Consumer spending habits are evolving under the weight of rising costs and economic uncrtainty, prompting investors to reevaluate where they place their confidence. In this climate, companies that supply essential goods—groceries, household necessities, and personal care products—are drawing renewed interest. These firms operate in sectors where demand holds steady regardless of broader financial trends, offering a measure of stability in unpredictable times. Kroger interim CEO Ron Sargent recently underscored this shift during the company’s Q1 earnings call, noting that “customers are managing their budgets carefully and shifting toward value-oriented items, including private-label and promotional products.” His remarks echo a growing consensus among retail leaders: consumers aren’t cutting back on what they need—they’re being smarter about how they buy it.
This renewed focus on value plays directly into the strengths of the consumer defensive sector. Firms with established distribution networks, trusted brands, and operational discipline are well-positioned to meet current demand patterns while protecting margins. As a result, investors are viewing these businesses not just as defensive plays, but as steady performers in a market searching for balance. For those looking to shield their portfolios while still participating in long-term growth, the case for consumer defensive stocks is gaining strength.
Aerial view of a shopping mall bustling with consumers.
Our Methodology
We sifted through the Finviz stock screener to compile a list of the top consumer defensive stocks that had a average upside potential of over 10% as of June 26. The stocks are ranked in ascending order of their average upside potential. We’ve also added the hedge fund sentiment for each stock, which was sourced from Insider Monkey’s database, as of Q1 2025. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 1000 elite money managers.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Consumer Defensive Stocks to Buy Now
10. The J.M. Smucker Company (NYSE:SJM)
Upside Potential: 12.66%
Number of Hedge Fund Holders: 37
The J.M. Smucker Company (NYSE:SJM) is one of 10 consumer defensive stocks to buy now. Morgan Stanley revised its outlook on The J.M. Smucker Company (NYSE:SJM) following the company’s fiscal fourth-quarter earnings, lowering the price target to $115 from $124 while maintaining an Overweight rating. The move comes after the company posted quarterly results and issued guidance that fell short of analysts’ expectations, prompting concerns about profitability in several key segments.
The firm highlighted a combination of challenges contributing to a projected low-double-digit decline in FY26 earnings. These include weaker-than-expected performance in its coffee division, added pressure from tariffs, and elevated marketing expenditures. Ongoing underperformance from the Hostess acquisition further weighed on the forward outlook. Despite the disappointing guidance, Morgan Stanley analysts noted the company’s forecast appears conservative in several areas. They added that J.M. Smucker’s valuation remains at the lower end of its peer group in the packaged food space, particularly among center-store staples.
The Overweight rating suggests Morgan Stanley continues to see longer-term potential in the stock, underpinned by cost discipline, category resilience, and brand equity across its core offerings. However, the path forward will require improved execution, particularly in coffee and snacking, and a clearer rebound in earnings momentum.
9. The Kraft Heinz Company (NASDAQ:KHC)
Upside Potential: 13.13%
Number of Hedge Fund Holders: 46
The Kraft Heinz Company (NASDAQ:KHC) is one of 10 consumer defensive stocks to buy now. Goldman Sachs has raised its rating on The Kraft Heinz Company (NASDAQ:KHC) to Neutral from Sell, lifting its price target to $27 from $25. The upgrade reflects what the firm describes as a more balanced risk/reward outlook, even as near-term sales pressures persist. In a note to investors, Goldman analysts acknowledged ongoing concerns, including continued softness in scanner data and declining sales and market share across several of Kraft Heinz’s core categories. These challenges, they noted, remain central to the company’s struggle to regain momentum in a competitive consumer environment.
However, the firm pointed to Kraft Heinz’s portfolio of iconic brands as a key asset. With the company recently announcing a review of strategic alternatives, Goldman sees the potential for shareholder-accretive actions that could drive future upside. While details of any possible actions remain unclear, the review signals management’s willingness to pursue structural changes to unlock value. Despite the cautious stance on fundamentals, Goldman now views the downside risk as more limited. As the company evaluates options and works to stabilize performance, the market may begin to respond more favorably to clearer signs of a turnaround.
