Netflix and more: Analyst picks four stocks to ride out the volatility

Published Thu, Mar 30 20238:51 PM EDT

Markets have had a volatile month, with stocks swinging between gains and losses in response to the banking crisis and yet another rate hike from the U.S. Federal Reserve . "Everything seems to be falling under the weight of the interest rates, but the Fed is not stopping," said Shelby McFaddin, senior analyst at Motley Fool Asset Management, on Thursday. The next Fed decision will be "pivotal," she told CNBC's "Squawk Box Asia" on Thursday, as a further hike "really will sort of dig in sentiment and reflect on valuations for the market." Amid the volatility, McFaddin said she's choosing companies that are "best prepared to weather these storms." "As always, we're in the long game. Macro-economic conditions are out of our own hands and those of the managers running the portfolio companies," she said in notes sent to CNBC. However, there's opportunity even amid the heightened uncertainty, she added, naming four stocks to buy: streaming giant Netflix , software company Salesforce , healthcare intelligence organization Icon and retailer Costco . Netflix According to McFaddin, there's an opportunity for the firm to potentially sweep up extra market share as competitors downsize amid a concentrated market. This is especially the case as Netflix is a cash-generative business that doesn't have to raise much capital to finance its growth, she added. Icon The company is "phenomenal" at what it does, according to McFaddin, who says it's the best in its field which keeps its position "sticky." "When your position is sticky in the tough times, you have a better chance at continuing to win business when business bounces back," she said. Salesforce The firm is rolling back on activities that are a drain on profitability, and on assets that are not performing well, McFaddin said. On its products, she said: "There is a stickiness to that product because it is so well ingrained and just sewn into the fabric of how businesses expand and continue to run efficiently." Costco The retailer is driving sales through "delivering value," said McFaddin. "They can do it because they can win on cost in ways a lot of competitors can't," she added.