Do You Have These Defensive Stocks On Your Watchlist?
With the release of the monthly personal consumption expenditures (PCE) today, investors may be keeping tabs on defensive stocks in the stock market today. The PCE, which is the Federal Reserve’s preferred measure of inflation, will offer investors the latest look at how quickly prices are rising across the country. At the same time, with experts warning against the growing risks of a recession, it would make sense that some investors may be reconsidering their risk appetite.
After all, defensive stocks are those that tend to be able to brace for a market downturn. Investors keen on defensive stocks could be looking at the likes of Ollie’s Bargain Outlet (NASDAQ: OLLI). Bank of America (NYSE: BAC) analyst Jason Haas swung to bullish from bearish on the retailer, giving Ollie’s a double upgrade to buy from underperform. The price target on OLLI stock was also boosted from $39 to $75. Haas cites signs of improved availability of closeout merchandise over the past few months. With that being said, here are five defensive stocks to watch in the stock market today.
Defensive Stocks To Buy [Or Sell] Right Now
- BJ’s Wholesale Club (NYSE: BJ)
- US Foods Holding Corporation (NYSE: USFD)
- Celsius Holdings Inc. (NASDAQ: CELH)
- CVS Health Corporation (NYSE: CVS)
- Mondelez International Inc. (NASDAQ: MDLZ)
BJ’s Wholesale Club
Kicking us off today is BJ’s Wholesale Club, a membership-only warehouse club chain that operates across the U.S. The company operates over 200 clubs and over 150 BJ’s gas locations in 17 states. It continues to deliver significant value to its members, consistently offering 25% or more savings compared to traditional supermarket competitors. In the past year, BJ stock has risen over 20%. Last Thursday, BJ’s reported its first-quarter earnings for the year.
Starting with revenue, the company reported net sales worth $4.4 billion. For comparison, this is up by 16.3% compared to last year’s net sales of $3.78 billion. Besides that, BJ’s also saw its total comparable club sales increase by 14.4% year-over-year, while digitally enabled sales grew by 26%. Moving on to profits, BJ’s raked in an adjusted net income of $112.5 million, up from $81.6 million a year ago. More customers seem to be shopping at BJ’s as well, with its membership fee income increasing by 11.9% year-over-year. Thus, should you invest in BJ stock?
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Next up, we have US Foods. Put simply, it is a food service distributor that is primarily engaged in the marketing and distribution of fresh, frozen, and dry food and non-food products to its customers throughout the U.S. The company’s customers include restaurants, hospitals, nursing homes, hotels, colleges, as well as governmental and military organizations. For a sense of scale, the company has a network of over 69 distribution facilities and a fleet of approximately 6,500 trucks.
Last week, the company announced a strategic agreement with Kalera, one of the world’s leading hydroponic indoor vertical farming companies. This will effectively expand the company’s local and sustainable fresh produce portfolio. Moreover, this partnership will grant US Foods access to fresh, sustainable produce all year round through Kalera’s network of controlled environment indoor farms. Considering this partnership, should you be watching USFD stock?
Celsius Holdings is a company engaged in the development, processing, sale, and distribution of functional drinks and liquid supplements. The company’s core offerings include pre-and post-workout energy drinks and protein bars. Its flagship brand is CELSIUS, a calorie-burning energy drink. The company seeks to combine nutritional science with mainstream beverages through its thermogenic (calorie-burning) MetaPlus without the artificial preservatives found in energy drinks and sodas.
This month, the company reported first-quarter earnings that exceeded analysts’ expectations. Revenue for the quarter came in at $133.4 million, up from $50 million a year ago. As for its earnings, the company reported a quarterly net income of $6.7 million, or $0.09 per share, beating expectations of $2.6 million, or $0.03 per share. In the same report, Celsius also said that it placed an additional 700 coolers during the quarter and will continue to accelerate its cooler placements throughout the year. With that being said, will you be watching CELH stock?
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Following that, we have the health services company, CVS Health. In detail, it operates through four segments, Pharmacy Services, Retail/LTC, Health Care Benefits, and Corporate/Other. CVS believes that it can help people navigate the health care system by improving access, lowering costs, and being a trusted partner for every meaningful moment of health.
Earlier this month, CVS reported its quarterly financials that outpaced analyst expectations. For starters, it brought in total revenues of $76.83 billion, exceeding consensus forecasts of $75.39 billion and same-quarter 2021 revenues of $75.39 billion. Besides that, CVS saw its same-store sales grow by 10.7% in the past quarter. Net income, on the other hand, was $2.31 billion, or $1.74 per share. This is a rise from the $2.22 billion, or $1.68 per share in the year prior. With this solid quarter in the books, does CVS stock have a spot on your watchlist?
Lastly, we have Mondelez. In essence, the company manufactures and markets snack food and beverage products. Its brand portfolio includes the likes of famous snack brands such as Nabisco, Oreo, Cadbury, Milka, and Toblerone to name a few. Besides that, it manufactures Trident gum, Halls candy, and Tang powdered beverages. Mondelez has operations in about 80 countries and sells its products in over 150 countries. Last month, it reported its first-quarter 2022 earnings.
To start, net revenues jumped by 7.3% to $7.76 billion, driven by organic revenue growth of 8.6% and incremental sales from the company’s acquisitions of Chipita, Grenade, and Gourmet Food. As for Mondelez’s profits, it saw adjusted earnings of $1.17 billion, rising 11.6% thanks to operating gains. As such, adjusted earnings per share were $0.84, rising 13.9% on a constant currency basis. Looking ahead, the company is updating its 2022 outlook. According to the announcement, Mondelez now forecasts organic net revenue to grow by about 4%. Besides that, its adjusted earnings per share are expected to grow in the mid-to-high single digits. As such, is MDLZ stock worth adding to your watchlist?
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