In this article, we will be taking a look at the 13 Best Bear Market Stocks to Buy Right Now.
The protection against economic unpredictability is what investors care about most in this erratic market. Defensive stocks exist because nobody wants to be exposed to market risks.
Defensive stocks are, by definition, those that outperform the market while the market is declining. The fact that these companies are dividend-paying and come from industries like utilities, healthcare, or consumer staples unites them.
Michael Wilson, Morgan Stanley’s Chief U.S. Equity Strategist, is one of the most outspoken proponents of defensive stocks during a bear market. As he states,
“Until … the bond market starts to believe the Fed is no longer behind the curve … it will be difficult for equity markets to trade with a more risk-on tone … quality + defensive equities should continue to show outperformance.”
Wilson thinks it’s sensible to switch to traditionally conservative stocks in light of the economic downturn and tariff worries.
With this in mind, let’s dive in and take a look at the best bear market stocks to buy right now.
Our Methodology
For our methodology, we used a stock analysis screener to identify consumer defensive stocks with a price target upside of less than 15%. From this filtered list, we selected 13 stocks and ranked them in ascending order based on the total number of hedge fund holders as of Q2 2025, according to data from the Insider Monkey 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).
Here is our list of the 13 best bear market stocks to buy right now.
13. Beyond Meat, Inc. (NASDAQ:BYND)
Number of Hedge Fund Holders: 10
Beyond Meat, Inc. (NASDAQ:BYND), founded in 2009 and headquartered in California, is known for its plant-based protein products, including burgers, sausages, and crumbles. The company’s mission focuses on improving human health and environmental impact through alternatives to animal meat. It stands thirteenth on our list among the best bear market stocks.
In September 2025, the firm reported a 19.6% year-over-year decline in Q2 revenue to $75 million and a net loss of $29.2 million. To address ongoing losses, the company plans to cut 6% of its workforce and accelerate transformation efforts, focusing on margin expansion and streamlined distribution.
As part of its strategic shift, the company introduced Beyond Ground, a four-ingredient plant-based mince offering 27g of protein per serving with no cholesterol, GMOs, soy, or gluten. The product launch supports BYND’s broader rebranding as “Beyond”, reflecting a focus on versatile plant proteins for everyday consumption rather than merely mimicking traditional meats. Beyond Meat, Inc. (NASDAQ:BYND)’s upcoming innovations may include lentil sausages, chickpea hot dogs, and post-workout protein options inspired by ancient nutrition models.
12. BRF S.A. (NYSE:BRFS)
Number of Hedge Fund Holders: 11
BRF S.A. (NYSE:BRFS), a major global producer of poultry, pork, processed foods, and pet food, has strengthened its international presence with a growing focus on alternative proteins and plant-based products.
On September 22, 2025, BRFS merged with Marfrig Global Foods, creating MBRF Global Foods Company S.A. BRFS shareholders received Marfrig shares at 0.8521 ADS per BRF ADS. The merger, approved by Brazil’s antitrust authority without concerns, aims to streamline operations, cut costs, and generate BRL 805 million ($141 million) in annual synergies. Miguel Gularte was named global CEO, while the company’s shares jumped over 18% ahead of the merger, with dividends scheduled for late September.
Despite avian flu and trade volatility, BRF S.A. (NYSE:BRFS) reported 3% revenue growth in Q2 2025 to BRL 15.4 billion. Its pet food segment expanded 8%, and the plant-based division grew 12.5% with new R&D investments. Export diversification added 11 markets, including Argentina and Saudi Arabia, offsetting EU and China challenges.
While leverage remains relatively high at 1.5, merger-driven liquidity improvements have earned positive recognition from rating agencies, positioning MBRF Global Foods for stronger global growth and efficiency.
11. The Beauty Health Company (NASDAQ:SKIN)
Number of Hedge Fund Holders: 13
The Beauty Health Company (NASDAQ:SKIN), a global leader in aesthetic technologies, designs and markets innovative skincare and wellness products. Its flagship HydraFacial system is renowned for cleansing, extraction, and hydration using proprietary serums, while other offerings include Syndeo for personalized treatments, SkinStylus for microneedling, and Keravive for scalp health.
