After a volatile year for stocks, many investors are hoping that the market is at a turning point. However, some Wall Street banks still don’t believe the bear market rally is still going on — and are urging investors to remain defensive in the coming months. For example, Goldman Sachs believes that the conditions for an equity bottom have not yet been reached. In a note to clients, strategists at the bank said investors should remain on the defensive through 2023 when the stock market has yet to bottom out. “We’re still relatively defensive for 3 [month] Christian Mueller-Glissmann and Cecilia Mariotti of Goldman wrote. Likewise, Barclays believes the outlook for stocks through 2023 remains “extremely challenging” and has forecast a shallow recession next year. Citigroup, meanwhile, believes the world is “heading towards a terrible recession year” and estimates earnings per share to fall further. “Combining this with higher inflation and central bank hawkish policy, finding the right allocation for Value or Growth is difficult as evidenced by their higher volatility. All All this indicates that the trend favors defensive positioning,” Citi analysts, led by Chris Montagu, wrote in a note on Monday. defensive is buying stocks of companies with flexible margins — as Goldman Sachs advises in its report recently noted CNBC Pro sifted FactSet for MSCI World stocks with a track record margin growth is expected to continue to increase margins over the next 12 months, they are also considered a buy by the majority of analysts and have the potential to average at least 20% upside over the next 12 months. Defensive stock ArcelorMittal, the world’s largest steel producer, appeared on CNBC screens, and the company increased its profit margin. The stock has compounded 24.8% over the past three years and they’re expected to grow another 29.2% next year According to FactSet data, the stock is considered a good buy by nearly 60% of analysts. buyers, who see it as having 26.3% upside potential. The company is expected to increase its profit margin to 17.9% next year, and analysts say its growth potential is 23.4%. According to estimates from FactSet, German logistics company Deutsche Post is expected to increase profit margins by a whopping 46.3% over the next 12 months. Analysts think the stock’s upside potential is 34.8%. Bath & Body Works also does the display. Earlier this month, the retailer reported better-than-expected third-quarter results and raised its full-year profit outlook, a notable turnaround just months after the retailer slashed its profit outlook. in the May. Billionaire hedge fund manager Daniel Loeb’s Third Point revealed a $265 million investment in the company in mid-November. Loeb isn’t the only one upbeat about Bath & Body Works. About 71.4% of analysts rate the stock as a buy and see an average gain of 24.3%. Other stocks appearing on screen include food delivery company DoorDash, French energy giant Engie and American food company Bunge. — CNBC’s Yun Li and Michael Bloom contributed reporting