BofA reveals stocks with a history of steady returns amid market volatility

Trump tariffs have already hurt US stocks significantly in recent weeks but the Fed’s latest warning of stickier inflation and an economic slowdown ahead signals the worst may not be over just yet.

“With increasing uncertainty over the macro, stocks with a history of weathering prior downturns with low crowding risk and low earnings volatility may make sense,” according to Bank of America (BofA).

In its recent report, the investment firm named quality stocks that historically offer steadier returns amidst market downturns.

In particular, the BofA analysts recommend owning J&J and Clorox in 2025.

Clorox Co (NYSE: CLX)

Bank of America is bullish on Clorox stock amidst macro concerns that may continue to weigh on US stocks as it’s somewhat insulated from President Trump’s new trade policies.

Clorox does not rely heavily on international sales, which may help it remain resilient in the wake of higher tariffs.

“We see companies with more domestic exposure as better positioned vs. multi-national peers, which face greater pressure and volatility from a changing tariff and FX environment,” the investment firm told clients in a recent report.

BofA sees an upside in CLX shares to $172 which indicates a potential upside of more than 20% from here.

Plus, a healthy 3.37% dividend yield makes Clorox stock all the more exciting to own in 2025.

Last month, the cleaning products company reported better-than-expected revenue for its fiscal second quarter.

At the time, Clorox raised its guidance for the full year as well.

Its management now expects its adjusted per-share earnings to fall between $6.95 and $7.35. Its previous call was for up to $6.90 a share.  

Johnson & Johnson (NYSE: JNJ)

Bank of America is also positive on Johnson & Johnson amidst macro uncertainty and the ongoing market sell-off as it has a history of outperforming during challenging times.

The investment firm recommends owning JNJ shares to navigate market weakness as its focus on mergers and acquisitions (M&A) could help improve its market cap and topline growth in 2025.

Johnson & Johnson stock is a “buy” because the multinational is fully committed to resolving the talc litigation overhang as well.

“Better-than-expected launch of new products and pipeline success greater than we model” were among other reasons that BofA cited for its constructive view on JNJ.

Bank of America currently has a $171 price target on the NYSE-listed firm that indicates a potential upside of more than 10% from current levels.

Much like CLX, Johnson & Johnson is also a dividend stock that currently yields 3.03%, which makes it an exciting investment proposition for 2025.

Note that Bank of America is not the only firm that’s bullish on JNJ.

The consensus rating on Johnson & Johnson stock also currently sits at “overweight”.

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