The stock market has taken a sharp turn after two years of blockbuster gains, and many investors have felt uneasy. These investors are now turning to consumer defensive stocks due to growth stocks sputtering amid a new wave of tariffs rattling global trade.
Consumer defensive stocks provide essential goods and services that people rely on regardless of economic conditions and are more insulated during market downturns. Investors have piled into consumer defensive stocks for that reason, and it’s a good idea to look into the biggest winners in this sector.
Even during bear markets, there are pockets of the market that perform exceptionally well. For example, I identified Why These 15 Healthcare Stocks Are Surging in 2025 in another article.
A supermarket shelf overflowing with a variety of fast-moving consumer goods.
Methodology
For this article, I screened the best-performing consumer 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).
15. BJ’s Wholesale Club Holdings Inc (NYSE:BJ)
Number of Hedge Fund Holders In Q4 2024: 43
BJ’s Wholesale Club Holdings Inc (NYSE:BJ) is a leading operator of membership warehouse clubs that offers up to 25% savings on manufacturer-branded groceries compared to traditional supermarket competitors.
The company’s stock has seen significant growth in 2025 due to strong financial performance reported in their 10-K filing for the fiscal year ended February 1, 2025. Net sales increased to $20.0 billion from $19.5 billion in the previous year, while membership fee income rose by 8.5% to $456.5 million.
The company’s improved profitability, with net income increasing to $534.4 million from $523.7 million in the previous year, has been attributed to higher membership fees and improved sales in perishables and general merchandise.
The company’s expansion strategy has also boosted positive market sentiment with new locations opening in February 2025, including clubs in Brooksville, Florida, and Myrtle Beach, South Carolina. These new locations feature member perks like low-priced fuel.
The consensus price target of $110.82 implies 3.66% downside.
BJ stock is up 28.75% year-to-date.
14. Anheuser-Busch InBev SA/NV (NYSE:BUD)
Number of Hedge Fund Holders In Q4 2024: 31
Anheuser-Busch InBev SA/NV (NYSE:BUD) is a global producer, distributor, and marketer of beer, alcoholic beverages, and soft drinks with an extensive portfolio of brands including Budweiser, Stella Artois, Corona, Beck’s, and many others.
The stock is up significantly so far in 2025, as the stock has been recovering from the earlier selloff since October 2024 to early 2025. This year, though, the stock has made a solid comeback as investors pile into more defensive picks.
The consensus price target of $66 implies 1.38% upside.
BUD stock is up 30.06% year-to-date.