8. The Coca-Cola Company (NYSE:KO)
Upside Potential: 14.51%
Number of Hedge Fund Holders: 87
The Coca-Cola Company (NYSE:KO) is one of 10 consumer defensive stocks to buy now. Morgan Stanley has elevated The Coca-Cola Company (NYSE:KO) to its top pick within the beverages sector, while maintaining an Overweight rating and setting a price target of $81. The firm’s optimism is rooted in Coca-Cola’s consistent ability to deliver organic sales growth that surpasses both its peers and market expectations. In a recent research note, Morgan Stanley highlighted several factors driving this positive outlook. The company’s strong pricing power stands out, allowing it to maintain healthy margins despite inflationary pressures. Additionally, The Coca-Cola Company (NYSE:KO) continues to see steady volume growth, reflecting ongoing consumer demand across key markets.
The analyst also pointed to the company’s sustained gains in market share and the relatively calm competitive landscape, which together provide a favorable backdrop for continued growth. Morgan Stanley emphasized that investors can acquire Coca-Cola shares at a valuation comparable to its peers but with the benefit of significantly higher long-term organic sales growth. This combination of robust fundamentals and attractive valuation underpins Morgan Stanley’s confidence in Coca-Cola’s prospects. The firm believes that Coca-Cola’s durable growth trajectory makes it a compelling choice for investors seeking stable returns in the beverage industry. Following the announcement, Coca-Cola’s shares showed steady trading, supported by the positive analyst sentiment.
7. Pepsico, Inc. (NASDAQ:PEP)
Upside Potential: 14.95%
Number of Hedge Fund Holders: 71
Pepsico, Inc. (NASDAQ:PEP) is one of 10 consumer defensive stocks to buy now. RBC Capital held its Sector Perform rating on Pepsico, Inc. (NASDAQ:PEP) with a price target of $148, citing ongoing revenue headwinds for the food and beverage giant. The research firm pointed to the company’s “significant underperformance” as a source of concern among investors, many of whom are debating whether to adopt a more positive outlook on the stock. According to RBC Capital, the key to renewed investor confidence lies in a turnaround of PepsiCo’s top-line growth, which the firm expects to remain pressured throughout the current year. Their analysis suggests that the company’s revenue challenges may intensify before showing signs of improvement.
RBC Capital highlighted that a recovery will likely depend on favorable shifts in the macroeconomic environment, more strategic pricing moves, and the introduction of meaningful product innovations. These factors are seen as critical to reversing the current downward trend. While recognizing PepsiCo as a strong company with a well-known portfolio of brands, RBC Capital believes it is premature to expect a bottom in the stock’s performance. For now, the firm maintains a neutral view on PepsiCo’s near-term outlook, emphasizing the need for clear evidence of revenue stabilization before upgrading its stance.
6. Walmart Inc. (NYSE:WMT)
Upside Potential: 15.33%
Number of Hedge Fund Holders: 100
Walmart Inc. (NYSE:WMT) is one of 10 consumer defensive stocks to buy now. Mizuho analysts have raised their price target on Walmart Inc. (NYSE:WMT) to $115 from $105 while reiterating an Outperform rating on the stock. The upgrade reflects Mizuho’s growing confidence in Walmart’s ongoing transformation and its ability to leverage technology to drive growth and operational efficiency.
In a note to investors, the firm praised Walmart’s rapid evolution from traditional retail into a tech-enabled powerhouse. Central to this shift is the company’s investment in faster delivery capabilities, which includes deepening its network of micro-fulfillment centers and integrating online and in-store operations. These enhancements have paved the way for higher delivery volumes and greater customer convenience. Mizuho analysts highlighted several key factors supporting their bullish call. First, Walmart’s ability to offer same-day or next-day delivery on a wide range of products positions it ahead of many competitors in the omnichannel retail space. Second, the scalability of these delivery platforms creates meaningful margin opportunities as volume grows. Finally, Walmart’s digital infrastructure, spanning e-commerce, fulfillment, and logistics, serves as a durable competitive advantage.
