Top Wall Street analysts name the best stocks to ride a market downcycle

With an disfigured September successful the rear-view mirror, it's tempting for investors to marque impulsive decisions.

The 3 large indexes ended the period with sizeable losses, rocked by spiking enslaved yields and a Federal Reserve that volition bash immoderate it takes to bring down inflation.

As frightening arsenic these times whitethorn be, it's cardinal for investors to instrumentality a semipermanent position and look intimately for stocks that person imaginable beyond these tumultuous times.

Here are 5 stocks picked by Wall Street's apical professionals, according to TipRanks, a level that ranks analysts based connected their way record.

Pure-play declaration logistics supplier GXO Logistics (GXO) focuses connected leveraging exertion to negociate proviso chains and warehousing. This steadfast addresses a highly underserved country of e-commerce: reverse logistics, oregon the question of goods from customers backmost to sellers. In the 2nd quarter, 40% of the company's caller concern wins came from reverse logistics.

Since it debuted successful the nationalist markets successful 2021 — a spin-off from XPO Logistics — GXO has managed to adjacent a billion-dollar woody to get reverse logistics person Clipper Logistics. This acquisition besides solidified GXO's stronghold successful the reverse-logistics market. (See GXO Logistics Risk Factors connected TipRanks)

However, macroeconomic headwinds from Europe and the U.K. are weighing connected the company's financials. After pricing successful the headwinds that are expected to stay an overhang for immoderate much time, Cowen expert Jason Seidl precocious reduced his near-term terms people connected GXO to $62 from $67.

Seidl noted that astir 70% of GXO's income are successful overseas currencies, chiefly successful pounds and euros. Sustained currency headwinds from Europe owed to the Russia-Ukraine warfare had led GXO to usher a $30 cardinal interaction connected revenues successful 2023. However, the sliding lb has led the expert to expect further impact.

Nonetheless, the expert remains steadfast connected his bargain rating, saying that GXO's adaptable outgo operation is susceptible of mitigating adverse borderline impacts. For those who tin tummy the near-term worries, Seidl recommends buying the stock. "Given wherever GXO is trading, we spot an charismatic introduction constituent for semipermanent investors who are looking for prime transportation/logistics vulnerability that tin upwind the systematic tempest successful Europe," said the analyst, who has been ranked No. 8 among astir 8,000 analysts tracked connected the platform. 

Importantly, 67% of Seidl's ratings person been profitable, with each standing generating returns of 23.9% connected average. 

Nova (NVMI) provides immoderate heavy-duty metrology solutions to the semiconductor manufacturing market. The company's balanced gross premix betwixt foundry and representation has helped it hedge its concern against vulnerability to a azygous extremity market.

Recently, Needham expert Quinn Bolton weighed successful connected Nova, reiterating a bargain standing and $120 terms people connected the company. "We similar Nova for its beardown foothold successful the foundry and representation markets and its accordant absorption connected processing caller technologies to conscionable the request for metrology successful semiconductor manufacturing," said the analyst. (See Nova Measuring Stock Chart connected TipRanks)

Unlike galore different types of process power equipment, optical captious magnitude solutions bash not look the hazard of diminishing request with increasing wafer capacity. In fact, they standard linearly with it. Now, Nova has astir a 70% stock successful the OCD market, which gives it a beardown runway for maturation arsenic wafer capacities grow with the proliferation of precocious technologies.

Bolton is besides upbeat astir Nova's prospects successful the X-ray exertion market. The expert expects the X-ray tech marketplace to "grow successful some front-end metrology and successful precocious packaging applications."

"We judge Nova volition beryllium a metrology supplier of prime for the foreseeable future, and judge Nova volition easy scope the $1 cardinal people adjacent with highly blimpish assumptions," said Bolton.

Bolton is ranked astatine No.3 of astir 8,000 analysts connected TipRanks' database. Notably, 62% of his ratings person successfully returned an mean of 38% per rating.

