4 stocks that could beat the market

Amid a tough year for markets, "Fast Money" traders looked to what they deemed best-in-class stocks that could outperform ahead.

The S&P 500 has slid nearly 5 percent this year. The index, though, has started to stabilize in recent weeks, along with crude oil prices.

Traders touted some names that have ticked higher despite a down year for broader markets. Tobacco company Altria Group, for instance, has climbed more than 5 percent. The stock looks appealing because of its 3.6 percent dividend yield, argued trader Steve Grasso.

"I would think that in a good market or bad market you're still hunting for yield. You find it in Altria Group," Grasso said.

PayPal
Source: CNBC

Trader Dan Nathan, meanwhile, touted mobile payments company PayPal as an "interesting" play. It has climbed more than 3 percent this year. The stock trades at a similar valuation to credit-card companies Visa and MasterCard, despite stronger growth projections, Nathan said.

A smaller stock — Emerson Electric — could also have upside ahead, trader Guy Adami argued. Its shares are about 3 percent higher this year.

Trader David Seaburg, on the other hand, projected a recovery for struggling shares of Alexion Pharmaceuticals. He contended the sector has broadly taken a hit amid drug pricing concerns and broader selling, becoming "discounted."

Alexion shares have plunged 25 percent this year.

Disclosures:

Dan Nathan

Dan is long PFE buy-write, long TWTR, long UUP March calls, long GE May 28 puts, long JPM April puts, long XLP March put spread, long XRT March puts, long XLB March puts, long HD put butterfly, long QQQ puts, long INTC March/April put spread

David Seaburg

Opinions expressed by David Seaburg are solely his own and do not reflect the views and opinions of Cowen Group, Inc

Steve Grasso

Steve is Long AAPL, AEO, BA, BAC, CC, DD, DIS, DECK, EVGN, KBH, MJNA, MU, OLN, PFE, PHM, T, TWTR, GDX firm is long CXO, OXY, BP, CVX, RIG kids own EFA, EFG, EWJ, IJR, SPY

Guy Adami

Guy Adami is long CELG, EXAS, GDX, INTC, Guy Adami's wife, Linda Snow, works at Merck.