13 Best Defensive Stocks to Invest in According to Analysts

9. McCormick & Company Inc. (NYSE:MKC)

Beta: 0.66

Dividend Yield: 2.6%

Potential Upside: 18%

Number of Hedge Fund Holders: 42

McCormick & Company Inc. (NYSE:MKC) is one of the best defensive stocks to invest in according to analysts. In its Q2 2025 results report at the end of June, the company highlighted headwinds from tariff costs over FY 2025, which it plans to offset through adjustments in sourcing of materials, pricing, and cost discipline.

However, pricing seems to be slightly less elastic for the company, and most of the revenue growth appears to be coming from higher volumes, as pricing has declined for the last three quarters, while it contributed only 0.3% towards the organic sales growth of 1.6% in Q2.

McCormick’s share price has already lost around 8% YTD, and the market appears cautious on the consumption trends. In a note dated July 29, Stifel Nicolaus analyst Matthew Smith revised his outlook on the company and lowered the price target from $82 to $76 while maintaining a Hold rating. Smith expressed a cautious stance ahead of the second-quarter earnings season, particularly for food sector stocks under his coverage.

The analyst pointed to ongoing softness in consumer demand that persisted through the second quarter, contributing to a more conservative view on the group’s performance. For 2025, Stifel projects only about 1% organic sales growth across its food and beverage coverage universe, alongside an average EPS decline of 15%. Given these subdued expectations, the analyst advised investors to take a selective approach when considering exposure to the food sector.

McCormick & Company Inc. (NYSE:MKC) manufactures and markets spices, seasoning mixes, condiments, flavour solutions, and other products to the food industry.