The past few weeks have been a rollercoaster for the stock market. After President Trump’s sweeping tariff announcement, investors watched major indexes nosedive, with the S&P 500 dipping into correction territory.
But the mood has shifted since. After hitting a low on April 8, the S&P has clawed back 10%, fueled by renewed hope for progress in U.S.-China trade talks.
Still, it’s not all smooth sailing from here. Analysts warn that the rebound, while promising, sits on shaky ground as trade tensions and policy uncertainty continue to cast a shadow.
In such an environment, investors may find opportunities by focusing on companies with strong fundamentals and resilient business models. Bank of America analysts are bringing attention to two names they have recently turned bullish on, believing they are poised to thrive in today’s unpredictable market.
We’ve used the TipRanks database to explore the rationale behind their bullish outlook.Let’s dive in.
Church & Dwight Company(CHD)
We’ll start with household goods, and a look at Church & Dwight, a company that can trace its roots back nearly 180 years. The company today is probably best recognized as the parent firm behind the Arm & Hammer brand of baking soda and related products, but it also owns such well-known names as OxiClean, Orajel, Waterpik, Nair, Pepsodent, and even Trojan condoms. The line-up of products, in the fabric care, health & well-being, home care, and personal care niches gives Church & Dwight a solid foundation – and a reputation as a defensive stock whose products are always in demand.
Those products are available internationally, giving Church & Dwight a wide footprint in Canada, the UK, France, Australia, and China. The company’s sales and distribution activities are conducted through three main divisions, Consumer Domestic, Consumer International, and Specialty Products, with the Specialty Products division including a strong business-to-business segment focused on product lines derived from sodium bicarbonate, or the baking soda behind the famous Arm & Hammer brand. The measure of the company’s success can be seen in its scale. CHD has a market cap over $24.5 billion and in 2024 saw revenues reach $6.1 billion.
When we look at the last reported quarter, 4Q24, we find that CHD’s results were sound across the board. The company’s revenue came to $1.58 billion, for a 3.3% year-over-year gain and beating the estimates by $20 million. Earnings, reported as a non-GAAP EPS, came to 77 cents; this was up 18.5% year-over-year and was in line with expectations.
For Bank of America’s Anna Lizzul, this stock presents a solid opportunity for investors. She notes several factors that back her thesis. In her words, “We see a compelling risk/reward setup due to: 1) improving volumes with consistent market share gains, 2) limited private label risk to the value portfolio, 3) potential for tuck-in M&A, and 4) a history of outperformance in economic downturns. We appreciate CHD’s 36% exposure to value products while continuing to elevate the premium portfolio through innovation.”
These comments back up Lizzul’s Buy rating on Church & Dwight’s stock, while her $125 price target suggests that the shares will gain 25% by this time next year. (To watch Lizzul’s track record, click here)
The Street’s consensus view on CHD is a Moderate Buy, based on 15 analyst recommendations that include 7 Buys, 6 Holds, and 2 Sells. The stock has a trading price of $100.21 and its $112.21 average target price implies a gain of 12% on the one-year horizon. (See CHD stock forecast)
Janus Henderson Group(JHG)
The next stock on our list is Janus Henderson Group, a global asset management company that uses disciplined investments to steer its clients toward successful and superior financial outcomes. The British-American company is based in the City of London, and has offices in multiple locations around the world, including such financial hubs as Boston, New York, Chicago, and LA in the US; Paris, Amsterdam, and Zurich in Europe; and Hong Kong, Singapore, and Sydney in the Asia-Pacific. The company employs over 2,000 people and ended 2024 with approximately $379 billion in total assets under management.
Janus Henderson’s AUM is worth a closer look. The year-end 2024 total was up 13% from year-end 2023, but more importantly, the company’s AUM has a record of outperformance. The company reports that, as of the end of last year, compared to relevant benchmarks, its AUM outperformed on a one-, three-, five-, and 10-year basis by 65%, 72%, 55%, and 73%, respectively.
A look at the financial results shows that Janus Henderson quality has been bringing profits in recent quarters. The company’s top line in 4Q24, the last period reported, came to $708.3 million, up 24.6% year-over-year and beating the forecast by over $30.7 million. At the bottom line, the $1.07 adj. EPS was up from 82 cents in the year-ago period, and was 12 cents per share better than had been expected. Janus Henderson had net inflows during the full-year 2024 of $2.4 billion, compared to the $(0.7) billion net outflows for 2023.
This asset manager’s high quality, and its ability to expand its inflows, caught the attention of BofA’s Craig Siegenthaler, an analyst ranked in the top 2% of Wall Street stock experts. “The percentage of JHG’s US AuM rated 5/4 stars by Morningstar has risen over the last 12 months and is 65%, well above peers at 40% (industry average at 32.5%)” the 5-star analyst writes. “JHG’s investment performance is broadly strong across its active equity and fixed income businesses. We think this places JHG in a strong position to win significant bond reallocations over the next three years as investors move out of cash and extend durations… We expect stronger fixed income flows to lift JHG’s 2025 organic growth to +2%. More importantly, unlike most peers, its management fee rate is stable and hasn’t declined with negative mix shift.”
Siegenthaler goes on to rate JHG as a Buy, and his $43 price target points toward a one-year upside potential of 30.5%. (To watch Siegenthaler’s track record, click here)
Overall, JHG shares hold a Moderate Buy consensus rating from the Street, based on 9 recent analyst reviews that include 4 to Buy and 5 to Hold. The stock is trading for $32.95 and its $43.33 average target price implies a gain for the coming year of 31.5%. (See JHG stock forecast)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
