In this article, we will take a look at the 10 Best Bear Market Stocks to Invest In Right Now.
A stock index is considered to be in a bear market when its closing price falls at least 20% from its most recent high. A correction is milder, with losses between 10% and 19.9%. A bull market begins once prices climb 20% from the bottom.
Hartford Funds reported that stocks fall about 35% on average during a bear market. In bull markets, they rise 112% on average. Since 1928, the S&P 500 Index has gone through 27 bear markets. Over the same period, there have been 28 bull markets, and the long-term direction has been upward. Bear markets also tend to move quickly, with an average duration of 289 days, roughly 9.6 months. Bull markets take their time, lasting about 988 days, or close to 2.7 years. The difference is noticeable when viewed over multiple cycles.
The report also points out that bear markets used to come around more often. Between 1928 and 1945, there were 12 of them, or one every 1.5 years. Since 1945, there have been 15, which works out to about one every 5.1 years. Around 42% of the S&P 500 Index’s best days in the last 20 years happened during bear markets. Another 36% came in the first two months of a bull market, before the recovery was obvious. It shows how hard it is to step in and out at the right time. Staying invested often ends up being the steadier approach.
The same report makes another point. A bear market does not always mean a recession is underway. Since 1928, there have been 27 bear markets but only 15 recessions. Markets and the economy often move together, but not always in lockstep. Analysts also note differences across sectors. Defensive areas like consumer staples, healthcare, and utilities tend to hold up better. Technology and financials, on the other hand, usually see more swings.
Given this, we will take a look at some of the best bear market stocks.
Photo by Scott Graham on Unsplash
Our Methodology:
For this article, we screened for companies in the defensive sectors like consumer staples, healthcare, and utilities. Preference was also given to companies with competitive advantages that are attractive relative to their historical or sector averages. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These companies are also popular among elite funds and analysts.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. The Clorox Company (NYSE:CLX)
Number of Hedge Fund Holders: 48
On April 21, Kaumil Gajrawala of Jefferies lowered the firm’s price recommendation on The Clorox Company (NYSE:CLX) to $139 from $151. It reiterated a Buy rating on the shares. He noted that Clorox is heading into a difficult second half. Geopolitical tensions, inflation, and continued share losses are weighing on performance. Category improvement remains limited. He added that Q3 organic growth is likely to come in slightly below expectations. FY26 EPS guidance could also be reduced. The focus, in his view, will be on further estimate cuts and commentary around the longer-term outlook.
On April 17, JPMorgan downgraded CLX to Underweight from Neutral. The firm also cut its price target to $99 from $117 ahead of the fiscal Q3 report scheduled for April 30. The firm expects category growth to stay below historical levels for some time. It pointed to “exogenous factors,” including pressure on lower-income US consumers. It also highlighted Clorox’s exposure to categories where private label competition is strong, particularly in trash bags and surface cleaning. In addition, the firm sees cost pressures from diesel and resins. Based on this, it believes there is downside risk to estimates and expects management to narrow its guidance range.
The Clorox Company is a multinational manufacturer and marketer of consumer and professional products.
9. The Southern Company (NYSE:SO)
Number of Hedge Fund Holders: 54
On April 21, David Arcaro of Morgan Stanley lowered the firm’s price recommendation on The Southern Company (NYSE:SO) to $92 from $94. It maintained an Underweight rating on the shares. He said the firm is updating price targets for Regulated & Diversified Utilities and IPPs in North America under its coverage. In March, utilities outperformed the S&P 500’s return.
On April 21, Wells Fargo raised its price objective on SO to $99 from $96. It reiterated an Equal Weight rating on the shares. Following conversations with the companies, the firm updated its Q1 2026 estimates to reflect known and measurable drivers across its regulated utility coverage. It also raised its base value multiple times to 17.5 times from 17 times.
The Southern Company is an energy provider. It owns three traditional electric operating companies, Southern Power Company, and Southern Company Gas. The traditional electric operating companies, Alabama Power, Georgia Power, and Mississippi Power, operate as public utilities. They provide electric service to retail customers across three Southeastern states, along with wholesale customers in the Southeast.
8. Dollar General Corporation (NYSE:DG)
Number of Hedge Fund Holders: 57
On April 21, Evercore ISI lowered its price recommendation on Dollar General Corporation (NYSE:DG) to $145 from $150. It reiterated an In Line rating on the stock.
On April 13, Dollar General Corporation shared plans to roll out an upgraded, AI-enabled in-store audio network across roughly 6,000 stores in 48 states. The company is working with QSIC on this effort. The goal is to make in-store audio more relevant and localized, while also making it easier to measure its impact. It also gives brand partners a more data-driven way to advertise across a very large store base.
