13 Best Defensive Stocks to Invest in According to Analysts

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1. The Cigna Group (NYSE:CI)

Beta: 0.48

Dividend Yield: 2.3%

Potential Upside: 41%

Number of Hedge Fund Holders: 74

The Cigna Group (NYSE:CI) is one of the best defensive stocks to invest in according to analysts. Cigna shares cracked over 10% on July 31 after the company reported its Q2 2025 quarterly results. Following the results, TD Cowen analyst Charles Rhyee reiterated a Buy rating on Cigna, maintaining a $387 price target. He believes the recent pullback in the shares was overdone and sees current levels as an attractive entry point.

While concerns around performance in the Health Insurance Exchange (HIX) segment weighed on sentiment, Rhyee expects the impact to be limited. He points to strength in other parts of the business, particularly Specialty and Care Services, as well as solid momentum in the company’s Pharmacy Benefit Management (PBM) operations, which should help offset pressures.

Rhyee also noted that management’s Q3 guidance appears cautious, especially considering stepped-up investment in improving patient experience. Still, he remains confident in the company’s earnings outlook, with robust EPS growth projections for 2025 and 2026 supporting his valuation.

The Cigna Group (NYSE:CI) is a health services company that provides medical, pharmacy, behavioural health, dental, and supplemental insurance products.

While we acknowledge the potential of CI as an investment, 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 CI and that has 100x upside potential, check out our report about this cheapest AI stock.

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