In this turbulent market, certain stocks can remain calm while also providing significant upside potential, according to Barclays. “Perhaps unsurprisingly, low volatility strategies are once again outperforming amid the latest bout of equity market weakness,” the bank’s analysts wrote in a note over the weekend. That weakness continued on Tuesday, as the stock market struggled in volatile to snap a three-week-long decline. But even during the summer rally, the Invesco S & P 500 Low Volatility fund held onto trailing twelve-month relative gains versus the S & P 500 , Barclays pointed out. With that in mind, the firm screened for stocks with low-realized volatility that also offered significant potential upside to Barclays’ price target. To find the names, analysts looked for large-cap companies (at least $5 billion in market capitalization), rated overweight, with at least 10% potential upside and a 360-day realized volatility below 24, corresponding roughly to the bottom quartile of the S & P 500. Here are 10 of those stocks. LibertySiriusXM , which is down 20% year to date, has the largest potential upside, according to Barclays. Analysts see the stock rallying 47%, while its realized volatility over a 360-day period sits at a multiple of 23.4. Several restaurant and food brands also made the list, including McDonald’s . The fast-food chain has 13% upside, according to Barclays’ price target, while the stock’s realized volatility over a 360-day period sits at a multiple of 17.5. Shares are down about 5% so far this year. McDonald’s is an analyst favorite . Piper Sandler analysts, for instance, wrote earlier this month that the company “continues to stand out among peers, which looks largely to do with their committed decision to provide consumers a consistent-affordable option.” Meanwhile, Keurig Dr. Pepper has 21% upside, according to Barclays’ price target. The beverage company, up over 2% year to date, recently denied rumors that it was making a bid for Bang Energy. However, it did say its top capital allocation priority is growing the business through M & A. “We are active in evaluating many opportunities that arise, including in the energy space; however, we are not pursuing a partnership with Vital Pharmaceuticals for the Bang brand,” the company said in a statement. Mondelez International is also well-liked among analysts as a defensive name. The snack food company is down almost 10% so far this year but has 23% upside, according to Barclays’ price target. The Oreo make’s realized volatility over a 360-day period sits at a multiple of 18.1. Mondelez was also recently named in a Stifel/KBW Income Opportunity Ideas List, a compilation of their analysts’ best yield ideas. Consumer goods giant Procter & Gamble also stands out to Barclays analysts, who see 12% upside for the Tide detergent parent. P & G’s realized volatility over a 360-day period sits at a multiple of 18.1. Shares are down more than 16% year to date. — CNBC’s Michael Bloom contributed reporting.
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