Top Consumer Defensive Sector List | Screener - Yahoo Finance (2024)

FAQs

What are the most defensive sectors? ›

Due to the constant demand for their products, defensive stocks tend to perform better in a declining market. There are three main defensive sectors: Utilities, Consumer Staples, and Health Care. Utilities: Water, gas, and electric utilities are needed in all phases of the business cycle.

Companies engaged in the manufacturing of food, beverages, household and personal products, packaging, or tobacco. Also includes companies that provide services such as education & training services.

Water, gas, and electric utilities are examples of defensive stocks because people need them during all phases of the business cycle.

Consumer cyclicals are stocks of companies making consumer products that are greatly influenced by the ebbs and flows of the business cycle. A defensive stock is one that provides a consistent dividend and stable earnings regardless of the state of the overall stock market or economy.

Stocks in the defensive sector include companies in household products, food producers, pharmaceuticals, and utilities. Examples of companies in this sector include Walmart (WMT), Tyson Foods (TSN), and FedEx (FDX).

Among equities, defensive stock market sectors including consumer staples, utilities, and health care have outperformed during bear markets. 4 The goods and services these sectors supply tend to be in demand regardless of economic or market conditions.

Morningstar US Consumer Defensive TR USD

The index measures the performance of companies engaged in the manufacturing of food, beverages, household and personal products, packaging, or tobacco.

Consumer defensive companies are engaged in the manufacturing of food, beverages, household/personal products, packaging, or tobacco. Procter & Gamble PG, PepsiCo PEP, and Costco Wholesale COST are among the largest companies in the consumer defensive index.

Is healthcare defensive or cyclical? ›

The Cyclical super sector has four sectors: Basic Materials, Consumer Cyclical, Financial Services, and Real Estate. The Defensive super sector has three sectors: Consumer Defensive, Healthcare, and Utilities.

Aggressive investing is a term used to describe an investment strategy that carries a high level of risk with the potential for high returns. This type of investing is typically associated with stocks, mutual funds, exchange-traded funds (ETFs), options and futures, real estate, and alternative investments.

Consumer staple stocks create a "defensive position" in your stock portfolio, which helps to stabilize your entire portfolio during market volatility. Another reason you may invest in consumer staple stocks is that you often provide consistent dividend income, an attraction to income-seeking investors.

Are banks cyclical stocks? Consumer banks (those that lend money to individuals, through loans, mortgages and credit cards) generally tend to be classified as cyclical stocks, as the demand for their services increases during periods of increased economic activity.

In general, defensive stocks tend to have a market beta of less than 1, meaning they will outperform the broader market when the index falls. In contrast, cyclical stocks tend to have a market beta of more than 1, meaning they will underperform when the index falls.

Just as companies are grouped into industries and industries are grouped in sectors, sectors can be grouped into three super sectors: the Sensitive Super Sector, the Defensive Super Sector, and the Cyclical Super Sector.

For example, some investors might argue that certain giants in the tech sector — like Amazon and Alphabet (Google's parent company) — are prosperous, life- and industry-dominant, and adaptable enough to be considered defensive stocks.

The business cycle refers to the alternating phases of economic growth and decline. read more Examples of Defensive sector stocks include utilities, consumer durables, pharmaceuticals, and real estate.

In general, defense stocks (companies that produce weapons and armaments) tend to fare the best during a wartime environment. Energy companies may also see a boost in conflicts that result in higher oil and commodity prices.

What is the best protection against stock market crash? ›

2023 may see persistence of the past year's challenges—including rising input costs and pressured consumers. But some companies may shine, including those that can raise prices without losing sales volumes, those with emerging-markets exposure, and firms that manufacture cheaper "private-label" alternatives.

The best performing Sector in the last 10 years is Information Technology, that granded a +19.62% annualized return. The worst is Energy, with a +3.37% annualized return in the last 10 years. The main S&P 500 Sectors can be easily replicated by ETFs.

The most obvious mistake one can make when retiring into a bear market is to sell stocks when they are low. This can be tempting when the market is down and times look bleak, but it is important to remember that bear markets are temporary. The market will eventually recover.

Investors can create a hedge with defensive stocks during a bear market if they do not want to exit the markets entirely. Examples include The Procter & Gamble Company (PG), Campbell Soup Company (CPB) and The Coca-Cola Company (KO).

XLP - Performance Comparison. In the year-to-date period, VDC achieves a 0.62% return, which is significantly higher than XLP's -1.46% return. Both investments have delivered pretty close results over the past 10 years, with VDC having a 9.07% annualized return and XLP not far behind at 8.90%.

A 5-star rating means the stock is undervalued and trading at an attractive discount relative to its fair value estimate. To unlock pre-built screens curated by our seasoned analysts, subscribe to Morningstar Investor.

A rating of 93 puts Walmart Inc (WMT) near the top of the Consumer Defensive sector according to InvestorsObserver. Walmart Inc's score of 93 means that it ranks higher than 93% of stocks in the sector. In addition, its overall score of 97 ranks it higher than 97% of all stocks.

Is Home Depot a defensive stock? ›

Home Depot stock (HD) trades at 19 times versus an average of 21 times. Sure, sales of home-improvement products could decline as households spend less, but the sector also has defensive qualities.

Johnson & Johnson (JNJ Stock)

As a healthcare company, it is considered a defensive stock due to the constant demand for its products and services.

It's a 'Twilight Zone World'. Investors might figure that a high-growth stock with a big valuation and iconoclast CEO would be risker than the overall market.

Generally, the industries known to fare better during recessions are those that supply the population with essentials we cannot live without that. They include utilities, health care, consumer staples, and, in some pundits' opinions, maybe even technology.

Pharma And IT:

In the Indian stock market, IT and pharmaceutical sector stocks are also considered as defensives.

While the product names and descriptions can often change, examples of high-risk investments include: Cryptoassets (also known as cryptos) Mini-bonds (sometimes called high interest return bonds) Land banking.

The most successful investors invest in stocks because you can make better returns than with any other investment type. Warren Buffett became a successful investor by buying shares of stocks, and you can too.

Defensive funds invest in financial assets that have some resilience against downturns in the economy. Such assets can include, for example, shares in companies in defensive sectors, such as utilities, consumer staples and healthcare, or bonds that have a short time before they mature and so carry less risk.

Is McDonald's a defensive stock? ›

As far as defensive stocks are concerned, McDonald's (NYSE:MCD) is a well-loved classic. The company has historically provided a lengthy track record of steady returns, making it a favorite among investors. Its widespread global presence also reduces its vulnerability to fluctuations in the U.S. economy.

The Cyclical super sector has four sectors: Basic Materials, Consumer Cyclical, Financial Services, and Real Estate. The Defensive super sector has three sectors: Consumer Defensive, Healthcare, and Utilities. The Sensitive super sector also has four sectors: Communication Services, Energy, Industrials, and Technology.

Offensive sectors are the sectors that will do very well - and usually outperform - when the market goes up, while defensive sectors are the sectors that outperform when the market goes down.

Pharmaceuticals and biotech, a classic defensive sector, have done exceptionally well this time, as investors anticipate much more spending on medical preparedness in the future. Stronger balance sheets were also helpful in these sectors.