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.
A retail employee stocking shelves with consumer packaged goods/manufacturing products.
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).
15. Albertsons Companies Inc (NYSE:ACI)
Number of Hedge Fund Holders In Q4 2024: 70
Albertsons Companies Inc (NYSE:ACI) is one of the biggest food and drug retail chains.
The stock is up significantly so far in 2025 due to multiple analysts upgrading the stock as it is defensive in nature. Many investors are rotating into defensive stocks, and ACI is one of the top picks among smaller defensive companies.
On February 19, 2025, Albertsons announced a $600 million senior notes offering at a lower interest rate of 6.25%, replacing its existing 7.5% notes due in 2026. This move is expected to reduce interest expenses and improve financial flexibility.
Albertsons has been investing heavily in digital transformation and operational efficiency. A notable partnership with TransUnion in January 2025 aims to enhance its advertising capabilities.
The consensus price target of $23.5 implies 6.75% upside.
ACI stock is up 12.97% year-to-date.
14. Adecoagro SA (NYSE:AGRO)
Number of Hedge Fund Holders In Q4 2024: 17
Adecoagro SA (NYSE:AGRO) is a South African agro-industrial company that makes agricultural commodities.
The stock is up significantly so far in 2025 due to ongoing discussions with Tether Investments for a potential acquisition. Tether proposed a tender offer to acquire 51% of Adecoagro’s outstanding shares at $12.41 per share.
Adecoagro reported better-than-expected earnings for Q4 2024, with an EPS of $0.4585, beating forecasts by 12.2%, and revenue of $368.51 million. This exceeded expectations by nearly $20 million.
The performance was driven by record sugar and ethanol production. This contributed to a consolidated adjusted EBITDA of $444 million for the year.
The company achieved operational records in sugarcane crushing and sugar production despite challenging weather conditions. It distributed $102 million to shareholders in 2024 through dividends and share repurchases. It also invested $104.1 million in expansion CapEx projects last year.
The consensus price target of $12.63 implies 17.07% upside.
AGRO stock is up 14.42% year-to-date.
13. Celsius Holdings Inc (NASDAQ:CELH)
Number of Hedge Fund Holders In Q4 2024: 33
Celsius Holdings Inc (NASDAQ:CELH) is one of the biggest companies making energy drinks.
The stock is up significantly so far in 2025 as it reported strong Q4 2024 financial performance.
Celsius reported record revenue of $1.36 billion for 2024, driven by a 22% year-over-year increase in retail sales and a rise in market share to 11.8%. The company also improved gross margins to 48%.
Moreover, the negative impact of PepsiCo’s inventory optimization on Celsius’ revenue growth in late 2024 appears to have subsided.
Analysts now anticipate a rebound in revenue growth for 2025. Celsius announced its acquisition of Alani Nu for $1.8 billion in cash and stock.
This move creates a leading platform in the “better-for-you” functional lifestyle market by combining two fast-growing energy drink brands. The deal is expected to generate cost synergies of $50 million within two years and boost Celsius’ market share.
The consensus price target of $45 implies 48.17% upside.
CELH stock is up 15.30% year-to-date.
12. 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.
11. Nu Skin Enterprises Inc (NYSE:NUS)
Number of Hedge Fund Holders In Q4 2024: 29
Nu Skin Enterprises Inc (NYSE:NUS) is a beauty and wellness company that makes personal care products.
The stock is up significantly so far in 2025 due to it selling the Mavely affiliate marketing platform to Later for $250 million in cash and equity. This transaction generated a five-times return on investment.
Plus, Nu Skin reported better-than-expected Q4 earnings with $445.6 million in revenue and adjusted EPS of $0.38. This exceeded guidance, and the company also projected strong 2025 earnings and revenue guidance despite foreign currency headwinds.
The consensus price target of $6.88 implies 14.43% downside.
NUS stock is up 17.33% year-to-date.
10. Weis Markets Inc (NYSE:WMK)
Number of Hedge Fund Holders In Q4 2024: 16
Weis Markets Inc (NYSE:WMK) is a regional grocery store chain that operates in Pennsylvania and surrounding states.
The stock is up significantly so far in 2025 due to it reporting a 69% year-over-year increase in Q4 net income to $34.68 million and a 46% surge in e-commerce sales for the year. Fiscal year net income rose 5.9% to $109.94 million, with earnings per share of $4.09.