Recent Q2 2025 results exceeded expectations, fueling renewed investor interest. The business reported revenue of $78.2 million and EPS of $0.03, surpassing the forecasted loss of $0.06, with gross margins holding at 62.8%. Analyst optimism grew, with TD Cowen raising its price target from $2.00 to $2.50, citing CEO-led strategic efforts in device sales and consumables innovation. Jefferies and Roth/MKM similarly upgraded their targets, highlighting improved sales and cost management.
A key driver of growth is The Beauty Health Company (NASDAQ:SKIN)’s focus on provider engagement and innovation. Beauty Health recently launched HydraFacial Advisory Councils and an Ambassador Network to gather feedback from clinic partners and ambassadors. This initiative aims to enhance product development and strengthen brand loyalty, with new booster launches expected later this year targeting mid-60s margins at price points of $220–$345. For investors looking at resilience in consumer health and wellness names, SKIN is increasingly discussed among the best bear market stocks given its steady margins and expanding consumables model.
Strategically, the firm continues to expand its consumable and back-bar product lines, with several rollouts planned for Q4 2025. It has also reinforced its convertible notes via a supplemental indenture, clarifying asset rights and reducing risk for creditors.
10. Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX)
Number of Hedge Fund Holders: 18
Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX), a leading Latin American beverage bottler and retail operator, is known for its Oxxo convenience stores and status as the world’s largest Coca-Cola bottler. The company has attracted attention as a strong defensive stock due to strategic expansion and market adaptation amid economic headwinds.
Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX) is accelerating its U.S. retail presence following its late-2024 acquisition of 249 Delek convenience stores for $385 million, which are being rebranded as Oxxo locations. By September 2025, around 40 stores in West Texas will have been converted, featuring expanded product lines including the corporation’s proprietary Andatti coffee. The initiative targets incremental sales growth while modernizing offerings to compete in the Southwest U.S., including Texas, New Mexico, and Arkansas.
In Mexico, FMX has closed 432 underperforming pharmacy stores to focus on profitability, cost control, and operational efficiency amid a sluggish consumer environment and adverse weather. Despite mixed domestic results, overall revenues rose 6.3% last quarter, driven largely by international expansion. The business continues to optimize product assortments, pricing, and overheads to strengthen core markets ahead of year-end.
On September 17, 2025, Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX) appointed José Antonio Fernandez Garza-Laguera as its new CEO to guide its cross-border strategy. Analyst sentiment has improved following positive U.S. store performance and continued international growth.
9. National Beverage Corp. (NASDAQ:FIZZ)
Number of Hedge Fund Holders: 19
National Beverage Corp. (NASDAQ:FIZZ), maker of LaCroix sparkling water, reported strong first-quarter fiscal 2026 results with record net sales of $331 million, slightly above last year’s $329 million, and earnings per share of $0.60 for the quarter ending August 2, 2025. Operating income rose to $71 million, and operating cash flow reached $59 million, boosting cash reserves to $250 million. Growth was driven by improved pricing and product mix, despite a slight decline in case volume. The company highlighted innovation as a key driver, launching four new LaCroix flavors and the “Deliciously Magical” variety pack, which supported strong organic growth, particularly in club channel sales.
Despite these gains, National Beverage Corp. (NASDAQ:FIZZ)’s stock hit a 52-week low near $37 in late September 2025. Rising marketing costs, softer margins, and slower volume growth have pressured near-term performance. Revenue of $330.52 million fell short of analyst expectations of $354.18 million, prompting cautious sentiment. UBS downgraded the stock to a “ Moderate sell” with a $39 price target, citing ongoing margin pressures despite the company’s investments in brand building and product innovation. FIZZ is increasingly discussed among the best bear market stocks due to its strong cash flow and potential for recovery.
From an investment perspective, National Beverage Corp. (NASDAQ:FIZZ) may appeal as a turnaround opportunity. Its strong brand presence, consistent innovation, and solid cash flow position it well to navigate near-term challenges.
