Defensive stocks are those that tend to hold up better during stock market downturns than the overall market. While there is no guaranteed way to pick a defensive stock, there are some characteristics that these companies tend to have in common. Defensive stocks tend to be high quality, with strong balance sheets and consistent earnings. They also tend to have stable or growing dividend payments, which can provide a measure of income stability during tough times.
In addition, many defensive stocks are large, well-established companies, which gives them a degree of resilience in the face of economic headwinds. While there is no magic formula for picking the best defensive stocks, understanding these characteristics can help investors identify companies that may hold up better during periods of market turbulence. Considering this, let’s look at three defensive stocks to potentially add to our watchlist in the stock market today.
Defensive Stocks To Buy [Or Sell] Right Now
- The Kroger Company (NYSE: KR)
- Kimberly-Clark Corporation (NYSE: KMB)
- BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ)
1. Kroger Co (KR Stock)
To start, The Kroger Company (KR) is one of the oldest and largest grocery store chains in the United States. The company is known for its wide selection of groceries and general merchandise, as well as its comprehensive loyalty program. Kroger also offers a number of digital tools to make shopping easier, including an app that allows customers to shop online and pick up their orders in-store.
KR Recent Stock News
Just last month, Krogers announced that they have entered into a definitive agreement with Albertsons Companies. In detail, Kroger will acquire all of the outstanding shares of Albertsons Companies. Additionally, Albertsons Companies shareholders are estimated to get total consideration that is valued at $34.10 per share. This represents an estimated enterprise value of nearly $24.6 billion. What’s more, this M&A speeds up Kroger’s go-to-market strategy while positioning itself as an omnichannel food retailer.
Furthermore, Rodney McMullen, Kroger Chairman, and CEO commented, “We are bringing together two purpose-driven organizations to deliver superior value to customers, associates, communities and shareholders Albertsons Cos. brings a complementary footprint and operates in several parts of the country with very few or no Kroger stores. This merger advances our commitment to build a more equitable and sustainable food system by expanding our footprint into new geographies to serve more of America with fresh and affordable food and accelerates our position as a more compelling alternative to larger and non-union competitors.“
KR Stock Chart
Year-to-date, shares of KR stock are up 6.35%, outperforming the broader markets so far. Kroger stock closed Wednesday’s trading day green by 1.99% at $48.06 per share.
2. Kimberly-Clark Corporation (KMB Stock)
Second, we have Kimberly-Clark Corporation (KMB). In brief, Kimberly-Clark Corporation is one of the world’s leading manufacturers of consumer products. The company produces a wide range of products, including paper towels, toilet paper, diapers, and feminine hygiene products. In addition, the company also owns a number of well-known brands, such as Kleenex and Huggies.
KMB Recent Stock News
Late last month, Kimberly-Clark announced its 3rd quarter 2022 results. In the report, KMB posted Q3 2022 earnings per share of $1.40, along with revenue of $5.1 billion. Aside from that, the company reaffirmed its guidance for the fiscal year 2022. Specifically, the company said it still estimates 2022 earnings of $5.60 to $6.00 per share and revenue estimates in the range of $19.83 billion to $20.22 billion.
What’s more, Chairman and CEO Mike Hsu commented, “Our third quarter results reflect strong execution by our teams around the world in the face of a challenging macro environment. We delivered organic sales growth across all our segments and continued to provide our consumers with value-inspired innovation.“
KMB Stock Chart
In the last month of trading, Kimberly-Clark stock has recovered 12.41%. Meanwhile, as of the market close on Wednesday, shares of KMB stock closed down 0.59% at $123.83 a share.
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3. BJ’s Wholesale Club (BJ Stock)
Topping off the list, BJ’s Wholesale Club (BJ) is a leading retail chain that offers members deep discounts on a wide range of products, from groceries to electronics. BJ’s club model is similar to other wholesale clubs like Costco (NASDAQ: COST) and Sam’s Club, but BJ’s offers its members even more savings with exclusive deals and coupons.
BJ Recent Stock News
At the end of last month, BJ’s announced it will release its 3rd quarter 2022 financial results on Thursday, November 17, 2022, before the market opens. For a fresher, in the second quarter of 2022, BJ’s Wholesale Club reported better-than-expected results. In detail, the company posted Q2 2022 earnings of $1.06 per share, along with revenue of $5.1 billion.
BJ Stock Chart
Aside from that, shares of BJ stock are up 26.88% in the last 6 months of trading action. Meanwhile, on Wednesday, BJ stock closed modestly higher by 0.47% at $77.59 a share.