12 Undervalued Defensive Stocks for 2025

10. Molson Coors Beverage Company (NYSE:TAP)

Forward P/E: 9.54

Number of Hedge Fund Holders: 34

Molson Coors Beverage Company (NYSE:TAP) is a holding company that produces and sells beer. It operates around 11 primary breweries, six craft breweries, and one cidery. The company’s geographical segments of operation include the Americas, EMEA, and APAC.

Its consolidated net sales revenue in fiscal Q3 2024 was down 7.8%, primarily due to the end of its brewing contract with Pabst, unfavorable shipment timings, and lower US brand volumes. However, excluding the impact of its contract brewing revenue decline, the company’s annual top-line projected growth is expected to be positive. Its improved cost outlook is in line with its long-term growth algorithm.

This trend is supported by Molson Coors Beverage Company’s (NYSE:TAP) share repurchase program, which it has executed at an accelerated pace for the past quarters. This reflects the company’s continued conviction in its long-term business outlook. It is also making considerable progress across its strategic priorities. Its core power brands are healthy, generating $856 million in underlying free cash flow for the year’s first nine months.

Molson Coors Beverage Company (NYSE:TAP) is also investing in its business and returned $717 million in cash to shareholders through dividends and our share repurchase program. The company plans to continue building on these successes with premiumization in the US and has taken steps to allow more focus on scalable opportunities, such as divesting underperforming craft breweries. Its focused growth plans and long-term opportunities in an expanding premium portfolio of brands in both beer and beyond beer make it one of the best undervalued defensive stocks for 2025.