In this article, we will look at the 10 Undervalued Defensive Stocks to Buy According to Analysts.
On August 9, Jeff DeGraaf, chairman of Renaissance Macro, appeared on CNBC’s ‘Power Lunch’ to talk about his perspective on the equity market and more. He said that markets are still in an uptrend and he is still bullish.
He also believes that the year will end higher than where we are today, and that it is just a matter of the next six weeks that are going to be a little choppy.
READ ALSO: 10 Most Profitable NYSE Stocks to Buy Now and 10 Oversold NYSE Stocks to Buy Now.
DeGraaf reasoned that this is because we are not seeing the internal momentum that tells us to really chase stocks, using that weakness to leg into it instead of getting aggressive on chases, particularly on things that have popped around earnings and the like.
With these trends in view, let’s look at the top undervalued defensive stocks to buy according to analysts.
A financial analyst looking through a microscope at stocks to determine their market value.
Our Methodology
We reviewed financial media reports and ETFs to compile an initial list of defensive stocks with a forward P/E below 15 and selected the top 10 stocks with the highest analyst upside potential. We also added the number of hedge fund holders as of Q1 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of analyst upside potential.
Note: All data was recorded on August 9.
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 Undervalued Defensive Stocks to Buy According to Analysts
10. The Hain Celestial Group, Inc. (NASDAQ:HAIN)
Forward P/E: 10.34
Analyst Upside: 22.70%
Number of Hedge Fund Holders: 29
The Hain Celestial Group, Inc. (NASDAQ:HAIN) is one of the best undervalued defensive stocks to buy according to analysts. On July 28, Mizuho lowered the firm’s price target on The Hain Celestial Group, Inc. (NASDAQ:HAIN) to $2.50 from $3, keeping a Neutral rating on the shares.
The firm told investors in a research note that it adjusted targets in the food producer group ahead of the Q2 earnings season. It added that while the low stock valuations in the sector are attractive, they are overshadowed by growth concerns.
The Hain Celestial Group, Inc. (NASDAQ:HAIN) is a prominent US-based company specializing in natural and organic foods, as well as personal-care products.
It operates in over 75 countries, offering various items across snacks, baby products, beverages, meal components, and personal care.
The company’s brand portfolio includes Terra Chips, Garden Veggie Snacks, Garden of Eatin’ snacks, Hartley’s Jelly, Joya and Natumi plant-based beverages, and others.
Its customer base generally includes supermarkets, natural food stores, specialty and natural food distributors, mass-market, and club stores.
9. Ambev S.A. (NYSE:ABEV)
Forward P/E: 12.5
Analyst Upside: 24.56%
Number of Hedge Fund Holders: 21
Ambev S.A. (NYSE:ABEV) is one of the best undervalued defensive stocks to buy according to analysts. In a report released on August 1, Robert Ottenstein from Evercore ISI maintained a Buy rating on Ambev S.A. (NYSE:ABEV), setting a price target of $4.00.
The rating update came after Ambev S.A. (NYSE:ABEV) reported its fiscal Q2 2025 results on July 31, with net revenue (organic) growth of 3.4% and top-line performance driven by net revenue per hectoliter (NR/hl) growth of 8.4%.
Normalized profit for the quarter rose 15.2% to R$2.8327 billion compared to R$2.4591 billion in fiscal Q2 2024. This growth was attributed to lower income tax expenses and EBITDA growth, particularly offset by higher net financial results.
Normalized EBITDA (organic) grew by 7.6% with all of the company’s reporting segments delivering EBITDA growth.
Ambev S.A. (NYSE:ABEV) produces, distributes, and sells beverages. Its offerings include carbonated soft drinks, beer, and other non-alcoholic and non-carbonated products. The company’s operations are divided into the following geographical segments: Brazil, Central America and the Caribbean (CAC), and Canada.
