Buying stocks with steady profits and a strong competitive edge could provide some protection against the current highly uncertain macro backdrop, according to UBS. Uncertainty around the Trump administration’s new tariff policies have increased volatility in recent weeks. Stocks have seesawed back and forth above the flatline to begin the month, but all three major averages were pacing for a weekly decline as of Thursday afternoon. Against this backdrop of heightened trepidation and unpredictability, UBS screened for potential safe haven opportunities post the most recent market selloff. “This screen is designed to identify firms with strong competitive advantages and consistent levels of profitability that exhibit low volatility,” the firm wrote in a Thursday note. Some of the stocks UBS identified are listed below: UBS highlighted McDonald ‘s as a potential safe haven opportunity. The fast-food stock has risen 6% in the past 12 months. “MCD’s CFROI [cash flow return on investment] profile has been very stable over the past 15 years staying near 10% and it hit an all-time high of 13.4% in 2024. CFROI is forecast to remain near current levels over the next two years and the market is pricing for this stability to continue,” UBS wrote. “MCD’s Economic Profit has been on an increasing trend over the past two decades highlighting the firm’s ability to drive wealth creation.” Most analysts covering the stock are currently bullish on its trajectory, while its average price target points to a 7% upside. Philip Morris International was another name on the list. The cigarette producer has soared almost 69% in the past year, rising 28% in 2025 alone. Last month, shares rose 11% in a single day after the Marlboro owner reported better-than-expected results for the fourth quarter, boosted by sales of smoke-free products such as Zyn nicotine pouches. In January, the Food and Drug Administration cleared Zyn to remain on the market, saying it is safer than smoking traditional cigarettes. Analysts are generally bullish on Philip Morris, although the average price target corresponds to a potential downside of 3%. Life sciences stock Thermo Fisher Scientific has slipped 10% in the last 12 months, but has managed to eke out a 1% gain so far this year. Last month, Bernstein upgraded the stock to an outperform rating from market perform. “We continue to believe Thermo will be the industry’s long-term winner because it is best-positioned to address major industry changes; commercial execution (especially ability to cross-sell) is the most under-appreciated reason why,” wrote analyst Eve Burstein. “Although there are many reasons to like Thermo (its innovation; its M & A ability; its strong leadership team…), our favorite is their unique commercial advantage.” Burstein’s $630 price target is approximately 19% higher than where shares of Thermo Fisher closed on Thursday. The average price target sees shares rallying even further, around 26%. Most analysts covering Thermo Fisher currently hold a bullish view of the stock.
Safe haven stocks with competitive advantages to ride out the market volatility, according to UBS
