In this article, we will look at the 10 Consumer Defensive Stocks With More Than 50% Upside.
On October 18, Michel Lerner, head of UBS’ division HOLT, appeared on CNBC to talk about the stock market. Discussing where to find solid valuations in the market, he noted that focusing solely on buying valuation is not a suitable tactic, as value stocks tend to perform well during a bull run with a strong economic cycle. Therefore, looking at just value means taking on a lot of inherent risk in a backdrop still featuring considerable economic uncertainty.
According to Lerner, the more interesting aspect right now is looking at the quality end of the market, such as the sleepier defensive stocks. These stocks don’t necessarily have the growth stories that industrials or tech sectors have had, but the underperformance the market has seen of these stocks, particularly in Europe, very much mimics what we saw in the dot com.
READ ALSO: 14 Stocks Under $5 with Highest Upside Potential and 12 Most Undervalued Small Cap Stocks to Invest In Now.
Right now, he stated, they have added headwinds, such as problems with their profitability and growth. What’s interesting to Lerner today is that these names, including consumer staples, healthcare, and luxury, particularly in Europe, are now getting valuations that are no longer at a premium for the quality that they otherwise have. He added that the earnings show that there are some names where the earnings pressures are starting to recede, which is, at a minimum, a good hedge in what has otherwise been a risk-on environment.
With these trends in view, let’s look at the best consumer defensive stocks with more than 50% upside.
Our Methodology
We used Finviz to compile a list of best consumer defensive stocks with more than 50% upside and selected the top 10 with the highest analyst upside potential. We also added the number of hedge fund holders as of Q2 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of analyst upside.
Note: All data was recorded on October 31.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Consumer Defensive Stocks With More Than 50% Upside
10. JBS N.V. (NYSE:JBS)
Analyst Upside: 51.40%
Number of Hedge Fund Holders: 38
JBS N.V. (NYSE:JBS) is one of the best consumer defensive stocks with more than 50% upside. On October 28, Bank of America Securities analyst Isabella Simonato reiterated a Buy rating on JBS N.V. (NYSE:JBS), setting a $20 price target.
JBS N.V. (NYSE:JBS) also received a rating update from BofA on October 16, with the firm lowering its price target on the stock to $20 from $21 while keeping a Buy rating on the shares.
The firm told investors that with China closed for Brazilian chicken, it is reducing its 2025 and 2026 EBITDA estimates by around 3% each. It is also lowering its EPS forecasts by 9% and 8%, respectively, primarily on lower short-term margins at Seara.
In addition, JPMorgan analyst Lucas Ferreira slashed the price target on JBS N.V. (NYSE:JBS) to $20 from $21 on October 14 while keeping an Overweight rating on the stock.
The firm stated that it sees the US chicken margin to be challenging for JBS N.V. (NYSE:JBS) in the near term after the 23.5% price drop from the recent peak. While it expects prices to drop after summer, better mortality and placements show that the industry is pumping higher-than-expected supply.
JBS N.V. (NYSE:JBS) is a food company that sells pork, beef, lamb meat, and poultry products. The company offers its products to club stores, supermarkets, other retail distributors, and foodservice companies.
9. BioHarvest Sciences Inc. (NASDAQ:BHST)
Analyst Upside: 51.52%
Number of Hedge Fund Holders: N//A
BioHarvest Sciences Inc. (NASDAQ:BHST) is one of the best consumer defensive stocks with more than 50% upside. On October 30, BioHarvest Sciences Inc. (NASDAQ:BHST) announced a strategic CDMO agreement with Saffron Tech for the development and commercialization of saffron-derived botanical compounds by employing BioHarvest’s patented Botanical Synthesis platform, which allows “consistent, scalable, and cost-effective production of plant-based molecules without growing the plant itself”. Saffron Tech pioneers “advanced cultivation methods” for saffron, which is one of the most valued and health-promoting botanicals in the world.
According to the terms of the agreement, 75% of the developed saffron compositions, ownership IP, and commercial associated rights would be owned by Saffron Tech, while the remaining 25% will be held by BioHarvest Sciences Inc. (NASDAQ:BHST).
BioHarvest Sciences Inc. (NASDAQ:BHST) also announced that it aims to manufacture the compound at large scale upon the completion of the composition’s development phases, while also marketing it in its direct-to-consumer e-commerce business through the development of “a line of nutraceutical products leveraging saffron’s functional benefits”, including eye health, cognitive functions, and antioxidant benefits.
