Categories
Defense Stocks Featured Investing Stock Market Today Stocks to Watch

3 Defensive Stocks To Watch In August 2022

Should investors be watching these defensive stocks this week?

Check Out These Three Top Defensive Stocks In The Stock Market This Week

As investors gear up for key economic data on Wednesday this week, defensive stocks may be worth your attention right now. After all, defensive stocks are a type of investment that can help to protect your portfolio during times of stock market turmoil. As a result, they can help to reduce the overall risk of your portfolio. Defensive stocks can come from a variety of sectors, but they typically have strong balance sheets and consistent earnings.

Notably, Utilities, Consumer Staples, and Health Care are often considered defensive sectors. Specifically, we can take a look at top defensive stocks such as UnitedHealth Group (NYSE: UNH) and The Procter & Gamble Company (NYSE: PG). While the S&P 500 is down over 9% year-to-date, these defensive stocks have seen their share price increase by over 8% so far this year.

However, it is important to remember that no stock is completely immune from market risk. Defensive stocks can still lose value if the overall market declines sharply. But if you are looking for a way to help weather the storm during a market downturn, defensive stocks may be worth considering. If you’re keen on investing in defensive stocks now, here are three to check out in the stock market today.

Defensive Stocks To Buy [Or Avoid] Now

United Parcel Services (UPS Stock)

United Parcel Service (UPS) is a global leader in logistics, offering a wide range of solutions including the transportation of packages and freight, the facilitation of international trade, and the deployment of advanced technology to more efficiently manage the world of business. As one of the largest companies in the world, UPS has a vast network of air, ground, and ocean transport capabilities, and its stock is widely traded on major exchanges. Given its size and reach, UPS is often considered a bellwether for the global economy, and its stock price is closely watched by investors. Despite some recent challenges, UPS remains a powerful force in the logistics industry, and its stock remains a popular choice for investors.

Just last month, UPS announced its second quarter 2022 earnings results. Diving in, the company posted earnings per share of $3.29, with revenue of $24.8 billion for Q2. This was a beat versus analysts’ consensus estimate of earnings of $3.14 per share and revenue of $24.6 billion. Also, UPS recorded a 5.7% increase in revenue on a year-over-year basis. Following up on that strong quarter, the company also announced its regular dividend of $1.52 per share. As a result of this announcement, UPS has either maintained or raised its dividend every year since it went public on the stock market in 1999. Given the financial strength, and track record, do you have UPS on your list of defensive stocks to watch?

Source: TD Ameritrade TOS

[Read More] Stock Market Today: Dow Jones, S&P 500 Open Mixed; Walmart, Home Deport Rally On Better-Than-Expected Earnings

McKesson (MCK Stock)

Next up, let’s dive into McKesson (MCK). The company is a healthcare supply chain management solutions company. McKesson’s solutions help streamline the entire healthcare continuum, from patient care to administration. Additionally, the company also provides a wide range of software and hardware solutions for healthcare providers, payers, and other organizations. MCK stock is a well-established name in the healthcare industry, and its shares are up over 50% year-to-date. McKesson’s strong fundamentals and growth prospects could make it a compelling investment for long-term investors.

Earlier this month, McKesson reported a beat for its Q1 2023 fiscal results. In detail, the company reported earnings per share of $5.83 on revenue of $67.2 billion. This is in comparison to wall street’s consensus earnings estimates of $5.31 per share, on revenue of $64.4 billion. Additionally, revenue increased 7.1% on a year-over-year basis.

McKesson had a solid start to fiscal 2023. Our results this quarter demonstrate the strength of our streamlined portfolio and successful execution as a diversified healthcare services company,” commented Brian Tyler, CEO. “Our talented associates continue to deliver exceptional performance, and we remain confident that our strategy positions McKesson for long-term growth and value creation.

Source: TD Ameritrade TOS

Northrop Grumman Corporation (NOC Stock)

Following that, we have Northrop Grumman (NOC). For starters, the company is an American aerospace and defense technology company headquartered in Falls Church, Virginia. Northrop Grumman ranks among the world’s largest defense contractors, with over 125,000 employees and operations in 30 countries. Northrop Grumman’s products include aircraft, spacecraft, radar systems, and missiles.

At the end of July, Northrop Grumman reported Q2 earnings of $6.06 per share on revenue of $8.8 billion. This is in comparison with the consensus estimates of $6.03 earnings per share on revenue of $9.1 billion. Meanwhile, the company did reaffirm its 2022 guidance, providing an earnings estimate range of $24.50 to $25.10 per share, on revenue of $36.54 billion. Year-to-date shares of NOC stock have advanced over 26%, and the stock is currently trading at $486.94 per share on Tuesday afternoon.

Kathy Warden, CEO and President commented in her note to shareholders, “Northrop Grumman’s strategy to provide differentiated solutions in our customers’ highest priority areas is delivering results. In the second quarter, we had outstanding bookings and backlog growth, and strong segment operating margins, Demand for Northrop Grumman products and our operational performance remain strong. We are affirming our full year guidance, as we see the tight labor market, that has impacted our growth in the first half, beginning to ease in the second half of the year.” Considering all of this, is NOC stock a buy right now?

Source: TD Ameritrade TOS

If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!!

By Josh Dylan

Josh Dylan is an active contributor to StockMarket.com. His forte is in geosocial events and emerging trends in the stock market today. As an active contributor to other financial outlets like MarijuanaStocks.com, his ability to study current events and determine the potential market reaction is what sets him apart from other writers.

After studying at UC Santa Cruz and earning a bachelor's of art and art history, Josh also went on to start his own business in art resale. Identifying underserved niches like this has allowed him to think outside the box when it comes to applying this approach to the stock market.

His new-age take on social media and branding gave Josh the foresight to apply certain lifestyle trends to market moving topics. This has included the recent trend in the cannabis industry and marijuana stocks as well as following emerging technology such as artificial learning and web-bots. Fundamentals are just as important as momentum in Josh’s opinion. Being able to understand how to apply popular trends to investing is of major importance. If the price of oil is sinking but the price of gold is following along, we want to understand why, not just follow the broader trend.

Josh Dylan makes it a point to not only mention what hot “today” but also find ways to apply that to find future opportunity in the stock market. What’s more is that Josh has become an active part in the StockMarket.com social media team. He works to delivery top research not only one StockMarket.com but also bring it to the readers, directly.

By studying the macro-economic events in the market, Josh makes sure to find events that could shift micro-economic trends. He prides himself on taking a unique approach to information but not taking things for “face value”. When it comes to the stock market, things can change at a moment’s notice and Josh makes sure to stay ahead of that with sound research and diligence. When Josh isn’t writing about the stock market, he enjoys spending time with his family and surfing. He currently calls Southern California his home.

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments