In this article, we will list the 5 Undervalued Defensive Stocks for 2026. Please visit 12 Undervalued Defensive Stocks for 2026 if you would like to see the extended list and the methodology behind it.
5. Bunge Global SA (NYSE:BG)
Bunge Global SA (NYSE:BG) is one of the best undervalued defensive stocks for 2026. BofA lifted the price target on Bunge Global SA (NYSE:BG) to $130 from $125 on March 11, reiterating a Buy rating on the shares. The firm told investors that it sees the company’s Investor Day positively, given higher-than-expected midcycle EPS of $13-$15, a rise in the synergy target, as well as the discussion of additional margin-enhancing opportunities as the company leverages the combined platform and tech. BofA added that it thinks of the event as a hurdle that investors had to overcome for fear of a disappointing outlook. It also believes that now that the obstacle has passed, the shares can power even higher.
Bunge Global SA (NYSE:BG) also received a rating update from BMO Capital on March 11. The firm lifted the price target on the stock to $135 from $130, reiterating an Outperform rating on the shares and stating that the company’s investor day presentation was positive as the management laid out a framework to achieve the $15 mid-cycle EPS baseline by 2030. It also told investors in a research note that it has come away with increased confidence in Bunge Global SA’s (NYSE:BG) multi-year earnings trajectory.
Bunge Global SA (NYSE:BG) is a global agribusiness and food company. Its product offerings include canned and frozen vegetables, spices, vegetable oils, wine vinegar, fruit spreads, canned meats and beans, and other items. It sells its products through the brands Mrs. Dash, Ortega, Back to Nature, Bear Creek, Green Giant, and Cream of Wheat.
4. General Mills, Inc. (NYSE:GIS)
General Mills, Inc. (NYSE:GIS) is one of the best undervalued defensive stocks for 2026. RBC Capital cut the price target on General Mills, Inc. (NYSE:GIS) to $55 from $60 on March 19, maintaining an Outperform rating on the shares and telling investors in a research note that the company delivered a mixed quarter with performance affected by weather. However, it added that General Mills, Inc. (NYSE:GIS) maintained fiscal year 2026 guidance as these dynamics are anticipated to reverse in fiscal Q4.
General Mills, Inc. (NYSE:GIS) also received a rating update from TD Cowen on the same day. The firm cut the price target on the stock, bringing it down to $37 from $45 and reaffirming a Hold rating on the shares. It told investors that the company missed fiscal Q3 EPS but maintained guidance, and the inventory headwinds are expected to largely reverse in fiscal Q4. Although management stated that it is finished with price adjustments to improve affordability, TD Cowen lowered estimates for fiscal year 2027 EPS to take into account margin pressure from incentive comp, rising costs, and weak sales, which they are unlikely to offset with price increases, according to the firm.
General Mills, Inc. (NYSE:GIS) manufactures and markets branded consumer foods, including natural and organic food items. The company’s brand portfolio includes Annie’s, Betty Crocker, Cheerios, Wheaties, and more. Its operations are divided into the North America Retail, International, North America Pet, and North America Foodservice segments.
3. Dollar Tree, Inc. (NASDAQ:DLTR)
Dollar Tree, Inc. (NASDAQ:DLTR) is one of the best undervalued defensive stocks for 2026. Truist cut the price target on Dollar Tree, Inc. (NASDAQ:DLTR) to $142 from $156 on March 17 and maintained a Buy rating on the shares. The firm told investors in a research note that it expects trends to continue to improve as the company boosts its store standards, optimizes inventory, increases product value, and the like.
The rating update came after Dollar Tree, Inc. (NASDAQ:DLTR) reported its fiscal Q4 and full year 2025 results on March 16, reporting fiscal Q4 comparable store net sales growth of 5.0% and fiscal Q4 diluted EPS from continuing operations of $2.56. It added that net sales growth in fiscal year 2025 reached 10%, while comparable store net sales growth was 5.3%. In addition, FY25 diluted EPS from continuing operations was $5.94.
Dollar Tree, Inc. (NASDAQ:DLTR) also provided additional business highlights, stating that it opened 402 new stores in fiscal 2025 and converted or added around 2,400 stores to the Dollar Tree 3.0 multi-price format, ending the year with approximately 5,300 multi-price stores.
Dollar Tree, Inc. (NASDAQ:DLTR) operates discount department stores and offers a wide range of merchandise under the business segments Dollar Tree and Family Dollar. Dollar Tree stores offer consumable merchandise, seasonal goods, and variety merchandise. The Family Dollar segment is a general merchandise retail discount store offering affordable merchandise in convenient neighborhood locations.
2. Lamb Weston Holdings, Inc. (NYSE:LW)
Lamb Weston Holdings, Inc. (NYSE:LW) is one of the best undervalued defensive stocks for 2026. BofA cut the price target on Lamb Weston Holdings, Inc. (NYSE:LW) to $49 from $53 on March 13, reiterating a Neutral rating on the shares. The firm told investors that the company is likely to experience increased earnings pressure in the second half as compared to the first half, as well as competitive challenges that are likely to pressure the balance of the year. It further told investors in a research note that these trends hold especially true as Lamb Weston Holdings, Inc. (NYSE:LW) competes against the export markets of China and India.
In a separate development, Lamb Weston Holdings, Inc. (NYSE:LW) announced on March 4 that it will release financial results for fiscal Q3 2026 on April 1, with the news release issued at around 8:30 a.m. ET, and followed by a conference call at 10:00 a.m. ET. The company reported in its fiscal Q2 2026 results that net sales rose $17.2 million to $1.618 billion compared to the prior year period, and included a favorable foreign currency impact of $24.4 million.
Lamb Weston Holdings, Inc. (NYSE:LW) is involved in the production, distribution, and marketing of value-added frozen potato products. The company’s operations are divided into the North America and International segments.
1. Constellation Brands, Inc. (NYSE:STZ)
Constellation Brands, Inc. (NYSE:STZ) is one of the best undervalued defensive stocks for 2026. Constellation Brands, Inc. (NYSE:STZ) received a rating update from Citi on March 18. The firm updated the stock to Buy from Neutral, while raising the price target to $175 from $155. Citi told investors in a research note that beer scanner data has experienced an improvement ahead of the summer season. It added that Constellation Brands, Inc.’s (NYSE:STZ) comparisons remain easy through 2026, with the company cycling through the beer category weakness of last year. The firm also attributed the rating and price target upgrade to the stock’s historically low valuation levels, as well as the company’s improved sales trends.
In a separate development, Constellation Brands, Inc. (NYSE:STZ) announced its CEO succession plan on February 12, stating that its Board of Directors has appointed Nicholas Fink as the company’s next President and Chief Executive Officer, effective April 13, 2026. Fink, who has been a member of the company’s Board of Directors since 2021, is set to succeed current President and CEO Bill Newlands and will continue to serve on the company’s Board.
Constellation Brands, Inc. (NYSE:STZ) produces, markets, and distributes wine, beer, and spirits. It operates through the Beer, Wine, Spirits, Corporate Operations and Other, and Canopy segments.
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