8. Ambev S.A. (NYSE:ABEV)
Number of Hedge Fund Holders: 23
Ambev S.A. (NYSE:ABEV), a leading Brazilian beverage company, produces and distributes beer, soft drinks, and ready-to-drink beverages across Brazil, Central America, the Caribbean, Latin America South, and Canada. Known for major beer brands like Skol, Brahma, Antarctica, Budweiser, and Stella Artois, the company operates through a mix of direct distribution networks and third-party distributors.
For Q2 2025, the corporation reported revenue of $3.59 billion, a 2.65% year-over-year increase, though approximately $251 million below analyst expectations. Net income rose 15%, and EBITDA saw high single-digit growth, with margins improving by 110 basis points. Earnings per share matched forecasts at $0.03. Organic volumes fell 4.5% due to cooler weather affecting consumption in key regions.
On the leadership front, Ambev S.A. (NYSE:ABEV) appointed a new Board of Executive Officers on September 1, 2025, naming Carlos Eduardo Klutzenschell Lisboa as CEO and Guilherme Fleury de Figueiredo Ferraz Parolari as CFO. This management refresh aims to strengthen strategic execution and guide the company through sector challenges.
The business also raised its dividend to $0.023 per share, payable in mid-October 2025, up from $0.02, offering a high yield of 6.6% and demonstrating a commitment to shareholder returns despite market headwinds. With solid financial performance, proactive leadership changes, and ongoing focus on growth and profitability, Ambev S.A. (NYSE:ABEV) is positioning itself to navigate short-term challenges while delivering value to investors.
7. Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI)
Number of Hedge Fund Holders: 32
Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) is a discount retail chain specializing in brand-name closeout merchandise, operating 613 stores across 34 Eastern U.S. states. The company’s “treasure hunt” retail model and loyalty program, Ollie’s Army, continue to attract bargain-seeking shoppers, supporting both store growth and customer engagement.
In Q2 fiscal 2025, OLLI’s reported strong results, with net sales of $679.6 million, up 17.5% year-over-year, and comparable store sales rising 5.0%. Net income per diluted share increased by 26.9% to $0.99, surpassing estimates, driven by operational efficiency and effective execution. The corporation opened 29 new stores during the quarter, including expansions into Nebraska, bringing the total to 613 stores, with the 600th store slated for Belmont, NH. Ollie’s Army membership grew 10.6% to over 16.1 million members, while gross margin improved 200 basis points to 39.9% and operating margin rose 80 basis points to 11.3%.
Looking ahead, Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) has raised its fiscal 2025 guidance, projecting net sales of $2.631–$2.644 billion, comparable store sales growth of 3.0–3.5%, and adjusted EPS of $3.76–$3.84. The firm benefits from abundant real estate and inventory opportunities and maintains a strong balance sheet with $460 million in cash and minimal debt, enabling continued store expansion and share buybacks. These qualities make OLLI attractive among the best bear market stocks for investors seeking resilient growth.
Notable insider activity includes the sale of over $14 million in shares by Chairman John Swygert on September 22, 2025, representing a reduction of holdings rather than a full exit. With robust financials, aggressive expansion, and growing customer loyalty, Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI)’s is well-positioned to sustain growth in the competitive discount retail sector.
6. Molson Coors Beverage Company (NYSE:TAP)
Number of Hedge Fund Holders: 37
Molson Coors Beverage Company (NYSE:TAP), a global beer leader known for brands like Coors Light, Miller Lite, and Molson Canadian, is undergoing leadership changes and strategic diversification to navigate challenging market conditions.
Effective October 1, 2025, Rahul Goyal, former Chief Strategy Officer, will become President and CEO, succeeding Gavin Hattersley, who will remain as an advisor through year-end. Goyal’s 24-year tenure includes executive roles in technology, finance, and strategy, as well as leading the company’s push beyond traditional beer into nonalcoholic beverages and energy drinks.
