Economic data in the United States has not been too encouraging lately, especially on the consumer side, which is half of the equation nowadays. With significant pullbacks showing themselves in reports like consumer spending, retail sales, and consumer confidence to start the month of March 2025, investors have started to withdraw from certain areas of the market.
A connection can be made in consumer discretionary stocks, specifically how institutions have targeted such stocks in their selling sprees recently. This could mean that there is a sort of lost confidence in the industry's future potential. However, the selling is happening in cyclical products and services, and investors often forget that other noncyclical ones have a fundamental advantage in times like these.
This is why considering companies like T-Mobile US Inc. (NASDAQ: TMUS), Duke Energy Co. (NYSE: DUK), and even Waste Management Inc. (NYSE: WM) could be a great place to be in the coming quarters, especially as volatility spikes throughout the S&P 500 as a result of the bearish data that has just come out of the consumer side. While consumers may be pulling back from some cyclical areas, these stocks prove they have what it takes to keep on going higher.
Why T-Mobile Stock Stands Strong Amid Economic Uncertainty
While other discretionary items, like automobiles and travel, might be the first to suffer from spending pullbacks, people will likely always have room in their budgets for items like phone bills and groceries. This is why T-Mobile stock comes into play for today’s list, offering predictability, stability, and potential upside.
[content-module:MarketRank|NASDAQ:TMUS]If price action is any indication of what the market feels about a stock, then investors can somewhat assume that the market is turning bullish on T-Mobile stock today. It now trades at 93% of its 52-week high, showing enough bullish momentum to justify the optimism in the underlying fundamentals.
From this momentum, investors can also see that bears decided to pull back on their views as T-Mobile starts to become one of the few names that attract more capital during volatile periods such as today. Over the past month, up to 8.3% of T-Mobile’s short interest has been pulled back as a sign of bearish capitulation.
At the same time, institutional buyers stepped in to replace some of these running bears. Those from UBS Asset Management boosted their holdings in T-Mobile stock by as much as 12.3% as of February 2025, bringing their net position to a high of $856.7 million today and another bullish pillar for investors to lean on.
Why Wall Street Sees Duke Energy as a Reliable Defensive Stock
From the utility corner of the noncyclical market comes Duke Energy stock, which is also trading at a 52-week high to show investors just how stable and safe this stock can be, even during a highly volatile week for the S&P 500 and its 10% sell-off from recent highs.
[content-module:MarketRank|NYSE:DUK]As the stock demonstrated its ability to hold its ground during market volatility, some institutions became interested in seeking safety during market uncertainty inside of Duke Energy stock. Investors can see this live through the 4.4% boost in holdings coming from the Royal Bank of Canada as of February 2025.
This new allocation got the bank to hold a stake of as much as $916 million worth of Duke Energy stock and another vote of bullish confidence for investors to consider moving forward. More than just price action stability and momentum, there are other added benefits that come from investing in such a safe company.
Through this very stability and predictability in the financials, Duke Energy is able to pay out as much as $4.18 per share to shareholders via dividends, which at today’s prices translate to an annualized dividend yield of up to 3.5%, which not only beats any inflation expectations coming out of the United States economy, but also provides investors with a nice cushion to volatility.
Why Waste Management Offers Stability in a Volatile Market
As of February 2025, some Wall Street analysts decided to come in and reiterate their bullish sentiment for Waste Management stock, such as those from Citigroup with their Buy rating and $255 per share valuation. This view calls for a 13% upside from where the stock trades today.
[content-module:MarketRank|NYSE:WM]While not the most exciting upside setup on today’s list, it might be the safest, as this business will keep on churning out cash flows as long as the United States keeps on waking up every day.
Knowing that this business won’t be affected by any S&P 500 volatility, bearish traders decided the juice wasn’t worth the squeeze.
Over the past month, up to 6.7% of Waste Management’s short interest declined, showing investors a clear sign of bearish capitulation in the face of this stock coming into high demand during market pullbacks.
This is another reason for investors to consider it when consumers draw back on spending habits during this cycle.
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