Here's Bank of America's batten-down-the-hatches portfolio for an economic downturn

Published Thu, Mar 12 20202:08 PM EDT

(This story is for CNBC Pro subscribers only.) While coronavirus fears wreak havoc on the markets, these high quality stocks are the safest to own in a downturn, according to Bank of America. Stocks have experienced a devastating rout in recent weeks as a spike in coronavirus cases in the U.S. and an oil price war has spurred investor fear about a halt to economic growth. The three major averages are in a bear market, meaning they are down more than 20% from their recent highs. This marked the end of the longest stock market expansion in U.S. history. The Dow is down 1,800 points on Thursday and the S & P 500 is off by 6.2% and the Nasdaq is down 6%. Stocks got a little relief after the Federal Reserve announced more than $1 trillion in funding actions to ease strained capital markets. If stocks continue their sell-off, Bank of America created a list of stocks for clients that are the best to own in a economic downturn. "High Quality, Large Cap, and Low Risk factors tend to outperform during the 'Downturn' phase of the cycle," Bank of America equity and quant strategist Savita Subramanian said in a note to clients. The firm screened for large-cap S & P 500 companies with a high quality rating and low beta. Here's some stocks on the list. Costco , Johnson & Johnson , Coca-Cola , and Procter & Gamble all make Bank of America's defensive list. The theory behind defensive stocks is that even in harder economic times, people will still pay for consumer goods they provide, like food and household items. Consumer Staple Costco is a classic defensive stock, less tied to the economic cycle. Costco is only down 1% this year, while the S & P 500 has lost about 20%. The big box retailer is also probably benefiting from people stocking up on supplies in the wake of the coronavirus pandemic. In addition to being defensive names, the stocks are also low volatility with a beta less than 1. Coca-Cola, has a beta of 0.63, meaning on a day the S & P 500 drops 1%, the soda company would only drop 0.63%. Coca-Cola is also a high quality stock, estimating organic revenue will grow by 5% and adjusted earnings per share will increase by 7% in 2020. PepsiCo , another stock on the list, announced Wednesday it has agreed to acquire Rockstar Energy for $3.85 billion. The fact that Pepsico is still investing in its business even during major uncertainty, is a nod to the company's low risk and high quality profile. Home Depot 's stock will likely get a boost from low interest rates. Home improvement stocks often see more foot traffic when homeowners refinance their mortgages and put the extra money back into their residence. Health care giant UnitedHealth , fast food chain McDonald's , NextEra Energy , Nike and Walmart also make the list. — with reporting from CNBC's Michael Bloom.

A giant sculpture reads "Do the right thing," at the Nike headquarters on March 22, 2018 in Beaverton, Oregon.

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(This story is for CNBC Pro subscribers only.)

While coronavirus fears wreak havoc on the markets, these high quality stocks are the safest to own in a downturn, according to Bank of America.