4 Trending Defensive Stocks To Watch Right Now
Defensive stocks are a type of investment that is designed to protect shareholders from turbulence in the stock market. Next, defensive stocks tend to perform well in times of economic uncertainty and market volatility, which makes them a popular choice for risk-averse investors. In addition, defensive stocks typically belong to industries that are considered to be essential, such as healthcare and utilities.
This means that even if the overall market is experiencing a downturn, these stocks are less likely to be affected. Defensive stocks also tend to have high dividend yields, which can provide income during periods of market turmoil. For these reasons, defensive stocks are an important tool for managing portfolio risk. Keeping this in mind, here are four defensive stocks to watch in the stock market today.
Defensive Stocks To Buy [Or Avoid] Now
- Northrop Grumman Corporation (NYSE: NOC)
- Lockheed Martin Corporation (NYSE: LMT)
- Colgate-Palmolive Company (NYSE: CL)
- Costco Wholesale Corporation (NASDAQ: COST)
Northrop Grumman Corporation
Kicking off the list, Northrop Grumman Corporation (NOC) is an American multinational aerospace and defense technology company. For starters, Northrop Grumman is a leading provider of high-tech products and services for the military, government, and commercial customers. The company’s products include aircraft, spacecraft, missiles, drones, satellites, cybersecurity systems, and more.
Aside from this, just last month the company announced its Board Of Directors declared a quarterly dividend of $1.73 per share of NOC common stock. As it stands, NOC provides its shareholders with an annual dividend yield of 1.48%. What’s more, also in August the company announced they had been selected by the Missile Defense Agency to spearhead the Homeland missle defense program. In detail, the contract has a maximum amount of $3.2 billion that NOC can be awarded.
Moving along, shares of NOC stock are up by over 20% since the start of 2022 outperforming the broader markets. as of Wednesday early morning NOC stock is trading at $468.93 per share. Keeping this in mind, do you think NOC stock is a good defensive stock to add to your watchlist right now?
Lockheed Martin Corporation
Next, Lockheed Martin Corporation (LMT) is an American aerospace, defense, security, and advanced technologies company. The company has five business segments: Aeronautics, Rotary and Mission Systems, Space systems, Missiles and Fire Control, and Technology Services. Additionally, Lockheed Martin is one of the largest government contractors in the world. Currently, the company has an annual dividend yield of 2.60%.
Continuing forward, in August Lockheed Martin announced its 2nd quarter 2022 fiscal results. In detail, LMT reported earnings per share of $6.32, along with revenue of $15.4 billion. This is in comparison with Wall Street’s consensus estimates for Q2 of earnings per share of $6.29 and revenue of $16 billion. On top of that, the company said it now estimates full-year fiscal 2022 earnings of approximately $26.71 a share. This does not include $5.16 per share in charges, with revenue of an estimated $62.25 billion.
Furthermore, LMT stock has also outperformed the overall markets year-to-date, as its share price is up over 15% so far in 2022. With that, shares of LMT stock are set to open Wednesday’s trading day at $409.33 per share. Do you think now is a good time to invest in LMT stock amid the recent CPI report data?
Following that, Colgate-Palmolive Company (CL) is an American consumer products company. The company focuses on the production, distribution and provision of oral hygiene, personal care, and pet nutrition products. The company operates in two segments: Oral, Personal and Home Care; and Pet Nutrition. Last week, the company’s Board of Directors declared a quarterly cash dividend of $0.47 per common share. Meanwhile, Colgate-Palmolive has an annual dividend yield of 2.49%.
Separate from that, in late July the company released its most recent second quarter 2022 financial results. In the report, CL reported revenue of $4.5 billion, and an earnings per shrae of $0.71 for the quarter. This is in comparison to analysts’ estimates for Q2 that were earnings of $0.71 per share and revenue of $4.4 billion. What’s more, the company reported net cash provided by operations came in at $914 million for the first six months of 2022.
Noel Wallace, Chairman, President and Chief Executive Officer, commented in his letter to shareholders, “We are very pleased to have delivered our 14th consecutive quarter of organic sales growth at or above our targeted range of 3% to 5%. Net sales increased 5.5% and organic sales grew 9.0%, a significant acceleration versus the first quarter.” As of Wednesday premarket, shares of CL are set to open at $75.43 per share. All in all, will you keeping an eye on CL stock in the stock market today?
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Costco Wholesale Corporation
Closing out the list, Costco Wholesale Corporation (COST) is an American multinational corporation which operates a chain of membership-only warehouse clubs. In short, Costco’s business model is based on selling products in bulk at discounted prices. Costco offers a wide variety of merchandise, including food, electronics, home goods, and apparel. In July, Costco announced its quarterly cash dividend. In detail, the company’s board of directors declared a quarterly cash dividend on COST stock of $0.90 cents a share.
At the end of last month, Costco announced its August 2022 sales results. Getting straight to it, the company reported net sales of $17.55 billion for the month of August. This reflects an increase of 11.4% from $15.75 billion during the same period, in 2021. Moreover, Costco also reported that for the 16-week fourth quarter net sales of $70.8 billion, which represents a 15.3% jump from 61.4 billion on a year-over-year basis. Shares of COST are set to open Wednesday’s trading day at $510.30 per share. With these strong sales figures in mind, do you think now is a good time to invest in COST stock?