Recent inflation reports spooked investors, triggering a sell-off on Wednesday, but defensive stocks could provide some stability the next time markets get tough. Producer and consumer price indexes released this week showed annualized inflation still above 2%, a worrying sign for investors hoping the Federal Reserve could soon begin lowering interest rates. Now, federal funds futures price data suggests the first rate cut could come by September, according to the CME’s FedWatch Tool. Those fears have contributed to a market pullback, with the S&P 500 index down about 1% since the start of April. However, the benchmark index has risen 9% since the start of 2024. Investors may consider moving into more defensively focused stocks to prepare for market volatility. On this front, CNBC Pro’s screening tool offers some insights. To find these names, CNBC Pro looked for S&P 500 stocks that meet the following criteria: Beta less than 1, meaning these names are less volatile than the market Compound annual growth rate of net income of 20% or more over the past three years Gross margins of 30% or more Upward from the average analyst price target of at least 10% Of the hundreds of stocks in the index, only four check all of these boxes. Click here to see the list, exclusively for CNBC Pro subscribers. In a time characterized by artificial intelligence and technology outperformance, ServiceNow and Roper Technologies offer investors the chance to play defensive while remaining exposed to the sector. ServiceNow has performed in line with the Nasdaq Composite this year, with a gain of less than 10%. Of the 41 analysts covering the stock, 38 rate it a Buy or Strong Buy, and the average consensus price target implies more than 10% upside for the software stock, according to LSEG. Roper, on the other hand, has struggled this year, with shares of the software stock falling slightly into 2024. But analysts see a rebound on the horizon, with the typical one surveyed by LSEG given a buy rating with a target of price reflecting a rally of more than 10%. The stock also has a dividend yield of 0.6%. NOW ROP YTD mountain ServiceNow vs. Roper, since the beginning of the year Outside of technology, TJX also made the list. The parent company of TJ Maxx and HomeGoods has lagged the broader market this year, adding just over 2%. The average analyst surveyed by LSEG has a buy rating and sees the stock rising more than 16% over the next year. The stock has a dividend yield of 1.6%. Coterra Energy was the last name on the list. The average analyst has a buy rating and expects nearly 14% upside, according to LSEG. Coterra has a dividend yield of 2.9% and shares are up 9% this year. One of the analysts bullish on the stock is Josh Silverstein of UBS. This week he said Coterra is the only company name with a buy rating in the natural gas exploration and production sector. Coterra has “growing oil exposure, a high-level balance sheet, [and] strong shareholder return profile,” Silverstein told clients. “We don’t view them as an average E&P given this profile.”