5 Best Defensive Stocks to Buy Now

2. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 146

Year to Date Performance as of 11/29: -7.50%

Although shares of payments giant Mastercard Incorporated (NYSE:MA) are down 7.5% year to date as of 11/29, the stock is still considered defensive by many investors given that overall consumer spending is expected to continue to increase in the future and Mastercard Incorporated (NYSE:MA) has a good chance of growing along with consumer spending if it continues to innovate.

Baron Funds commented on Mastercard Incorporated (NYSE:MA) in a Q3 2022 investor letter,

Shares of global payment network Mastercard Incorporated (NYSE:MA) fell despite reporting financial results that exceeded Street estimates. Revenue grew 21% and EPS grew 32% in the most recent reported quarter, and strong payment activity has persisted despite high inflation. Share price weakness represented a reversal of outperformance earlier this year and was likely driven by adverse foreign exchange movements and concerns about a potential weakening of consumer spending. We retain conviction due to Mastercard’s long runway for growth and significant competitive advantages.