In this article, we discuss 5 best defensive stocks for an upcoming crash. If you want to read about some more defensive stocks, go directly to 11 Best Defensive Stocks For An Upcoming Crash.
5. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 64
Costco Wholesale Corporation (NASDAQ:COST) engages in the operation of membership warehouses. It is one of the top defensive stocks to invest in. The firm posted earnings for the fourth fiscal quarter on September 22, reporting earnings per share of $4.20, roughly in line with market estimates. The revenue over the period was $72 billion, up more than 15% compared to the revenue over the same period last year and beating analyst expectations by $90 million.
On September 12, UBS analyst Michael Lasser maintained a Buy rating on Costco Wholesale Corporation (NASDAQ:COST) stock with a price target of $595, noting the firm was expected to post a healthy upside for the fourth quarter of 2022.
Among the hedge funds being tracked by Insider Monkey, Washington-based Fisher Asset Management is a leading shareholder in Costco Wholesale Corporation (NASDAQ:COST), with 4.3 million shares worth more than $2.1 billion.
In its Q2 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Costco Wholesale Corporation (NASDAQ:COST) was one of them. Here is what the fund said:
“Portfolio gains were led by a diverse group of contributors. Also in consumer discretionary, Costco Wholesale Corporation (NASDAQ:COST), which operates a chain of membership-only big-box retail stores, continues to impress as it takes to share and becomes more relevant for the consumer even as the world opens up.”
4. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 67
Walmart Inc. (NYSE:WMT) engages in the operation of retail, wholesale, and other units worldwide. The firm is among the best defensive stocks to invest in. On September 21, the company announced that it was planning to hire around 40,000 mostly seasonal workers for the upcoming holiday season. Last year, amid the pandemic recovery boom, the firm had announced plans to hire around 150,000 permanent employees to work over the holidays and beyond.
On September 14, KeyBanc analyst Bradley Thomas initiated coverage of Walmart Inc. (NYSE:WMT) stock with an Overweight rating and a price target of $155, noting that the rating was underpinned by an outlook for defensive growth.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Walmart Inc. (NYSE:WMT), with 9.8 million shares worth more than $1.2 billion.
In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Walmart Inc. (NYSE:WMT) was one of them. Here is what the fund said:
“The pandemic has created challenges for businesses large and small; one major challenge for large essential retailers such as ClearBridge holdings Home Depot, Walmart Inc. (NYSE:WMT) and Costco has been ensuring adequate staffing to meet demand under trying conditions. All three instituted enhanced pay practices during the pandemic, with raises, unplanned bonuses and other benefits helping compensate employees for their efforts in a difficult environment. In September 2020 Walmart raised wages for 165,000 employees, including a number of entry positions to $15 an hour. It followed this in February with a raise for 425,000 workers that moved its average pay above $15 an hour.”
3. The Proctor and Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 71
The Proctor and Gamble Company (NYSE:PG) provides branded consumer packaged goods worldwide. The company is one of the most prominent defensive stocks to invest in. The Proctor and Gamble Company (NYSE:PG) has an impressive dividend profile. It has consistently paid a dividend to shareholders for the past sixty-five years. These payouts have also registered consistent growth in these six decades. On July 12, the firm declared a quarterly dividend of $0.9133 per share, in line with previous. The forward yield was a solid 2.52%.
On August 2, Barclays analyst Lauren Lieberman maintained an Overweight rating on The Procter & Gamble Company (NYSE:PG) stock and lowered the price target to $154 from $157, noting that the firm needed to prove its business model was defensive in this economic cycle.
At the end of the second quarter of 2022, 71 hedge funds in the database of Insider Monkey held stakes worth $5.5 billion in The Proctor and Gamble Company (NYSE:PG), compared to 72 in the preceding quarter worth $6.1 billion.
2. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 71
AbbVie Inc. (NYSE:ABBV) discovers, develops, manufactures, and sells pharmaceuticals. The firm features on the list of best defensive stocks to invest in. On September 6, the company announced that a drug named Linzess had met the main and secondary goals of a phase 3 trial in pediatric patients aged six years to 17 years with functional constipation. Linzess is approved in the US to treat adults with irritable bowel syndrome with constipation or chronic idiopathic constipation but not approved for use in patients less than 18 years of age.
On September 21, JPMorgan analyst Chris Schott maintained an Overweight rating on AbbVie Inc. (NYSE:ABBV) stock with a price target of $180, noting the firm was among the best large cap ideas in the business.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in AbbVie Inc. (NYSE:ABBV), with 4.3 million shares worth more than $645 million.
In its Q2 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and AbbVie Inc. (NYSE:ABBV) was one of them. Here is what the fund said:
“We added to our health care exposure in the quarter with the purchases of Straumann Holding (OTCPK:SAUHF), a Swiss manufacturer of medical instruments, implants and related supplies for dental procedures, in the secular bucket and U.S. pharmaceutical maker AbbVie Inc. (NYSE:ABBV) in the structural bucket. Straumann is the global market leader in dental implants with 29% overall share, a meaningful position within premium implants and smaller share in value implants. The company is also involved in clear aligners through a series of acquisitions as well as peripheral capital equipment around those businesses.
Growth will come from increasing share in both value implants and clear aligners through expansion in emerging markets on top of market growth in its premium implant business. AbbVie is undergoing a transition in anticipation of loss of exclusivity for its blockbuster Humira in the next several years with several commercial therapeutics, led by Skyrizi for psoriasis and Rinvoq for rheumatoid arthritis.”
1. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 83
Johnson & Johnson (NYSE:JNJ) researches and develops, manufactures, and sells various products in the healthcare field. The firm features on the list of best defensive stocks to invest in. On September 14, the company announced that the board of the firm had authorized to buy back up to $5 billion worth of common stock.
On July 21, UBS analyst Kevin Caliendo maintained a Neutral rating on Johnson & Johnson (NYSE:JNJ) stock and lowered the price target to $180 from $185, noting that the second quarter earnings of the firm confirmed the macro undercurrents.
Among the hedge funds being tracked by Insider Monkey, Fort Lauderdale, Florida-based firm GQG Partners is a leading shareholder in Johnson & Johnson (NYSE:JNJ), with 6.6 million shares worth more than $1.2 billion.
In its Q2 2022 investor letter, Mayar Capital, an asset management firm, highlighted a few stocks and Johnson & Johnson (NYSE:JNJ) was one of them. Here is what the fund said:
“Johnson & Johnson (NYSE:JNJ) is currently our largest position and a long-standing holding. The majority of the group’s sales comes from its collection of pharmaceutical franchises, but a large majority (~45%) comes from its collection of medical device businesses and its consumer brands.
Here’s how JNJ make and spend a dollar of revenues: As of 2021, about 55 cents of that dollar comes from its pharmaceutical sales – sales of drugs to pharmacies and distributors – while 30 cents come from the sale of medical devices, such as surgery equipment and orthopaedics. The rest of that dollar in sales comes from sales of JNJ’s consumer brands such as Listerine mouthwash, Nicorette nicotine tablets and Neutrogena cosmetics (…read more)
You can also take a peek at 10 Penny Stocks Redditors are Buying in August and 10 Best Nickel Stocks to Buy Now.