This rollout will double the company’s current in-store audio presence. It should also improve how performance is tracked at scale. By Q2 2026, around 12,000 stores are expected to have these audio capabilities. Dollar General operates more than 20,000 stores across the United States. About 75% of the US population lives within five miles of one of its locations. That reach stands out, as in many rural areas, these stores are often one of the most convenient options for everyday essentials.
Dollar General Corporation is a discount retailer offering consumables, seasonal goods, home products, and apparel. Its shelves include both national brands and private label items, usually priced below branded alternatives.
7. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Holders: 71
On April 22, Daiwa downgraded Abbott Laboratories (NYSE:ABT) to Neutral from Outperform. The firm also lowered its price target on the stock to $92 from $113.
On April 20, Matt Miksic of Barclays lowered the firm’s price recommendation on ABT to $143 from $144. It reiterated an Overweight rating on the shares. He described the company’s Q1 report as mixed, but said there are signs of improvement. The recent pullback in the stock, in his view, creates a buying opportunity, as noted in a research report.
During the company’s earnings call for Q1 2026, Philip Boudreau, CFO & Executive VP of Finance, provided guidance for the second quarter, indicating that adjusted EPS was expected to range between $1.25 and $1.31. Chairman, President & CEO, Robert Ford, explained that the company had chosen not to factor in a potential late-year rebound in respiratory testing, as management did not view it as a prudent assumption for the forecast. He added that if the flu season turned out to be as strong as in prior years, the company had the manufacturing capacity to respond.
He also reiterated management’s expectation that growth would accelerate in the second half of the year, supported by pricing actions in the Nutrition segment, new electrophysiology product launches, and continued momentum in the Core Lab business.
Abbott Laboratories is a global healthcare company focused on the discovery, development, manufacture, and sale of a broad range of healthcare products. Its segments include Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices.
6. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 72
On April 21, David Arcaro of Morgan Stanley lowered the firm’s price recommendation on NextEra Energy, Inc. (NYSE:NEE) to $107 from $108. It reiterated an Overweight rating on the shares. He said the firm is updating price targets for Regulated & Diversified Utilities and IPPs in North America under its coverage. In March, utilities outperformed the S&P 500’s return.
On April 21, Shahriar Pourreza of Wells Fargo raised the firm’s price objective on NEE to $99 from $98. It maintained an Overweight rating on the shares. After discussions with the companies, the firm updated its Q1 2026 estimates to reflect known and measurable drivers across its regulated utility coverage. It also raised its base value multiple times to 17.5 times from 17 times.
NextEra Energy, Inc. is an electric power and energy infrastructure company. It operates through its wholly owned subsidiaries, NextEra Energy Resources, LLC, and NextEra Energy Transmission, LLC, together referred to as NEER, as well as Florida Power & Light Company.
5. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 74
On April 20, Lauren Lieberman of Barclays raised the firm’s price recommendation on PepsiCo, Inc. (NASDAQ:PEP) to $158 from $154. It reiterated an Equal Weight rating following earnings. She said PepsiCo Foods North America “finally delivered the volume inflection investors have been waiting for.” At the same time, she noted the company now needs to show that these results can be sustained.
On April 22, PepsiCo announced a multi-year strategic collaboration with Google Cloud. The goal is to strengthen its digital foundation and use the Gemini Enterprise Agent Platform to help teams move from insight to action more quickly and consistently at scale. PepsiCo is working with Google Cloud to reshape its IT ecosystem and advance its multi-cloud strategy. The partnership is designed to give the company more flexibility in using AI tools to address complex business challenges, including supply chain management and go-to-market execution. By moving to Google Cloud’s secure global infrastructure, PepsiCo plans to build new digital capabilities across its operations.
PepsiCo, Inc. operates as a global food and beverage company. It manufactures, markets, and distributes products such as Pepsi, Lay’s, Gatorade, and Quaker across more than 200 countries.
4. Philip Morris International Inc. (NYSE:PM)
Number of Hedge Fund Holders: 82
On April 22, Reuters reported that Philip Morris International Inc. (NYSE:PM) lowered its annual profit forecast amid regulatory uncertainty around its Zyn nicotine pouches and rising competition in tobacco products. The company has been pushing to move beyond cigarettes. At the same time, it is facing stronger competition from alternatives such as British American Tobacco’s Velo, along with delays in getting approval for new Zyn products.
CFO Emmanuel Babeau said a complex regulatory environment continues to slow innovation and the transition of adult smokers to smoke-free products. Philip Morris now expects full-year adjusted EPS of $8.36 to $8.51, down from its earlier forecast of $8.38 to $8.53. The midpoint is about $0.04 above analysts’ expectations, based on data compiled by LSEG.