Under Goyal’s “Beyond Beer” strategy, Molson Coors Beverage Company (NYSE:TAP) has expanded its portfolio through partnerships and acquisitions, including collaborations with Coca-Cola on Simply Spiked and Topo Chico Hard Seltzers, and purchases of ZOA energy drinks and Naked Life nonalcoholic cocktails. This approach aims to counter declining beer consumption by diversifying product offerings to align with evolving consumer preferences and health-conscious trends.
Recent results show a 1.6% decline in net sales, driven by softer volumes in the Americas and EMEA regions. The business continues to invest in modernizing North American breweries for efficiency and flexibility while maintaining strong cash flow management, reflecting a disciplined approach to financial health amid market pressures.
5. Stride, Inc. (NYSE:LRN)
Number of Hedge Fund Holders: 41
Stride, Inc. (NYSE:LRN) is an education technology company offering online learning platforms through virtual and blended public schools in the U.S., with a focus on personalized learning and career education programs such as coding bootcamps and apprenticeships.
In September 2025, Stride, Inc. (NYSE:LRN) faced significant legal and regulatory challenges. The Gallup-McKinley County Schools Board of Education filed a complaint alleging fraud, deceptive practices, and systemic violations related to enrollment reporting and student services. The complaint claims Stride inflated enrollment numbers with “ghost students,” used insufficiently licensed teachers, and prioritized profits over compliance and educational quality. The allegations triggered federal securities investigations and caused LRN’s stock to drop approximately 11% in heavy trading.
Shareholder rights firms Hagens Berman and Glancy Prongay & Murray LLP have also launched investigations on behalf of investors, examining whether LRN misled shareholders and adequately disclosed these risks. Despite these setbacks, Stride, Inc. (NYSE:LRN)’s underlying business performance remains strong, making it one of the more resilient picks among the best bear market stocks.
Despite these setbacks, Stride, Inc. (NYSE:LRN)’s underlying business performance remains strong. In Q4 FY25, the company reported 22.4% revenue growth year-over-year and over 20% increase in student enrollments, largely driven by career learning programs. Before the legal developments, the firm’s stock had been on a solid upward trajectory, reflecting consistent growth in the online education market.
4. The Campbell’s Company (NASDAQ:CPB)
Number of Hedge Fund Holders: 43
The Campbell’s Company (NASDAQ:CPB) is navigating rising costs from tariffs on steel and aluminum, which are critical for its canned goods production. Despite efforts to mitigate these expenses through supplier partnerships, alternative sourcing, productivity improvements, and targeted price increases, tariff-related costs are expected to account for about 4% of its cost of goods sold in fiscal 2026. Limited domestic capacity for steel derivatives, particularly tinplate used in canning, forces reliance on imports, constraining the company’s ability to fully offset costs. This is especially challenging for the meals and beverages segment, where selective price hikes may be necessary.
The Campbell’s Company (NASDAQ:CPB) has seen some success with its premium Rao’s pasta sauce brand through collaborations with Italian suppliers, offering flexibility in production locations, including Georgia. However, overall supply chain constraints remain a significant bottleneck. CPB is actively exploring alternative suppliers for tinplate and other imported goods, though transitions require time to maintain product quality and consumer satisfaction.
Financially, the business reported Q4 fiscal 2025 net sales of $2.3 billion, up 1% year-over-year, although organic sales fell 3%. Adjusted earnings per share came in at $0.62, beating estimates by 8.8%. Despite this, the company expects overall earnings before interest and taxes to decline 9–13% for the fiscal year. The Campbell’s Company (NASDAQ:CPB) has also declared a quarterly dividend payable in November 2025, with an annualized yield of 4.6%
3. Sysco Corporation (NYSE:SYY)
Number of Hedge Fund Holders: 45
Sysco Corporation (NYSE:SYY), a leading global foodservice distributor, serves restaurants, healthcare, education, and hospitality sectors across the U.S. and internationally. The company leverages a diversified product portfolio and strategic acquisitions to expand its specialty offerings and geographic reach, positioning it as a resilient player in the bear market environment.