IT concern process services supplier TD SYNNEX (SNX) is benefiting from the precocious request for distant moving and learning software, arsenic good arsenic hardware solutions. Moreover, accelerated integer translation has kept the IT spending situation favorable for the business.

The institution precocious released its quarterly results, beating the apical and the bottommost lines. However, similar its different tech peers, economical headwinds are not sparing TD SYNNEX. Barrington Research expert Vincent Colicchio reduced his terms people to $98 from $106 to bespeak the headwinds impacting the concern successful the coming fewer months.

Nonetheless, Colicchio believes that the combined powers of SYNNEX and Tech Data (with which it merged past year) volition assistance the institution recognize coagulated gross and outgo synergies. This volition assistance net maturation implicit the adjacent fewer years. (See TD Synexx Corporation Blogger Opinions & Sentiment connected TipRanks)

"The company's gross should turn faster than wide IT spending arsenic it increases its concern successful fast-growing technologies. We are assured successful management's quality to execute oregon transcend its targeted outgo synergies of $200 cardinal fixed a coagulated way grounds of execution connected acquisitions," weighed successful Colicchio.

The expert reiterated his bargain standing connected the stock, saying that the shares are trading astatine an charismatic discount.

Colicchio has placed astatine No. 581 among the astir 8,000 analysts followed connected TipRanks. The expert has a occurrence complaint of 52%, and each of his ratings has garnered mean returns of 8.5%.

As the tech assemblage grapples with aggregate economical blows, Alphabet (GOOGL) has been moving connected caller devices to motorboat astatine its upcoming "Made by Google" event. (See Alphabet Class A Stock Investors sentiments connected TipRanks)

Ahead of the releases, Monness Crespi Hardt expert Brian White, who is simply a Google bull, maintained his bargain standing connected the stock. "We judge Alphabet is good positioned to capitalize connected the semipermanent integer advertisement trend, enactment successful the displacement of workloads to the cloud, and payment from integer transformation," said White, justifying his semipermanent bullish presumption connected Alphabet.

Additionally, Alphabet's beardown capabilities successful AI springiness the institution the precocious manus to heighten the experiences of consumers. Also, White is encouraged by the information that successful the 2nd 4th of the year, Apple held lone 15.6% of planetary smartphone shipments. This means Android has the higher stock successful the operating strategy market.

White, who holds the 470^th presumption among astir 8,000 analysts rated connected TipRanks, maintained his people terms of $145 connected GOOGL stock. The expert has a 56% occurrence complaint and 9.6% mean returns connected each of his ratings.

Energy institution Edison International (EIX) has been winning its ain battles amid the increasing macroeconomic headwinds roiling each sector. The institution has been skillfully addressing the caller vigor waves crossed the United States.

Also, RBC Capital expert Shelby Tucker is assured that the energy depletion load, which is apt to stay level till 2030, is expected to turn aft that. Management forecasts astir 60% summation successful load betwixt 2030 and 2045, arsenic request for electrification grows. (See Edison International Dividend Date & History connected TipRanks)

"Higher depletion from electrification volition apt beryllium offset by distributed generation, batteries, and energy-efficiency measures," said Tucker, earlier adding that Edison has much opportunities connected the retention broadside than connected the procreation side.

Moreover, subsidiary Southern California Edison's wildfire mitigation program has reduced the genitor company's wildfire hazard by 65% to 70%, which is simply a boon for Edison. "We proceed to judge that EIX is undervalued comparative to the assemblage contempt a fig of steps taken by the utility, and by California, to code wildfire challenges to the system," said Tucker, underscoring the charismatic accidental for investors to scoop up EIX shares.

Importantly, Edison's solutions illustration is electric-only, which makes it an "attractive pure-play enactment for investing successful the electrification of society." 

Tucker reiterated a bargain standing connected the banal with a terms people of $82.

The analyst, who stands astatine No. 140 retired of the astir 8,000 analysts tracked connected TipRanks, has been palmy successful his ratings 67% of time. Moreover, each of his ratings has generated an mean instrumentality of 9.8%.