The company added that it has included a small impact from the Middle East conflict in its outlook, but does not expect any prolonged effect. Shares rose about 6% after strength in its international smoke-free business helped deliver a first-quarter beat. Quarterly revenue came in at $10.15 billion, ahead of estimates of $9.91 bilion. Adjusted EPS was $1.96, above expectations of $1.83. US Zyn shipments declined 23.5%, which the company linked mainly to inventory adjustments by distributors and retailers. In contrast, shipments for its international smoke-free segment increased 11.9%.
Philip Morris International Inc. is an international tobacco company. Its portfolio includes cigarettes and smoke-free products. The smoke-free business also covers wellness and healthcare products, along with consumer accessories such as lighters and matches.
3. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 86
On April 22, Scotiabank raised its price recommendation on Chevron Corporation (NYSE:CVX) to $187 from $168. It reiterated a Sector Perform rating on the shares. The firm said it is updating price targets for US Integrated Oil, Refining, and Large Cap E&P companies under its coverage. Its view on the sector remains mixed. It is generally above consensus earnings estimates for the E&P group, while sitting below expectations for independent refiners. Looking ahead, the firm expects investor focus to shift toward whether recent volatility in the oil market will affect activity levels in 2026 and beyond.
On April 23, Reuters reported that Chevron had fully restored production at its Wheatstone LNG facility in Western Australia after completing repairs tied to cyclone damage from the prior month. The company said Tropical Cyclone Narelle hit the 8.9 million-ton-per-year plant in late March, forcing both LNG processing trains offline.
Danny Woodall, director of operations and maintenance for Australia, said the cyclone’s extreme winds damaged several hundred air-cooled heat exchangers, known as fin fans, making the repair process both extensive and complex. He added that domestic gas supply for Western Australian customers was restored within about a week, while LNG production returned gradually over time.
Chevron Corporation is an integrated energy company. It produces crude oil and natural gas, manufactures transportation fuels, lubricants, petrochemicals, and additives, and develops technologies to support its operations and the broader industry.
2. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 100
On April 22, Merck & Co., Inc. and Google Cloud announced a major partnership aimed at strengthening Merck’s digital backbone as an AI-enabled enterprise. The multi-year investment, valued at up to $1 billion, will introduce an agentic platform across research and development, manufacturing, commercial, and corporate functions. It also includes Google Cloud engineers working directly with Merck teams to deploy advanced AI tools, including Gemini Enterprise.
The partnership brings together Merck’s scientific and data capabilities with Google Cloud’s AI and cloud platforms. The goal is to digitize data and improve productivity across the company’s global workforce of 75,000 employees, supporting its focus on improving and saving lives. By combining their expertise, the two companies plan to build advanced AI solutions using Google Cloud technology. The effort is expected to support scientific innovation and improve operational performance.
Merck & Co., Inc. is a global healthcare company that provides health solutions through prescription medicines, including biologic therapies, vaccines, and animal health products. Its Pharmaceutical segment includes human health pharmaceutical and vaccine products.
1. Walmart Inc. (NASDAQ:WMT)
Number of Hedge Fund Holders: 114
On April 22, Morgan Stanley raised its price recommendation on Walmart Inc. (NASDAQ:WMT) to $140 from $135. It reiterated an Overweight rating on the shares. After meetings with management, including President and CEO John Furner and EVP and CFO John David Rainey, the firm said Walmart continues to benefit from its scale and technology. It also noted that the third-party marketplace and membership offerings are “running strong.”
On April 16, Walmart said it is expanding its Better Care Services platform. The aim is to better support customers looking for weight management and overall health solutions by bringing virtual care, nutrition guidance, and pharmacy access into one place. The platform now includes services for people using or considering GLP-1 therapies. It also offers access to medications through Walmart’s nationwide pharmacy network, including options like Foundayo.
It connects users with providers such as Aaptiv, Berry Street, Curai Health, MyCare by Twin Health, and Wheel. These services include fitness programs, dietitian support, AI-driven coaching, and telehealth care. Prescription fulfillment is handled through Walmart Pharmacy, with integrations such as LillyDirect. Additional tools, including the Nutrition Hub and an updated GLP-1 section on Walmart.com, are designed to support healthier lifestyle choices.
Walmart Inc. is a technology-powered omnichannel retailer. It operates retail and wholesale stores and clubs, along with eCommerce websites and mobile apps, across the United States, Africa, Canada, Central America, Chile, China, India, and Mexico. The company reports through three segments: Walmart U.S., Walmart International, and Sam’s Club U.S.
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