The company also declared a quarterly dividend of $0.34 per share, and Charles Schwab Investment Management increased its holdings in Weis Markets during Q4 2024.
WMK stock is up 17.69% year-to-date.
9. Nomad Foods Ltd (NYSE:NOMD)
Number of Hedge Fund Holders In Q4 2024: 27
Nomad Foods Ltd (NYSE:NOMD) is a European food company that sells frozen products.
The stock is up significantly so far in 2025 as Nomad Foods raised its full-year Adjusted EPS guidance to €1.85-€1.89 from the prior range of €1.81-€1.85 and exceeded consensus estimates.
The company reported strong financial results for 2024 of a 4.3% increase in Q4 revenue to €793 million and a gross profit increase of 9%. It also raised its FY 2025 Adjusted EPS guidance and announced a 13% increase in its first-quarter dividend.
Earlier this year, Nomad Foods provided detailed guidance for 2025. It sees organic revenue growth of 1%-3%, adjusted EBITDA growth of 2%-4%, and adjusted free cash flow conversion of over 90%.
The consensus price target of $24 implies 22.11% upside.
NOMD stock is up 18.29% year-to-date.
8. Herbalife Ltd (NYSE:HLF)
Number of Hedge Fund Holders In Q4 2024: 28
Herbalife Ltd (NYSE:HLF) is a nutrition company that sells health and wellness products.
The stock is up significantly so far in 2025 due to strong Q4 2024 earnings and leadership changes that were announced this year.
Adjusted EBITDA came in at $150 million and surpassed forecasts. It also saw a 22% year-over-year increase in distributor growth for three consecutive quarters.
It also made a $250 million debt repayment in Q4 2024, and its restructuring program (which was initiated and completed last year) is expected to deliver $80 million in annual savings starting this year.
The consensus price target of $9.9 implies 20.95% upside.
HLF stock is up 22.42% year-to-date.
7. Barfresh Food Group Inc (NASDAQ:BRFH)
Number of Hedge Fund Holders In Q4 2024: N/A
Barfresh Food Group Inc (NASDAQ:BRFH) makes ready-to-drink and ready-to-blend frozen beverages, including smoothies, shakes, and frappes.
The stock is up significantly so far in 2025 as it completed a $3 million funding round and announced new partnerships with over 1,400 schools on the West Coast. This includes a collaboration with Revolution Foods, which is the second-largest school meal provider in California.
It reported a quarterly revenue of over $3.6 million in Q3, up 40% year-over-year. It did report a net loss of over half a million, but analysts are bullish due to the growth. Barfresh recently secured three new co-manufacturing locations, boosting production capacity to over 120 million units annually.
The consensus price target of $4.5 implies 24.31% upside.
BRFH stock is up 23.13% year-to-date.
6. 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) operates membership-based warehouse clubs.
The stock is up significantly so far in 2025 due to the company reporting solid Q4 2024 figures. It reported 4% year-over-year comparable club sales, with a 4.6% rise if you exclude gasoline sales.
Moreover, membership fee income grew by 7.9% to $117 million. Digitally enabled comparable sales also surged by 26%, and EPS (diluted) reached $0.92, with an adjusted EPS of $0.93.
BJ’s has pursued an aggressive growth plan and announced the opening of 25-30 new clubs over the next two fiscal years, including its first entry into Texas with locations in the Dallas-Fort Worth area in 2026. Recent openings include Southern Pines, North Carolina (March 7, 2025), and Myrtle Beach, South Carolina (February 28, 2025), along with others planned for 2025.
The consensus price target of $108.71 implies 1.73% downside.
BJ stock is up 23.69% year-to-date.
5. Philip Morris International Inc (NYSE:PM)
Number of Hedge Fund Holders In Q4 2024: 102
Philip Morris International Inc (NYSE:PM) is a tobacco company that sells cigarettes and smoke-free products.
The stock is up significantly so far in 2025 as the company is successfully pivoting to smoke-free products. These products now account for 40% of revenue and over 40% of gross profits.
This includes a 7.3% revenue increase to $9.7 billion in Q4 2024 and a 14% earnings per share growth. Demand for ZYN nicotine pouches and IQOS heated tobacco gadgets are raking in serious cash, with ZYN boasting solid margins.
