firm Novo Nordisk , U.S. firm UnitedHealth , and U.S. chocolate maker Hershey . Singapore's infrastructure conglomerate Keppel stood out for having among the highest potential upside at more than 50%.
