These Nasdaq survivors that dodged the bear market offer investors stability and earnings growth

Published Mon, May 2 202212:03 PM EDT

April's market sell-off pushed the Nasdaq Composite into a bear market, down well more than 20% from its high. Yet there are a select few stable Nasdaq names that have dodged the bear and are growing earnings in a tough environment. These are the Nasdaq survivors. Last month marked the Nasdaq's worst monthly performance since 2008 , coinciding with the start of first-quarter earnings season. Netflix was among the biggest losers, plunging 35% in one day after sharing a shocking subscriber loss . Amazon also suffered its biggest one-day drop since 2006 after a disappointing quarter. The sell-off came as investors were spooked by Fed rate hikes and surging inflation, which has led investors to rotate out of growth sectors like technology and into safe-haven industries like consumer staples and utilities. But even as big names like Amazon, Netflix and Alphabet dip into bear market territory for the year, some companies have sidestepped major losses and are expected to grow earnings this year. And they have a recent track record of growing profits. To find some of the stocks that have fared the best, CNBC Pro searched for Nasdaq 100 stocks that are down less than 20% from a 52-week high, grew earnings in the last four quarters, are expected to grow earnings this year, and offer a beta under 1, meaning they are less volatile than the rest of the market. Here are the names that made the cut: Semiconductors have dominated as one of the hardest-hit industries in the tech sector, facing supply chain disruptions and fears of slowing consumer spending amid rising inflation. The iShares Semiconductor Index , which tracks the sector, has plummeted 25% since the start of the year. Shares of Texas Instruments , which some analysts have called a stable, low-risk stock for investors looking to get into the chip market, are down 9% since the start of the year. Last week, the semiconductor issued weak earnings and revenue guidance for the current quarter and said it expects lower demand amid Covid-19 restrictions in China. Even though the stock is trading more than 15% off a 52-week-high, it could grow earnings by 7.8% in 2022. A recent screen from CNBC Pro also found that the semiconductor company is a strong dividend generator that investors could use to counter rising inflation. It currently yields about 2%. Wholesale club Costco also made the cut and is expected to bring in 18.3% estimated earnings growth in 2022, despite its shares falling 6% year-to-date. The retailer is trading about 13% off a 52-week-high but analysts see strength as consumers look for shopping bargains. Wells Fargo last week reiterated an overweight rating on Costco, along with BJ's , noting that gasoline sales are "near-term tail wind as margins rise with prices." Loop Capital Markets also raised price targets on both wholesalers last month , saying they will benefit even as consumers cut spending, due to their lower prices. Payments firms and financial services companies ADP , Fiserv and Paychex (the latter's expected to see the fastest estimated earnings growth on the list, with 23.4%) — also made the cut, as did beverage maker Keurig Dr Pepper , which has said rising prices helped offset flat volumes in the previous quarter .