8. Nomad Foods Limited (NYSE:NOMD)
Forward P/E: 7.84
Analyst Upside: 26.93%
Number of Hedge Fund Holders: 27
Nomad Foods Limited (NYSE:NOMD) is one of the best undervalued defensive stocks to buy according to analysts. On August 8, Barclays lowered the firm’s price target on Nomad Foods Limited (NYSE:NOMD) to $18 from $20, keeping an Overweight rating on the shares.
The firm told investors in a research note that Nomad Foods Limited (NYSE:NOMD) lowered its 2025 guidance again due to historically hot weather in Europe.
The firm released the rating after Nomad Foods Limited (NYSE:NOMD) reported its fiscal Q2 2025 earnings on August 6. It reported a 0.8% decline in revenue to €747 million when compared to fiscal Q2 2024.
Organic revenue declined 1.1% with a volume decline of 1.0%, while adjusted gross margin contracted 310 bps. The company also reported an adjusted EBITDA decline of 7.2% to €129 million.
Nomad Foods Limited (NYSE:NOMD) is a frozen food company that sells pizza, poultry, meat, fish, vegetables, and ice cream under the Birds Eye, Ledo, Frikom, iglo, and Findus brands. It manufactures and distributes its products in over 16 European countries.
7. Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF)
Forward P/E: 13.59
Analyst Upside: 29.25%
Number of Hedge Fund Holders: 13
is one of the best undervalued defensive stocks to buy according to analysts. On July 31, Barclays lowered the firm’s price target on Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) to $100 from $105, keeping an Overweight rating on the shares.
The rating update came after Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) reported its fiscal Q2 2025 results on July 23, with a volume decline of 5.5%. Revenue rose 5.0% in the quarter, and 2.4% on a currency-neutral basis. Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) also reported a 5.3% decrease in its majority net income.
Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) produces franchise bottles of trademark beverages. The company’s operations are divided into the Mexico and Central America, and South America segments.
6. Helen of Troy Limited (NASDAQ:HELE)
Forward P/E: 4.82
Analyst Upside: 32.97%
Number of Hedge Fund Holders: 22
Helen of Troy Limited (NASDAQ:HELE) is one of the best undervalued defensive stocks to buy according to analysts. On July 11, UBS lowered the firm’s price target on Helen of Troy Limited (NASDAQ:HELE) to $29 from $32, keeping a Neutral rating on the shares.
The firm told investors in a research note that Helen of Troy Limited (NASDAQ:HELE) reported a Q1 miss and held off on issuing fiscal 2026 guidance again, primarily due to macro uncertainty and tariffs.
It added that conviction in Helen of Troy Limited’s (NASDAQ:HELE) return to earnings growth remains limited.
Helen of Troy Limited (NASDAQ:HELE) is a global consumer products company with an elaborate portfolio of brands, including Curlsmith, OXO, PUR, Hot Tools, Osprey, and more.
5. Newell Brands Inc. (NYSE:NWL)
Forward P/E: 7.18
Analyst Upside: 33.20%
Number of Hedge Fund Holders: 25
Newell Brands Inc. (NYSE:NWL) is one of the best undervalued defensive stocks to buy according to analysts. In a report released on August 1, Andrea Faria Teixeira from J.P. Morgan maintained a Buy rating on Newell Brands Inc. (NYSE:NWL) with a price target of $7.00.
The analyst told investors in a research note that, despite the recent guidance cut, they believe that the worst is possibly behind Newell Brands Inc. (NYSE:NWL) and the current market opportunity presents a buying opportunity.
Teixeira added that Newell Brands Inc. (NYSE:NWL) has exhibited resilience by expanding margins in seven consecutive quarters, driven by a focus on operating expense rationalization and cost-cutting measures.
Newell Brands, Inc. (NYSE:NWL) is a global consumer goods company that manufactures, markets, and sells consumer and commercial products.
Its Home and Commercial Solutions segment offers commercial cleaning and maintenance solutions, hygiene systems, garage and closet organization products, and others.
