5 Best Defensive Stocks to Buy Amid Geopolitical Tensions

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1. RLX Technology Inc. (NYSE:RLX)

Stock Upside Potential: 21.36%

Short Float: 0.54%

Number of Hedge Fund Holders: 17

RLX Technology Inc. (NYSE:RLX) is one of the best defensive stocks to buy amid geopolitical tensions. On May 20, RLX Technology Inc. (NYSE:RLX) reiterated that it continues to capture emerging-market opportunities as part of its international expansion strategy. Likewise, the company is refining its user-first approach through localized strategies and deeper engagement.

The remarks follow an impressive first quarter, during which revenue increased 96.2% to $229.9 million, driven by aggressive international expansion and the acquisition of an entity in Europe. International business accounted for 72.3% of total revenues. Income from operations was up 187.9% to $45 million as net income increased 41.4% to $51.8 million.

Following an impressive first quarter, RLX Technology remains focused on innovative, user-centric products while also strengthening distribution and retail capabilities. The company also plans to deepen its presence in Europe. Backed by a strong balance sheet of $2.1 billion. Additionally, it remains well-positioned to execute the next phase of growth and accelerate market penetration in Asia and Europe.

RLX Technology Inc. (NYSE:RLX) is a global branded e-vapor (vaping) company. It operates in the tobacco industry within the broader consumer defensive sector. They research, develop, manufacture, and distribute a variety of electronic cigarettes, including rechargeable closed-system pod devices, open-system vape products, and closed-system disposable vapes.

While we acknowledge the potential of RLX 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 RLX and that has 100x upside potential, check out our report about the cheapest AI stock.

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