Buy these 'ports in the storm' for a volatile 2022, says William Blair

Published Tue, Feb 1 202212:45 PM ESTUpdated Tue, Feb 1 20224:16 PM EST

U.S. equity markets are off to a rocky start in 2022, so William Blair recommended "ports in the storm" stock picks to ride out the next two years. January marked the worst month for the S & P 500 since March 2020 as investors brace for the Federal Reserve to tighten monetary policy. "With the recent sell-off in the markets, primarily as a result of the uncertainty associated with the Fed's looming action to fight inflation, the continuing COVID pandemic, and geopolitical tensions between Russia and Ukraine, we have compiled a list of stocks that we believe are best positioned to outperform the market over the next two years," William Blair analysts said in a note Monday. The firm in the past several decades has published lists during volatile periods in the markets. "While such uncertainty is troubling to all equity markets investors, including us, it also presents an opportunity for William Blair to reiterate its commitment to the identification of quality growth stocks," analysts said. William Blair selected names from the following traits: "superior business models, attractive growth opportunities, high barriers to entry, solid balance sheets, and a record of strong management." Take a look at five of William Blair's large-cap stock picks for the next two years. Facebook-parent Meta Platforms makes William Blair's list of "ports in the storm" picks. The firm is bullish on Meta's shifting focus toward the metaverse and its continued dominance in digital advertising. "The expansion into the metaverse provides a significant opportunity for Meta to both open new channels for monetization and further its goal of global connectivity, in our view," analyst Ralph Schackart said. Mastercard also makes the firm's list, benefiting from its scale as an incumbent. "We believe Mastercard remains uniquely positioned to benefit from long-term secular trends, which include increased global consumption and the secular shift to electronic payments," William Blair's Robert Napoli said. Workforce management software Workday is another stock William Blair highlights. "We believe Workday is one of the highest-quality companies in our coverage with a massive addressable market," analyst Matthew Pfau said. Other stocks on the list include Marvell Technology and Twilio . — CNBC's Michael Bloom contributed to this report.

Investors are staying on the sidelines amid a broad selloff in tech stocks this year. Shares of Facebook parent Meta are down more than 30% this year amid a troubling macro environment and weaker-than-expected results.

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U.S. equity markets are off to a rocky start in 2022, so William Blair recommended "ports in the storm" stock picks to ride out the next two years.