On September 5, 2025, the corporation secured a $3 billion credit facility, replacing its previous revolving credit and extending borrowing capacity through 2030, with an option to increase to $4 billion. This move strengthens financial flexibility and liquidity, enabling disciplined capital allocation and growth investments despite challenges such as labor turnover and soft restaurant traffic, highlighting Sysco as one of the best bear market stocks.
Strategic acquisitions, including Ready Chef and Campbell’s Prime Meat in Scotland, enhance SYY’s distribution network and specialty product offerings, supporting growth in new markets. Innovation initiatives, such as “Sysco To Go” pilot locations and the expansion of SYGMA, further bolster the company’s presence in the evolving food-away-from-home sector.
Financially, Sysco Corporation (NYSE:SYY) demonstrated resilience in Q2 2025, reporting revenue of $21.14 billion, exceeding expectations, with earnings per share of $1.48. The firm also increased its quarterly dividend to $0.54 per share, reflecting confidence in cash flow generation and commitment to shareholder returns amid inflationary pressures.
2. The Estée Lauder Companies Inc. (NYSE:EL)
Number of Hedge Fund Holders: 48
The Estée Lauder Companies Inc. (NYSE:EL), a global leader in prestige beauty, offers a broad portfolio spanning skin care, makeup, and fragrance. The company has accelerated its digital transformation, with online sales reaching a record 31% of total sales in fiscal 2025, up three percentage points from the prior year. Growth is driven by expanded presence in Amazon’s Premium Beauty sections, rising engagement in Southeast Asia via platforms like TikTok and Tmall, and AI-driven retail experiments in China. This digital momentum helps offset declines in travel retail, which fell to 15% of sales in 2025.
In September 2025, The Estée Lauder Companies Inc. (NYSE:EL) launched ARAMIS Intuition, a new men’s fragrance showcased at New York Fashion Week with global ambassador Dwyane Wade, alongside consumer engagement events. The firm is also enhancing innovation capacity with the upcoming appointment of René Lammers, Ph.D., as Chief Research & Innovation Officer in October. This move aims to accelerate science-driven product development and shorten time-to-market, strengthening the brand’s competitive edge amid digital growth trends.
Financially, The Estée Lauder Companies Inc. (NYSE:EL) posted a moderate revenue decline of 11.9% year-over-year in the latest quarter but exceeded earnings expectations with EPS of $0.09 versus $0.07. EL projects fiscal 2026 EPS guidance between $1.90 and $2.10 per share. It continues to deliver shareholder value through dividends, with a recent quarterly payout yielding 1.6%. While global travel retail and broader economic uncertainties remain challenges, digital sales momentum and innovation initiatives provide a strong growth outlook for the company.
1. Monster Beverage Corporation (NASDAQ:MNST)
Number of Hedge Fund Holders: 50
Monster Beverage Corporation (NASDAQ:MNST) tops our list for being one of the best bear market stocks. It is a leading global marketer and distributor of energy drinks, and it reported record-breaking Q2 fiscal 2025 net sales of $2.11 billion in early September, surpassing the $2 billion mark for the first time and exceeding analyst expectations. This growth was driven primarily by the Monster Energy Drinks segment, which saw an 11.2% year-over-year increase to $1.94 billion, reflecting strong demand and effective product innovation.
Domestic sales grew 7% to $1.3 billion, led by products like Monster Energy Ultra Blue Hawaiian, while international sales in Europe, the Middle East, and Africa surged 20% to $474 million. The company’s global expansion continues to be a key growth driver, though higher costs and pricing dynamics have put some pressure on margins.
Monster Beverage Corporation (NASDAQ:MNST) continues to prioritize product innovation, launching new affordable energy brands such as Predator and Fury in multiple markets to sustain consumer interest and expand market share. However, its Alcohol Brands segment experienced an 8.6% sales decline, partially offsetting gains from energy drinks.
Leadership continuity is maintained under CEO Hilton H. Schlosberg, who has guided the company since June 2025 through both growth opportunities and cost challenges.
While we acknowledge the potential of MNST 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 MNST and that has 100x upside potential, check out our report about this cheapest AI stock.
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