BioHarvest Sciences Inc. (NASDAQ:BHST) offers nutraceutical health and wellness products, including dietary supplements.
8. MGP Ingredients, Inc. (NASDAQ:MGPI)
Analyst Upside: 53.32%
Number of Hedge Fund Holders: 26
MGP Ingredients, Inc. (NASDAQ:MGPI) is one of the best consumer defensive stocks with more than 50% upside. MGP Ingredients, Inc. (NASDAQ:MGPI) received a rating update from TD Cowen analyst Robert Moskow, who reiterated a Hold rating on the stock while lowering the price target to $27 from $30.
The analyst based the downward revision on the company’s current market position. He stated that while MGP Ingredients, Inc.’s (NASDAQ:MGPI) Q3 results surpassed expectations and management raised its 2025 guidance, the outlook for the Branded Spirits segment is continually painting an uncertain picture. According to him, recovery in the segment is critical to bridge the valuation gap with branded peers, as sales in the segment have dropped because of weaknesses in mid and value brands, despite a slight growth in premium sales.
Moskow cited some positive aspects for MGP Ingredients, Inc. (NASDAQ:MGPI), including the appointment of Matias Bentel as Chief Marketing Officer and the strategic reviews being conducted by the new CEO, Julie Francis, to boost the Branded Spirits portfolio. However, he added that despite these steps, the overall uncertainty in the segment calls for a Hold rating.
MGP Ingredients, Inc. (NASDAQ:MGPI) manufactures and trades food, beverages, starch food ingredients, and specialty wheat protein. The company’s operations are divided into the following segments: Distilling Solutions, Branded Spirits, and Ingredient Solutions.
7. Nomad Foods Limited (NYSE:NOMD)
Analyst Upside: 53.61%
Number of Hedge Fund Holders: 24
Nomad Foods Limited (NYSE:NOMD) is one of the best consumer defensive stocks with more than 50% upside. Nomad Foods Limited (NYSE:NOMD) announced on October 30 that its Board of Directors declared a cash dividend of $0.17 per share, reflecting a 13% increase compared to the prior year’s quarterly dividend. The dividend will be payable on November 26, 2025, to shareholders of record as of the close of business on November 10, 2025.
Previously, on October 10, Scott Marks CFA from Jefferies reiterated a Buy rating on Nomad Foods (NYSE:NOMD) and cut his price target to $17 from $21. Additionally, Andrew Lazar from Barclays maintained his Buy rating but cut his price target to $15 from $18 on the same day.
Nomad Foods Limited (NYSE:NOMD) is expected to report earnings for FQ3 2025 on November 6, and analysts polled by Seeking Alpha are expecting $0.55 in earnings per share on revenue of $884.96 million. Six analysts have cut their EPS estimates over the past 90 days.
Despite the downward revisions, analysts’ consensus price target of $17.4 point to a 54% upside from current levels.
Nomad Foods Limited (NYSE:NOMD) is a frozen food company. Its portfolio includes pizza, poultry, meat, fish, vegetables, and ice cream. The company sells its items under the Birds Eye, Ledo, Frikom, iglo, and Findus brands. It sells, manufactures, and distributes its products in over 16 European countries.
6. Primo Brands Corporation (NYSE:PRMB)
Analyst Upside: 60.40%
Number of Hedge Fund Holders: 72
Primo Brands Corporation (NYSE:PRMB) is one of the best consumer defensive stocks with more than 50% upside. JP Morgan slashed its price target on Primo Brands Corporation (NYSE:PRMB) to $35 from $37 while maintaining an Overweight rating on the shares. The firm told investors that the rating update came as part of a Q3 earnings preview.
Similarly, Mizuho also lowered the price target on Primo Brands Corporation (NYSE:PRMB) to $35 from $40 on October 28, keeping an Outperform rating on the shares.
In addition, Primo Brands Corporation (NYSE:PRMB) was initiated with a Hold rating by Jefferies on October 17, who set a $23 price target. The firm told investors that the company “sits at the intersection of scale and structural growth.”
It added that while Primo Brands Corporation (NYSE:PRMB) boasts strong longer term fundamentals, the company’s near-term visibility is limited by its integration complexity. According to the firm, execution proof points are necessary for the shares to re-rate.
