After what has been a tumultuous 12 months for shares, many traders are hoping that markets are at a turning level. However quite a lot of Wall Road banks stay unconvinced that the bear market rally has legs to run — and are urging traders to stay defensive within the months forward. Goldman Sachs , for example, believes circumstances for an fairness backside haven’t but been reached. In a word to shoppers, strategists on the financial institution stated traders ought to proceed to place themselves defensively going into 2023 because the inventory market hasn’t but hit its trough. “We stay comparatively defensive for the three [month] horizon with additional headwinds from rising actual yields probably and lingering progress uncertainty,” Goldman’s Christian Mueller-Glissmann and Cecilia Mariotti wrote. Likewise, Barclays believes the outlook for equities by means of 2023 stays “extraordinarily difficult” and has forecast a shallow recession subsequent 12 months. Citigroup , in the meantime, believes the world is “headed for a 12 months of staggered recessions” and earnings-per-share estimates have additional to fall. “Mix this with increased inflation, and hawkish central financial institution coverage, discovering the suitable allocation to Worth or Progress has been troublesome as evidenced by their increased volatility. This all factors to a choice for extra defensive fashion positioning,” Citi’s analysts, led by Chris Montagu, wrote in a word on Monday. One approach to place defensively is to purchase shares in firms with resilient margins — as suggested by Goldman Sachs in its current word. CNBC Professional screened FactSet for MSCI World shares with a observe document of margin progress that are anticipated to proceed rising their margins over the following 12 months. They’re additionally purchase rated by nearly all of analysts overlaying them and have common potential upside of no less than 20% over the following 12 months. Defensive shares ArcelorMittal , the world’s largest steelmaker, made CNBC’s display. The corporate has grown its gross margin by 24.8% over the previous three years and they’re anticipated to extend by one other 29.2% within the subsequent 12 months, in accordance with FactSet information. The inventory is rated purchase by practically 60% of analysts overlaying it, who give it potential upside of 26.3%. Japanese steelmaker Nippon Metal additionally turned up on the listing. The corporate is predicted to develop its margin by 17.9% subsequent 12 months and analysts give it potential upside of 23.4%. German logistics agency Deutsche Publish is predicted to develop its margin by a whopping 46.3% over the following 12 months, in accordance with estimates from FactSet. Analysts give the inventory potential upside of 34.8%. Bathtub & Physique Works additionally made the display. Earlier this month, the retailer reported third-quarter outcomes that beat expectations and hiked its full-year revenue outlook, in a exceptional turnaround simply months after the retailer minimize its revenue outlook in Could. Billionaire hedge fund supervisor Daniel Loeb’s Third Level disclosed a $265 million place within the firm in mid-November. Loeb shouldn’t be the one one bullish on Bathtub & Physique Works. Some 71.4% of analysts overlaying the inventory charge it a purchase, and provides it common upside of 24.3%. Different shares that turned up on the display embrace meals supply agency DoorDash , French power big Engie and U.S. meals firm Bunge . — CNBC’s Yun Li and Michael Bloom contributed reporting