Walmart has already demonstrated strong growth in its grocery and general merchandise e-commerce segments, showcasing both resilience and adaptability amid shifting consumer preferences. Mizuho believes the company is well-positioned to benefit from rising demand for online shopping and secure, fast delivery services. As a result, the firm views Walmart Inc. (NYSE:WMT) as a leading beneficiary of retail industry digitization and recommends the stock as a top pick in the consumer sector.
5. Tyson Foods, Inc. (NYSE:TSN)
Upside Potential: 15.72%
Number of Hedge Fund Holders: 25
Tyson Foods, Inc. (NYSE:TSN) is one of 10 consumer defensive stocks to buy now. Goldman Sachs has initiated coverage of Tyson Foods, Inc. (NYSE:TSN), assigning a Buy rating and setting a $67 price target. The firm’s analysts highlighted Tyson’s diverse business segments—beef, chicken, and prepared foods—as a key advantage for reducing earnings volatility over time.
With beef profitability currently at a cyclical low, Goldman views the present share price as a promising point for “patient investors” to enter. The analysts noted that the underlying weakness in beef markets appears to be largely reflected in the stock, allowing for potential returns as meat prices stabilize. In the near term, strength in Tyson’s chicken and prepared foods divisions is seen as a primary growth driver. These segments continue to benefit from steady consumer demand and operational efficiencies, bolstering confidence in Tyson’s performance outlook.
Goldman also emphasized Tyson Foods, Inc. (NYSE:TSN)’s resilience in managing supply and demand fluctuations. The firm’s diversified model is expected to smooth margins and earnings across commodity cycles and consumer patterns. This flexibility gives Tyson an edge compared to peers focused predominantly on a single meat category. The report suggests that Tyson’s current valuation already accounts for challenges in the beef market, providing a foundation for appreciation if conditions improve.
4. ConAgra Brands, Inc. (NYSE:CAG)
Upside Potential: 18.86%
Number of Hedge Fund Holders: 39
ConAgra Brands, Inc. (NYSE:CAG) is one of 10 consumer defensive stocks to buy now. TD Cowen analyst Robert Moskow has lowered his price target on ConAgra Brands, Inc. (NYSE:CAG) to $20.50 from $22, while maintaining a Hold rating on the stock. The adjustment reflects growing concern over the company’s ability to navigate a series of economic and operational headwinds in the year ahead.
In his report, Moskow cited several challenges weighing on Conagra’s prospects. He pointed to rising tariff costs, which could squeeze margins, and reductions to the Supplemental Nutrition Assistance Program (SNAP), which may reduce demand among low-income consumers. These pressures, combined with broader economic strain on price-sensitive shoppers, create a challenging revenue environment for the packaged-food maker. Beyond demand-side threats, Moskow mentioned structural challenges tied to Conagra’s limited pricing power in a competitive retail market. He also flagged ongoing supply chain disruptions as a drag on both costs and execution, suggesting these issues could persist longer than market expectations.
The firm’s outlook implies that upside is limited without meaningful progress on these fronts. According to Moskow, ConAgra Brands, Inc. (NYSE:CAG) must bolster its ability to pass through higher costs and improve operational resilience before the stock can attract renewed investor support. At present, Cowen’s Hold rating reflects a cautious stance, acknowledging the company’s established brand and footprint, but expecting that near-term challenges will likely cap performance until a clearer path to stabilization emerges.
3. The Clorox Company (NYSE:CLX)
Upside Potential: 19.8%
Number of Hedge Fund Holders: 53
The Clorox Company (NYSE:CLX) is one of 10 consumer defensive stocks to buy now. Jefferies has adjusted its price target on The Clorox Company (NYSE:CLX) to $145 from $167, while maintaining a Buy rating on the stock. In its latest research note, the firm warned that the next two quarters “will be complicated to model” due to “shipping timing ahead of Clorox’s U.S. ERP rollout and wind down” which is expected to impact margins through unexpected swings in operating leverage.
