U.S. stock market crash: Make sure you buy some of these quality stocks

Investing.com -- Amid the ongoing U.S. stock market selloff, Bernstein analysts suggested in a note Tuesday that now may be a rare opportunity to buy high-quality stocks at a discount.

According to Bernstein, "factor rotations have been well underway this year," as the S&P 500 dropped 3.1% and the Nasdaq Composite declined 3.5% in the past week alone. 

The selloff has led to "large swings away from momentum and growth factors and toward valuation metrics, dividend yield, and ROE." 

Given rising fears of a growth slowdown or recession, analysts believe that quality exposure with consideration of valuations will be key.

Bernstein’s Quality on Sale model identifies high-quality stocks that have sold off in the short term. 

They note that historically, these stocks have bounced back by 2-3% over the next three months and outperformed by 5-7% in down markets.

"Quality stocks outperform when investors are risk averse," Bernstein noted, adding that its Risk Aversion Signal (RAS) is approaching a risk-off threshold, creating a favorable environment for quality stocks.

Among the current high-quality stocks that meet Bernstein’s Quality on Sale criteria are:

• DexCom (NASDAQ:DXCM)

• Insulet (NASDAQ:PODD)

• Lululemon (NASDAQ:LULU) Athletica 

• Applied Materials 

• Chipotle (NYSE:CMG) Mexican Grill 

• Meta (NASDAQ:META) Platforms 

• Nvidia (NASDAQ:NVDA)

• Netflix (NASDAQ:NFLX)

• Microsoft (NASDAQ:MSFT)

Bernstein concludes that while quality stocks are "rarely cheap," market declines offer opportunistic entry points for long-term investors.