In this article, we will list the 5 Best Defensive Stocks to Buy Amid Geopolitical Tensions. Please visit 8 Best Defensive Stocks to Buy Amid Geopolitical Tensions if you would like to see the extended list and the methodology behind it.
5. Laureate Education, Inc. (NASDAQ:LAUR)
Stock Upside Potential: 24.37%
Short Float: 4.13%
Number of Hedge Fund Holders: 31
Laureate Education, Inc. (NASDAQ:LAUR) is one of the best defensive stocks to buy amid geopolitical tensions. On May 21, Laureate Education Inc. (NASDAQ:LAUR) strengthened its leadership team by electing Julian Coulter as an independent member of the Board of Directors.
Coulter joins the board with a strong combination of marketing leadership, digital expertise, and operating experience, expected to help drive growth and create meaningful long-term shareholder value. Her critical skills and expertise in technological and commercial innovation should benefit Laureate Education during an era of accelerated digital adoption.
The strengthening of the board comes on the heels of a solid first quarter, during which new enrollments rose 9%, and total enrollments rose 6%. Consequently, the company delivered a 15% increase in revenue at $272.6 million. However, the company posted a wider-than-expected net loss of $21.6 million, compared with $19.6 million in the same quarter last year.
Laureate Education, Inc. (NASDAQ:LAUR) operates a global network of higher education institutions, primarily focusing on campus-based and online undergraduate, graduate, and specialized degree programs.
4. Dollar General Corporation (NYSE:DG)
Stock Upside Potential: 33.44%
Short Float: 3.77%
Number of Hedge Fund Holders: 47
Dollar General Corporation (NYSE:DG) is one of the best defensive stocks to buy amid geopolitical tensions. On June 2, Telsey Advisory Group reiterated a Market Perform rating on Dollar General Corporation (NYSE:DG) and a $140 price target, following impressive first-quarter 2026 results.
Total sales in the quarter were up 3.4% year over year to $10.8 billion, as comparable sales increased 2%, in line with expectations. Revenue increased, driven by positive sales contributions from new stores, partially offset by the impact of stores closed.
Net income was up 13.3% to $444.1 million compared to $391.9 million delivered in the same quarter last year. Similarly, earnings per share came in at $2, better than the $1.89 analysts were expecting and up 12.4% year over year. Gross margin improved by 65 basis points to 31.6% at the back of higher markups and lower shrinkage and damage.
Following the impressive first-quarter results, the Board of Directors has approved a quarterly cash dividend of $0.59, payable on July 21 to shareholders of record on July 7.
Dollar General Corporation (NYSE:DG) is a large discount retailer that offers convenient neighborhood shopping for everyday essentials. Operating over 20,000 stores primarily in the United States, it caters largely to budget-conscious consumers by offering affordable food, household goods, apparel, and health and beauty products.
3. US Foods Holding Corp. (NYSE:USFD)
Stock Upside Potential: 26.30%
Short Float: 3.64%
Number of Hedge Fund Holders: 52
US Foods Holding Corp. (NYSE:USFD) is one of the best defensive stocks to buy amid geopolitical tensions. On June 1, Piper Sandler reiterated a Neutral rating on US Foods Holding Corp. (NYSE:USFD) and lowered the price target to $88 from $103.
The price target cut comes amid concerns that the retailer will feel the brunt of weak traffic in the chain-restaurant industry. Consequently, the research firm has reduced its organic case growth estimate while also increasing its discount rate assumption to 8.75% from 8.25% to align with distribution peers.
Amid the concerns, US Foods accelerated its year-over-year independent restaurant case growth in the first quarter as it also gained share with its target customer types. The company also posted a 15% adjusted diluted earnings per share growth of $0.78 amid a deteriorating macro environment. Net sales in the quarter were also up by 2.8% to $9.6 billion.
For the full year, US Foods is projecting net sales growth of 4% to 6%, with adjusted EBITDA growth of 9% to 13%. Earnings per share are also expected to grow by between 18% and 24%.
US Foods Holding Corp. (NYSE:USFD) is a massive food service distributor that supplies food and kitchen essentials to approximately 250,000 locations, including independent restaurants, healthcare facilities, hotels, and educational institutions.
2. Walmart Inc. (NASDAQ:WMT)
Stock Upside Potential: 24.02%
Short Float: 1.86%
Number of Hedge Fund Holders: 99
Walmart Inc. (NASDAQ:WMT) is one of the best defensive stocks to buy amid geopolitical tensions. On June 3, Walmart Inc. (NASDAQ:WMT) took an important step toward enhancing supply chain efficiency across its network to enable Everyday Low Prices for customers.
The company unveiled the Prepaid Consolidation service, which allows suppliers to send products under a single national purchase order to a designated location. In return, the retailer is to merge the inventory before distributing it across its US distribution network. Consolidation of inventories is part of an effort that seeks to enhance transportation efficiency by combining shipments from various suppliers.
Prepaid Consolidation is poised to expand Walmart’s first-mile services for prepaid suppliers without changing freight terms. There will be no additional markups by third-party logistics providers for services provided. The new program should reduce shipment costs while also enhancing the delivery of goods to store shelves.
Walmart Inc. (NASDAQ:WMT) is a multinational retail corporation that operates a massive chain of hypermarkets, discount department stores, and grocery stores. It functions as an omnichannel retailer, allowing customers to shop in physical stores, through e-commerce websites, and via mobile apps for delivery or curbside pickup.
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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