In this article, we will take a look at the most profitable consumer defensive stocks to buy now.
No matter what the economy looks like, some things never go out of demand. It gets interesting when these everyday household names are among the most profitable opportunities in the market.
Consumer defensive stocks are famous for being sustainable, reliable, and less vulnerable to economic shocks. Such stocks typically belong to companies that provide everyday essentials, from eggs and drinks to personal care products, you name it.
As stated by Nic Sochovsky in a publication titled “The Case for Consumer Staples,”
“Despite an exceptionally turbulent four years, the consumer staples sector has demonstrated resilience, justifying a place in our portfolios.”
Research has long advocated for investing in consumer defensive stocks due to the nature of their businesses and predictable cash flows. As highlighted in a report by Guinness Global Investors, these stocks outperformed the MSCI World Index in all but one instance, surpassing the market average by a meaningful 5.9%. Given this, we will take a look at some of the best consumer defensive stocks to invest in.
Our methodology:
We have compiled a list of the most profitable consumer defensive stocks to buy now. In doing so, we used Finviz stock screener to filter for consumer defensive stocks with an EPS growth of over 15% in the last 3 years and an ROE of at least 5%. The stocks are ranked in ascending order according to the number of hedge fund holdings in them, as data extracted from Insider Monkey’s Q2 2025 database.
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. LifeVantage Corporation (NASDAQ:LFVN)
Number of Hedge Fund holdings: 10
On Thursday, LifeVantage Corporation (NASDAQ:LFVN) announced the completion of its acquisition of LoveBiome, a direct sales company specializing in microbiome care and wellness solutions. The transaction encompasses LoveBiome’s core operating assets related to its microbiome health segment, as well as the retention of key personnel.
By integrating LoveBiome’s P84 product with the company’s top-tier technologies and compensation structure, this takeover enables LifeVantage Corporation (NASDAQ:LFVN) to expand its offerings into the gut health market while solidifying its presence in the United States, Taiwan, and Europe markets.
While LifeVantage Corporation (NASDAQ:LFVN) disappointed with the recent quarter’s results, the company has now positioned itself as a leader in the emerging microbiome health sector through the acquisition. As expressed by Steve Fife, President and CEO of LifeVantage Corporation (NASDAQ:LFVN),
“We are pleased to have closed the LoveBiome acquisition and look forward to working with Kelly Olsen and the LoveBiome team.”
LifeVantage Corporation (NASDAQ:LFVN), headquartered in Lehi, Utah, is a company that provides advanced nutrigenomic activators, dietary supplements, and skin and hair care products, among other products. With a commitment to transforming people’s lives, the company’s core offerings include Protandim, LifeVantage Omega+, and LifeVantage Daily Wellness.
9. Lifeway Foods, Inc. (NASDAQ:LWAY)
Number of Hedge Fund holdings: 12
On Wednesday, Lifeway Foods, Inc. (NASDAQ:LWAY) announced the resignation of Jody Levy from its board of directors, effective immediately. According to a statement in the SEC filing, Levy didn’t resign because of any disagreement with the company’s operations, rules, or policies.
A few days ago, Lifeway Foods, Inc. (NASDAQ:LWAY) signed a multi-faceted agreement with Danone, a French food company. Under the terms, Lifeway will appoint four new directors and split the roles of chair and CEO, currently held by Ms. Smolyansky. Not only that, but both companies have also mutually agreed to pause the litigation between them.
It goes without saying that this collaboration will ease the tensions between the two, as Lifeway Foods, Inc. (NASDAQ:LWAY) will now comply with the shareholder agreement. As stated by Ms. Smolyansky,
This agreement allows us to move forward with clarity and stability, while continuing to focus on what matters most: bringing probiotic-rich foods to more families and creating value for our shareholders.
Lifeway Foods, Inc. (NASDAQ:LWAY) is an Illinois-based producer and marketer of probiotic-based products. Incorporated in 1986, the company offers drinkable kefir, European-style soft cheeses, cream, and other products, and drinkable yogurt, among others.