4. JBS N.V. (NYSE:JBS)
Forward P/E: 7.01
Analyst Upside: 40.17%
Number of Hedge Fund Holders: N/A
JBS N.V. (NYSE:JBS) is one of the best undervalued defensive stocks to buy according to analysts. Mizuho lowered the firm’s price target on JBS N.V. (NYSE:JBS) to $22 from $55 on July 28, keeping an Outperform rating on the shares.
The firm told investors in a research note that it adjusted targets in the food producer group before the Q2 earnings reports.
Mizuho also stated that low stock valuations in the sector are attractive. However, they are overshadowed by growth concerns.
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.
3. Spectrum Brands Holdings, Inc. (NYSE:SPB)
Forward P/E: 13.84
Analyst Upside: 42.02%
Number of Hedge Fund Holders: 32
Spectrum Brands Holdings, Inc. (NYSE:SPB) is one of the best undervalued defensive stocks to buy according to analysts. On August 8, Oppenheimer lowered the firm’s price target on Spectrum Brands Holdings, Inc. (NYSE:SPB) to $95 from $105 while keeping an Outperform rating on the shares.
The firm told investors in a research note that Spectrum Brands Holdings, Inc.’s (NYSE:SPB) Q3 EBITDA of $77M compares to its/Street’s $90M/$81M estimates, attributed to softer demand in HPC and GPC and tariff-related supply constraints.
Oppenheimer also stated that while tariffs and reduced inventory considerably affected Q3, the businesses delivered higher sales rates in July.
The firm added that Spectrum Brands Holdings, Inc. (NYSE:SPB) had mostly removed tariff exposure by the end of Q3 with initial rounds of pricing and supplier concessions.
Spectrum Brands Holdings, Inc. (NYSE:SPB) is a global manufacturer of branded home essentials and consumer products. The company manufactures, sells, and markets its products across Europe, the Middle East and Africa, North America, Latin America, and the Asia-Pacific regions.
2. MGP Ingredients, Inc. (NASDAQ:MGPI)
Forward P/E: 10.61
Analyst Upside: 44.16%
Number of Hedge Fund Holders: 25
MGP Ingredients, Inc. (NASDAQ:MGPI) is one of the best undervalued defensive stocks to buy according to analysts. Analyst Robert Moskow from TD Cowen maintained a Hold rating on MGP Ingredients, Inc. (NASDAQ:MGPI) on August 1, keeping the price target at $30.00.
The analyst told investors in a research note that MGP Ingredients, Inc. (NASDAQ:MGPI) exhibited strong Q2 results that surpassed consensus but aligned with internal expectations.
Management reaffirmed its 2025 guidance, but the forecast still expects a considerable decline in gross profit despite proactive contract negotiations offering better visibility with Brown Goods customers.
Moskow added that Branded Spirits sales have exhibited weakness, especially with the mid and value segments experiencing a considerable decline. He expects this trend to continue, with sales estimated to decline further by 2025.
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.
1. BRF S.A. (NYSE:BRFS)
Forward P/E: 9.37
Analyst Upside: 46.12%
Number of Hedge Fund Holders: 16
BRF S.A. (NYSE:BRFS) is one of the best undervalued defensive stocks to buy according to analysts. On August 7, BRF S.A. (NYSE:BRFS) announced that Standard & Poor’s, a credit rating agency, upgraded the company’s global scale rating from “BB” to “BB+”, with the outlook transitioning from stable to positive.
BRF S.A. (NYSE:BRFS) reported R$15.512 billion in net revenue in fiscal Q1 2025 compared to R$13.378 billion in fiscal Q1 2024, reflecting an increase of 16%. Gross profit for the quarter reached R$4.053 billion compared to R$3.224 billion in the same quarter last year.
The company also reported R$1.2 billion in net income, double that of the same period last year. Adjusted EBITDA rose 30% to R$2.8 billion, marking a record for Q1.
BRF S.A. (NYSE:BRFS) produces and distributes fresh and frozen protein foods. Its operations are divided into the Brazil, International, and Other segments.
The company’s offerings include frozen processed meats, specialty meats, prepared entrees, sliced products, and even products like cream cheese, butter, margarine, sweet specialties, and more.
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