5 big stocks thrive in corrections
Traders work on the floor of the New York Stock Exchange. Brendan McDermid | Reuters

Investors are hopeful the market can pull out of its latest correction, which this week violently yanked the S&P 500 down nearly 12% from its high on May 21, 2015. But given all the risks - a slowing economy in China and decent odds of a hike in short-term interest rates sometime this year in the U.S. - investors know the market could have some trouble shaking off the malaise.

And that's why investors are wise to know what kinds of stocks tend to hold up best—even during corrections.

Utilities certainly deserve the reputation they get for being a bastion of strength during corrections. Four of the five stocks that have thrived and posted average gains in the previous five corrections during the past are all utilities. That truth goes even further. Nearly half of the 37 stocks in the S&P 500 that have beaten the the market in each of past six corrections—including the current one—are utilities stocks.

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Public Service Enterprise is the classic example of a correction-resistant stock. Shares have gained 3.2% on average over the past five corrections - while the market itself has dropped 16.3% on average during the same time periods. The stock's market-beating dividend yield of 2.8% provides investors with some cover, too. The stock hasn't fared quite as well in the current correction—falling 8.8% from the high in May. But that's still much better than the 12.4% decline by the S&P 500 during the same period.

If there's been a stock that delivers big-time during corrections, it's Stericycle. The company that provides a variety of hazardous waste removal services has risen 1.3% on average during the previous five correctionsmaking it a solid performer in the S&P 500 by this measure. Stericycle, too, has been pulled into the market's recent selloff. Shares are down 1.9% from the market's May high. But it's living up to its reputation again this time - as the stock has held up the best among the five stocks from the highs among these five stocks.

Read More What it takes to survive the selloff