Analysts at Jefferies anticipate Clorox’s upcoming guidance will reflect a drop of between 2% and 4% in organic sales, coupled with a low-teens percentage decline in EPS for FY26. Cautioning investors, they noted that “numbers are too high,” recommending a “recalibration” of consensus estimates. Despite these near-term challenges, Jefferies retains confidence in Clorox’s long-term strengths. The firm views the company’s strong consumer staples portfolio and established brand as sufficient to weather temporary operational disruptions. While acknowledging potential volatility in the quarters ahead, Jefferies believes that once the ERP implementation settles, The Clorox Company (NYSE:CLX) will return to a more stable growth trajectory.
Investors are advised to brace for “operating leverage and deleverage that surprises” during the transition period, but remain optimistic about management’s ability to manage through the upheaval and eventually deliver on its core fundamentals.
2. Constellation Brands, Inc. (NYSE:STZ)
Upside Potential: 24.6%
Number of Hedge Fund Holders: 44
Constellation Brands, Inc. (NYSE:STZ) is one of 10 consumer defensive stocks to buy now. Barclays analyst Lauren Lieberman has modestly reduced her price target on Constellation Brands, Inc. (NYSE:STZ) to $202 from $207, while reaffirming an Overweight rating on the stock ahead of the company’s fiscal first-quarter results. In her preview note, Lieberman expressed surprise that, despite Constellation “doing all the right things,” the impressive operating performance hasn’t translated into meaningful stock price gains.
Barclays highlighted several areas of strength within Constellation’s operations. The firm praised its disciplined pricing strategies, persistent control over input costs, and robust demand across its wine and spirit labels. Constellation also continues to benefit from expanding distribution and brand investment in its core markets, including its trend-forward premium offerings. Yet, Lieberman noted, these positives are not fully reflected in current market sentiment. The stock has lagged behind peers despite top-line momentum and margin improvements. She suggested the discrepancy may stem from macroeconomic anxieties or broader sector rotation, rather than any weakness in Constellation’s business model.
Barclays sees the shares as undervalued relative to both its peers and the quality of its evidence-based strategy. The firm believes that once Constellation releases its Q1 earnings and clarifies forward guidance—especially around cost management and volume trends—the market may adjust its view. For investors focused on steady growth and execution, Barclays maintains a constructive stance on the beverage giant.
1. BellRing Brands, Inc. (NYSE:BRBR)
Upside Potential: 37.59%
Number of Hedge Fund Holders: 43
BellRing Brands, Inc. (NYSE:BRBR) is one of 10 consumer defensive stocks to buy now. Mizuho analyst has adjusted the price target on BellRing Brands, Inc. (NYSE:BRBR) to $75 from $85, while maintaining an Outperform rating. The revision comes amid an industry-wide valuation reset in the food producer sector, prompting the firm to recalibrate its expectations for BellRing alongside peers.
Despite the lower target, Mizuho remains positive about BellRing’s prospects. The company’s recent expansion efforts, particularly increased distribution across retail channels, continue to support near-term growth. Analysts also noted the buoyancy of the nutrition category, where BellRing Brands, Inc. (NYSE:BRBR) holds a strong position with its core brands. Additionally, the company has limited exposure to private-label competition, bolstering its pricing power and margin resilience.
Mizuho’s industry review prompted valuation adjustments across several food stocks, but the analyst emphasized that BellRing retains structural advantages. The diversified flavor-infusion portfolio and robust growth in categories like shake-based nutrition offerings provide a foundation for sustained performance. BellRing’s ability to expand shelf presence and execute within fast-growing segments aligns well with Mizuho’s top-pick criteria, even as general sector sentiment softens.
Analysts expect BellRing to outperform the broader sector in volume and revenue growth, with the valuation adjustment offering a more compelling entry point. Mizuho’s maintained Outperform rating indicates sustained confidence in BellRing’s business model amidst evolving market valuations.
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