We recently published a list of Why These 15 Defensive Stocks Are Surging In 2025. In this article, we are going to take a look at where Grove Collaborative Holdings Inc (NYSE:GROV) stands against other defensive stocks that are surging in 2025.
Defensive stocks are surging as investors have been shifting their focus. Growth stocks dominated the past two years. Now, slower economic signals and rising risks are changing the landscape due to market uncertainty.
Defensive stocks offer much more stability and tend to perform well even in tough times. People still need electricity, medicine, and food. That reliability draws investors when uncertainty grows.
Many are rotating into these stocks for safety. The surge suggests a broader trend. It could mark a turning point after years of growth-led rallies., so it’s worth looking into the defensive stocks that stand out right now.
Methodology
For this article, I screened the best-performing defensive stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A person in a bright and spotless kitchen, showcasing the efficiency of the line of household cleaning products.
Grove Collaborative Holdings Inc (NYSE:GROV)
Number of Hedge Fund Holders In Q4 2024: 7
Grove Collaborative Holdings Inc (NYSE:GROV) is a consumer products company that focuses on eco-friendly household goods.
The stock is up significantly so far in 2025 as Grove announced two major acquisitions: Grab Green, a top-performing eco-friendly cleaning brand, and 8Greens, a wellness brand specializing in nutrient-rich supplements. These acquisitions expand Grove’s product portfolio into high-growth wellness categories.
Moreover, Grove reported sequential revenue growth in Q4 2024 for the first time since early 2022. It had positive cash flow for three consecutive quarters and achieved positive Adjusted EBITDA for the full year of 2024.
Grove also completed a voluntary $72 million repayment of term debt in late 2024.
The consensus price target of $2 implies 22.32% upside.
GROV stock is up 17.27% year-to-date.
Overall, GROV ranks 12th on our list of defensive stocks that are surging in 2025. While we acknowledge the potential of GROV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GROV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
