Wall Street analysts named a handful of stocks rated “buy” last week as must-have stock picks for the second half of the year. Analysts said these defense companies have characteristics that will carry them through any additional economic and market turmoil. CNBC has combed through recent Wall Street research to find the best buying opportunities as the second half of 2022 begins. Selections include: AbbVie, Eli Lilly, Amazon, Kroger, Levi’s, and Pioneer Resources. Amazon’s stock is down 34% this year, but Jefferies analyst Brent Thill said in a note earlier this week that investors shouldn’t let go of the stock. In fact, Thill predicts the e-commerce giant’s big second half. He expects the stock to outperform through the end of the year, citing a myriad of positive catalysts for his thesis, including easier comparisons to last year’s results, strong growth in Amazon Web Services and reduced multiples. Thill acknowledged the drop in e-commerce traffic across many retail platforms, but said it really had nothing to do with market share losses. “In the long-term, we believe e-commerce will continue to gain a share of retail at a larger scale, and AMZN will continue to gain a share in e-commerce, driven by unparalleled assortment, brand awareness, and logistics,” he wrote. Thill’s advice is to stay calm and take advantage of a rare buying opportunity, especially if stocks remain range-bound. “We see an improvement in the setup in the second half with the comps being easier to handle,” he added. Levi’s The denim jeans were recently named Halftime Top Pick by Bank of America. The company said in a recent note that there is no shortage of positive catalysts awaiting Levy’s. “We believe Levi’s (Levi’s) has several growth drivers to help navigate this difficult consumer background,” said analyst Christopher Nardone. The company’s number of stores continues to grow, and Nardone sees Levi’s quickly capturing market share. “Other growth drivers include deeper penetration into women’s shirts, international expansion, and their recent acquisition of Beyond Yoga,” he added. Nardone praised Levy’s strong management, stating that they are well positioned to weather an economic storm and have an experienced team to do so. He said Levi’s also boasts a highly diversified supply chain, which is key in the face of increased competition. The company’s shares are down nearly 36% this year, but Nardone says the stock is too “disguised” to ignore at these levels. Kroger Inflation penetrates nearly every sector of the economy, but the grocery chain company is well positioned, according to investment firm Scotiabank. “Over the past several years, the company, through strong strategic execution, has distanced itself from the competitive group and strengthened its market position,” analyst Patricia Baker wrote in a recent note to clients. The company was already off to a strong start in 2022 and the rest of the year will be better for Kroger, according to the investment firm. “KR’s focused implementation, sharp cost controls and competitive advantages, including data and proprietary branding, allow it to continue strategic price investment to drive the business forward in the long term,” she said. Describing inflation concerns as exaggerated, Baker said she sees strong momentum as the grocer rolls out more digital capabilities and new choices for consumers. Additionally, the company is releasing a strong earnings report for the first quarter of the fiscal year. In mid-June, it raised its forecast after beating estimates at the top and bottom. The company noted that the results were particularly impressive as market conditions remained volatile. Shares of the company are up more than 6% this year, but the stock undoubtedly deserves a higher multiple, Becker wrote. “We expect Kroger to maintain its strong market position,” she said. Amazon – Jefferies “In the long term, we believe e-commerce will continue to gain share of retail at a larger scale and AMZN will continue to gain share within e-commerce, driven by unparalleled assortment, brand awareness and logistics….see an improved portfolio – up in the second half as ease comps.” Levi’s – Bank of America “We believe Levi’s has multiple growth drivers to help navigate this challenging backdrop of consumers. … Other growth drivers include gaining deeper penetration into tank tops and women’s, expanding internationally, and expanding its recent acquisition of Beyond Yoga.” … Levy recently announced that the long-term financial outlook is compelling and, in our opinion, should receive increased attention as the company continues to implement.” Pioneer Resources – Goldman Sachs”, however, sees an attractive rally, with a total return of 29% on Large Cap Energy after the pullback, and highlight that buying each of the three previous dips in stocks has generated solid returns. On a risk-adjusted basis, they include Top picks, to name a few: SU in Canada, PXD between US E & PS… We think the underperformance in PXD is an attractive entry point, especially with stocks trading around 15% dividend yield per year, on average, according to to our annual estimates for the period from 2022 to 2024.” AbbVie, Eli Lilly, Royalty Pharma – Morgan Stanley “During previous recessions, historical drug volume growth in the United States has slowed by ~1-3%, but has remained positive. Revenue growth has slowed slightly more than the decline in net prices due to patient assistance programs. Companies are on a pre-recession period operating margin and cash flow.Thus, we expect biopharma revenue to remain resilient if economic activity slows, and we prefer growth over value, with our focus on pharmaceutical companies that can grow in two hours of a decade (ABBV, LLY, RPRX “Kroger – Scotiabank” Over the past several years, the company, through strong strategic execution, has distanced itself from the competitive group and strengthened its position in the market. … Focused execution, sharp cost controls and competitive advantages, including private data and branding. Allow it to continue investing strategically in price to drive the business forward over the long term. …We expect Kroger to maintain its strong market position.”