On top of that, the company’s killing it with strong pricing power and volume growth, even in a tricky global market. Their latest earnings showed a juicy 9.3% bump in adjusted diluted EPS for 2024, and they’re projecting more growth in 2025. Investors love the steady $1.35 quarterly dividend too.
The FDA has also greenlit ZYN in the U.S.
The consensus price target of $144.56 implies 6% downside.
PM stock is up 27.83% year-to-date.
4. Hims & Hers Health Inc (NYSE:HIMS)
Number of Hedge Fund Holders In Q4 2024: 38
Hims & Hers Health Inc (NYSE:HIMS) operates a telehealth platform that connects consumers to licensed healthcare professionals for personalized medical care and wellness products.
The stock is up significantly so far in 2025, as the company reported strong financial results for 2024. Revenue reached $1.5 billion, up 69% from the previous year. Net income hit $126 million, and subscribers grew to 2.2 million, a 45% increase.
The company’s expansion into high-demand areas like weight loss has fueled excitement. It offers compounded GLP-1 medications, which are popular for obesity management. These drugs have drawn attention amid shortages of branded versions. Hims & Hers stepped in to meet this need. The weight loss segment has become a key growth driver.
Plus, 2025 guidance has boosted confidence. It projects revenue between $2.3 billion and $2.4 billion. Adjusted EBITDA is expected to range from $270 million to $320 million. These forecasts signal continued momentum. Analysts and investors see a clear path to further gains.
The consensus price target of $37.31 implies 18.6% upside.
HIMS stock is up 30.23% year-to-date.
3. ChromaDex Corp (NASDAQ:CDXC)
Number of Hedge Fund Holders In Q4 2024: 15
ChromaDex Corp (NASDAQ:CDXC) makes dietary supplements and ingredients for healthy aging.
The stock is up significantly so far in 2025, as the company reported record-breaking results for the fourth quarter and full year of 2024. Total net sales reached $99.6 million for 2024, up 19% from the previous year.
Fourth-quarter sales alone hit $29.1 million, a 37% increase year-over-year. Tru Niagen, their flagship NAD+ supplement, led this growth with $22.7 million in Q4 sales, up 29%.
Profitability has also improved. ChromaDex posted a net income of $8.6 million for 2024, compared to a smaller profit or loss in prior years. In Q4, net income was $7.2 million. The company ended 2024 with $44.7 million in cash and no debt.
The consensus price target of $9 implies 14.78% upside.
CDXC stock is up 48.35% year-to-date.
2. Park Ha Biological Technology Co Ltd (NASDAQ:PHH)
Number of Hedge Fund Holders In Q4 2024: 1
Park Ha Biological Technology Co Ltd (NASDAQ:PHH) develops and sells personalized skincare products in China.
The stock is up significantly so far in 2025, as it debuted on the Nasdaq on December 27, 2024. It raised $4.8 million through an initial public offering (IPO) of 1.2 million shares at $4.00 each. Since then, the stock price has climbed significantly.
The IPO generated strong initial investor interest. The company’s focus on the growing skincare market in China appealed to investors. There, demand for personalized skincare products has been rising.
PHH stock is up 68.52% year-to-date.
1. LQR House Inc (NASDAQ:YHC)
Number of Hedge Fund Holders In Q4 2024: N/A
LQR House Inc (NASDAQ:YHC) operates as a niche e-commerce platform specializing in the spirits and beverage industry.
The stock is up significantly so far in 2025 as it has shown strong revenue growth. In November 2024, LQR House reported a 19.95% year-over-year revenue increase, reaching $384,662.12 compared to $320,666.51 in November 2023. This followed a 424.58% revenue jump in October 2024 compared to the previous year.
Strategic partnerships have also boosted the stock. LQR House recently announced a collaboration with Coinbase Prime for Bitcoin custody and treasury management, which was executed after board approval.
Moreover, the stock regained Nasdaq compliance in December 2024. It maintained a bid price above $1.00 for 10 consecutive days. This removed the risk of delisting. Stability reassured investors and fueled the rally.
YHC stock is up 80% year-to-date.
While we acknowledge the potential of YHC 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 YHC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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