The Chinese economy was in deep despair last summer when the dragon was breathing fire. Now, coming into 2016, the health of the Chinese economy has yet to show any marked improvement. Naturally, investors at home are unnerved as the broader financial market is somewhat interrelated.

So what happens in the Chinese market takes a fraction of time to cross the Great Wall. A reflection of this was seen at the start of the New Year, when renewed China fears shook the markets worldwide.

China's dwindling stock market and currency devaluation have dampened investor sentiment. The major U.S. indices too are struggling to find solace. So far, the Dow Jones Industrial Average is down 5.8%, while the S&P 500 has lost 6.1%. The tech-laden Nasdaq Composite Index has plunged 7.7%.

The economic slowdown and financial mayhem in China is playing a crucial role in pulling down the global commodity complex, with oil and other commodities struggling to find a bottom. But the impact of China’s waning appetite for commodities was not restricted to oil and the other commodity producers, even blue-chip companies, surrendered their fate to China’s trading behavior.

The China debate will remain the market’s primary preoccupation as the earnings season unfolds. In such a backdrop, it will be prudent to search for stocks that still firmly hold the ground. Experts will guide you toward the U.S. economy, which though not completely insulated against China’s market upheavals, is still on track to attain GDP growth rate of approximately 2.4% in 2016.

The U.S. economy is largely healed. The message was loud and clear, when the Federal Reserve raised the interest rate by a quarter percentage points to 0.25–0.50% for the first time in nearly a decade. Market experts believe that the economy has shown considerable strength and is more balanced now to withstand headwinds such as overseas growth turmoil, weak foreign currencies and sluggishness in the energy sector.

A gradual recovery in the housing market, along with lower gasoline prices, and an improving labor market – with the unemployment rate lingering around 5% – are some favorable economic indicators that play key roles in raising buyers’ confidence. We expect this positive sentiment to translate into higher consumer spending, which accounts for over two-thirds of the U.S. economic activity.

5 Picks for Your Portfolio

What awaits equity investors in 2016 is hard to predict. However, making your portfolio resilient to unforeseen adversities by adding favorably ranked stocks backed by sturdy fundamentals is the wisest thing to do. We have identified five Retail-Wholesale stocks based on their favorable Zacks Rank #1 (Strong Buy) or #2 (Buy).

On top of that, their expected long-term earnings per share growth rate is 10% or more. A favorable rank indicates positive estimate revisions by analysts who are optimistic on the future performance of the company.

We suggest investing in Darden Restaurants, Inc. (DRI - Analyst Report), which sports a Zacks Rank #1 and has a long-term earnings growth rate of 13.5%. The Orlando, FL-based company delivered an average positive earnings surprise of 20% over the trailing four quarters. This operator of full-service restaurants is expected to witness earnings growth of 26.1% in fiscal 2016 and 14% in fiscal 2017. The Zacks Consensus Estimate too has moved up over the past 30 days.

Express Inc. (EXPR - Snapshot Report) with a Zacks Rank #1 and long-term earnings growth rate of 15% is a solid bet. This Columbus, OH-based specialty apparel and accessories retailer delivered an average positive earnings surprise of 34.3% over the trailing four quarters. It is expected to witness earnings growth of 74.8% in fiscal 2015 and 11.5% in fiscal 2016. The Zacks Consensus Estimate too has been on the rise over the past 60 days.

Another stock that investors may look forward to is Francesca's Holdings Corp. (FRAN - Snapshot Report), with a Zacks Rank #1 and a long-term earnings growth rate of 21.3%. This Houston, TX-based operator of a chain of retail boutiques offering fashion apparel, jewelry and accessories delivered an average positive earnings surprise of 2.4% over the trailing four quarters.

The company’s earnings are expected to increase 7.2% in fiscal 2015 and 14.3% in fiscal 2016. The Zacks Consensus Estimate has moved up over the past 60 days.

Investors can also count on The Kroger Co. (KR - Analyst Report), the operator of supermarkets and multi-department stores that carries a Zacks Rank #2 with a long-term earnings growth rate of 10%. The Cincinnati-based company delivered an average positive earnings surprise of 9.8% over the trailing four quarters. The company is expected to witness earnings growth of 16% in fiscal 2015 and 9.1% in fiscal 2016. The Zacks Consensus Estimate too has trended upward over the past 60 days.

Last but not least is Foot Locker, Inc. (FL - Analyst Report), a retailer of athletic shoes and apparel, with a Zacks Rank #2 and a long-term earnings growth rate of 12.3%. The New York-based company delivered an average positive earnings beat of 11.2% over the trailing four quarters. It is expected to witness earnings growth of 18.9% in fiscal 2015 and 11.2% in fiscal 2016. The Zacks Consensus Estimate has been on the rise over the past 60 days.

Bottom Line

Keeping aside the geo-political tensions and the Chinese turmoil for a while, investors can confidently end their search at these stocks that highlight analysts’ constructive view on them via positive estimate revisions. We believe these stocks could fetch you higher returns as soon the market frees itself from all the commotion and enters into a correction mode.