Baron Discovery Fund also discussed Primo Brands Corporation (NYSE:PRMB) in its third quarter 2025 investor letter, stating:
“During the quarter, we established a new position in Primo Brands Corporation (NYSE:PRMB). Primo Brands owns the leading bottled spring water brands and the nation’s largest home and office water delivery service. The company was formed through the November 2024 combination of Primo Water and Blue Triton Brands. Primo Brands is fully vertically integrated. It owns or leases water supply (springs and municipal water sources), treats the water, bottles it, transports it to hubs, and distributes it last-mile to retail or the home. Primo Brands goes to market with 13 different brands. It has 7 brands that are over 100 years old, and 4 that date back to the 1800s. Primo Brands also owns high growth premium brands such as Saratoga and Mountain Valley Springs.
We think the stock is attractive for several reasons. First, the company benefits from strong barriers to entry. In the retail channel, brand recognition, distribution capability, and scale are the principal competitive advantages that have led to Primo Brands’ number one market share position in the water category, ahead of large beverage companies such as Coca-Cola and PepsiCo. In home and office delivery, Primo Brands has unrivaled route density that results in powerful local economies of scale and protects its 70%-plus market share. Second, there are tailwinds driving growth in water consumption. Consumers are becoming more health conscious and are trading sugary soft drinks for water. The aging municipal water infrastructure in the U.S. is also leading more people to seek out high-quality spring and purified water…” (Click here to read the full text)
Primo Brands Corporation (NYSE:PRMB) is a branded beverage company with a focus on healthy hydration. The company delivers domestically and sustainably sourced diversified offerings across formats, products, channels, consumer occasions, and price points, distributed in Canada and the US. It also provides water filtration units for business and home consumers across North America.
5. Udemy, Inc. (NASDAQ:UDMY)
Analyst Upside: 76.06%
Number of Hedge Fund Holders: 23
Udemy, Inc. (NASDAQ:UDMY) is one of the best consumer defensive stocks with more than 50% upside. On October 30, Needham analyst Ryan MacDonald maintained a Buy rating on Udemy, Inc. (NASDAQ:UDMY) with an $11 price target, basing the optimistic outlook on the company’s solid Q3 adjusted EBITDA performance and revenue.
Attributing the positive results to the company’s focus on improving its consumer subscription business, the analyst stated that Udemy, Inc. (NASDAQ:UDMY) is undergoing a strategic business model shift towards subscription-based revenue. While he expects this to slow consumer segment growth in H1 2026, the expected growth in subscription revenues in H2 2026 is anticipated to exceed the drop in transaction revenues, presenting a strong case for the company’s long-term success.
Udemy, Inc. (NASDAQ:UDMY) is a global learning company with an online platform for skill acquisition, validation, and development. It operates in two segments: Consumer and Enterprise. The Consumer segment targets individual learners, helping them attain valuable job skills and hands-on learning to excel in their professional careers. The Enterprise segment focuses on businesses and government customers, allowing them to reskill and upskill their public servants and employees.
4. KinderCare Learning Companies (NYSE:KLC)
Analyst Upside: 77.46%
Number of Hedge Fund Holders: 9
KinderCare Learning Companies (NYSE:KLC) is one of the best consumer defensive stocks with more than 50% upside. KinderCare Learning Companies (NYSE:KLC) received a rating update from Morgan Stanley analyst Toni Kaplan on October 24, who slashed the price target on the stock to $11 from $14 while keeping an Overweight rating on the shares.
The analyst told investors in a preview for its group coverage on daycare that the firm anticipates enrollment to be the primary focus again in Q3 in a year where enrollment has been “largely overwhelmed.”
Kaplan added that KinderCare Learning Companies (NYSE:KLC) is currently undervalued and is trading at a considerable discount compared to its peers. While key metrics such as pricing and enrollment growth have underperformed, the firm sees potential for their stabilization despite the anticipated seasonal drop in occupancy during fiscal Q3.
In addition, KinderCare Learning Companies (NYSE:KLC) was downgraded to Neutral from Buy by Goldman Sachs analyst George Tong on October 15. The analyst also slashed the price target on the stock to $6 from 20, stating that the stock’s upside is anticipated to be limited due to slowing revenue growth and declining child care center occupancy rates.
Tong further stated that KinderCare’s (NYSE:KLC) remediation efforts are “likely complex and protracted in nature” because the company’s occupancy declines are attributable to local market dynamics instead of a single factor.
KinderCare Learning Companies (NYSE:KLC) provides community-based early childhood education centers, with programs ranging from infant, toddler, and preschool to kindergarten and before- and after- school programs. The company has operations under the KinderCare brand.
