In this article, we will take a look at the 5 undervalued defensive stocks for 2023. You can skip this part and go to 15 Undervalued Defensive Stocks For 2023.
5. Bunge Limited (NYSE:BG)
PE Ratio as of January 27: 10.00
Missouri-based agribusiness and food company Bunge Limited (NYSE:BG) ranks 6th in our list of the undervalued defensive stocks for 2023. In November, Bunge Limited (NYSE:BG) announced a quarterly dividend of $0.625 per share. Forward dividend yield at the time came in at 2.35%.
4. Pfizer Inc. (NYSE:PFE)
PE Ratio as of January 27: 8.43
Pfizer Inc. (NYSE:PFE) is under pressure amid downgrades from Wall Street analysts who fear short-term challenges as we near the end of the COVID-19 pandemic. However, Pfizer Inc. (NYSE:PFE) remains one of the most stable and defensive companies. Pfizer Inc. (NYSE:PFE) has strong balance sheet and its pipeline is full of promising products. Pfizer Inc. (NYSE:PFE) has at least 19 near-term or expected product launches. These products can add approximately $20 billion in revenues in 2030. Some of Pfizer Inc. (NYSE:PFE)’s promising products are related to hematology, sickle cell disease, and obesity.
Pfizer Inc. (NYSE:PFE) is also a strong defensive player in recessions due to its dividend payments. Pfizer Inc. (NYSE:PFE) has upped its dividends consistently for over a decade now.
While we are nearing the end of the COVID-19 pandemic, there’s no surety that the world will be free of pandemics in the future. On that front, Pfizer Inc. (NYSE:PFE)’s is expanding its mRNA vaccine segment and expects to rake in $10 billion to $15 billion annually from this segment in the long term.
3. Post Holdings, Inc. (NYSE:POST)
PE Ratio as of January 27: 7.77
Post Holdings, Inc. (NYSE:POST) is a consumer packaged goods holding company. Analysts believe Post Holdings, Inc. (NYSE:POST)’s financial position will improve after the company sold BellRing Brands (BRBR).
In the fiscal fourth quarter results posted in November, Post Holdings, Inc. (NYSE:POST) said its adjusted EPS in the period came in at $0.85, beating estimates by $0.15. Revenue in the quarter fell 5.9% to $1.6 billion, beating estimates by a whopping $50 million. Post Holdings, Inc. (NYSE:POST) said that in fiscal 2023 it expects adjusted EBITDA to be between $990-$1,040 million.
As of the end of the third quarter, 29 hedge funds tracked by Insider Monkey had stakes in Post Holdings, Inc. (NYSE:POST). The total value of these stakes was over $1 billion. At the end of the second quarter, 26 hedge funds were bullish on Post Holdings, Inc. (NYSE:POST). The biggest stakeholder of Post Holdings, Inc. (NYSE:POST) at the end of the third quarter of 2022 was William Duhamel’s Route One Investment Company with a $573 million stake.
2. Tyson Foods, Inc. (NYSE:TSN)
PE Ratio as of January 27: 7.37
One of the major meat companies in the US, Tyson Foods, Inc. (NYSE:TSN) ranks 3rd in our list of undervalued defensive stocks for 2023. In the fourth quarter of 2022, Tyson Foods, Inc. (NYSE:TSN)’s adjusted EPS came in at $1.63 on $13.74 billion revenue, missing estimates of $1.72 EPS but beating forecasts of $13.49 billion for revenue. For 2023, Tyson Foods, Inc. (NYSE:TSN) said it expects profitability improvement as it prepares to cut costs.
As of the end of the third quarter, 35 hedge funds tracked by Insider Monkey had stakes in Tyson Foods, Inc. (NYSE:TSN).
1. GSK plc (NYSE:GSK)
PE Ratio as of January 27: 4.03
GSK plc (NYSE:GSK) is a British pharma giant. GSK plc (NYSE:GSK) has a PE ratio of 4.03 and a dividend yield of over 4% as of January 27. GSK plc (NYSE:GSK) has been around for about 200 years. It has one of the biggest R&D budgets in the industry. With a solid dividend and a diversified business model, GSK plc (NYSE:GSK) is strong enough to weather any economic storm. That’s why it made it to our list of the undervalued defensive stocks for 2023. In the third quarter, GSK plc (NYSE:GSK)’s revenue jumped about 9% on a YoY basis to reach £7.8 billion. GSK plc (NYSE:GSK) also upped its full-year guidance.
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