3. Stride, Inc. (NYSE:LRN)
Analyst Upside: 78.44%
Number of Hedge Fund Holders: 41
Stride, Inc. (NYSE:LRN) is one of the best consumer defensive stocks with more than 50% upside. On October 29, Morgan Stanley slashed the price target on Stride, Inc. (NYSE:LRN) to $130 from $159 while keeping an Equal Weight rating on the shares.
The rating update came after Stride, Inc. (NYSE:LRN) reported its fiscal Q1 2026 results on October 28, and the firm told investors that while the company’s results showed a relatively in-line quarter, it expects its enrollment throughout the 2025-2026 school year to be disrupted by headwinds. Morgan Stanley thus lowered its fiscal year 26 revenue and adjusted operating income estimates by 7% and 12%, respectively.
Stride, Inc. (NYSE:LRN) reported $620.9 million in revenue in fiscal Q1 2026, while income from operations reached $69.0 million. Net income for the quarter was $68.8 million, compared with $40.9 million in 2025. Adjusted EBITDA reached $108.4 million, and adjusted earnings per share was $1.52, compared with $1.09 the previous year.
Stride, Inc. (NYSE:LRN) provides an educational platform to deliver online learning to students across the US. It offers various services, including professional skills training, K-12 education, career learning, and talent development.
2. Inter Parfums, Inc. (NASDAQ:IPAR)
Analyst Upside: 82.55%
Number of Hedge Fund Holders: 20
Inter Parfums, Inc. (NASDAQ:IPAR) is one of the best consumer defensive stocks with more than 50% upside. Jefferies lowered the price target on Inter Parfums, Inc. (NASDAQ:IPAR) to $125 from $150 on October 28, but maintained a Buy rating on the stock, reasoning that early reports and alternative data points towards a sequential improvement in the beauty industry in fiscal Q3. Given the cautious sentiments associated with consumer behavior, the analyst anticipates companies in the group to issue “conservative” outlooks.
Inter Parfums, Inc. (NASDAQ:IPAR) announced on October 20 net sales of $430 million in the quarter ending September 30. Jean Madar, Chairman & Chief Executive Officer of Inter Parfums, Inc. (NASDAQ:IPAR), stated that the company attained “a record third quarter with consolidated sales growth of 1% for both the 2025 third quarter and year-to-date periods, supported by ongoing consumer interest in prestige and luxury fragrances”.
He added that retailers are adopting a cautious approach to inventory and consumers are being selective in their spending, which is why growth was more moderate than anticipated. However, management remains encouraged by the overall market’s resilience, along with the company’s portfolio evolution and innovation.
Inter Parfums, Inc. (NASDAQ:IPAR) manufactures, markets, and distributes a range of fragrances and related products. The company’s operations are divided into the United States and European geographical segments.
1. Sprouts Farmers Market, Inc. (NASDAQ:SFM)
Analyst Upside: 89.62%
Number of Hedge Fund Holders: 54
Sprouts Farmers Market, Inc. (NASDAQ:SFM) is one of the best consumer defensive stocks with more than 50% upside. Sprouts Farmers Market, Inc. (NASDAQ:SFM) reported its fiscal Q3 earnings highlights on October 29, with net sales for the quarter totaling $2.2 billion and reflecting a 13% growth from the prior year period. Comparable store sales experienced a 5.9% growth, while diluted earnings per share reached $1.22, compared to $0.91 in the same period last year.
Sprouts Farmers Market, Inc. (NASDAQ:SFM) opened 9 new stores in the quarter, resulting in 464 stores in 24 US states as of September 28.
BMO Capital analyst Kelly Bania maintained a Hold rating on Sprouts Farmers Market, Inc. (NASDAQ:SFM) following the earnings release, reducing the price target on the stock to $90 from $120 on October 30.
The analyst reasoned that the company reported comparable sales growth below expectations, with the Q4 guidance hinting at a further slowdown. Bania added that Sprouts Farmers Market, Inc.’s (NASDAQ:SFM) future comparable sales and margin outlook is steeped in uncertainty, which is supporting the cautious stance along with questions related to the pace of store growth and the necessity of price investments.
Sprouts Farmers Market, Inc. (NASDAQ:SFM) is a specialty natural and organic food retailer that offers a specialty grocery experience. Its products are made of organic, plant-based, gluten-free, and similar lifestyle-friendly ingredients.
While we acknowledge the potential of SFM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SFM and that has 100x upside potential, check out our report about this cheapest AI stock.
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