8 Best Defensive Stocks to Buy Amid Geopolitical Tensions

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6. The Kroger Co. (NYSE:KR)

Stock Upside Potential: 23%

Short Float: 4.21%

Number of Hedge Fund Holders: 52

Kroger Co. (NYSE:KR) is one of the best defensive stocks to buy amid geopolitical tensions. On June 3, Jefferies reiterated a Buy rating on Kroger Co. (NYSE:KR) but cut the price target to $80 from $82. The price target cut comes amid concerns that the company is paying the price for US Food channels turning negative in the first quarter.

Kroger’s first-quarter volumes worsened as pricing moderated, with inflationary pressure from higher energy prices taking a toll on consumers’ purchasing power. According to the research firm, higher gas prices are increasingly pressuring consumer grocery budgets, with comparable sales now expected to come in at the low end of the company’s guidance.

Nevertheless, Jefferies remains optimistic about Kroger’s long-term outlook, owing to CEO Greg Foran’s renewed focus on value and market share growth. In addition, the retailer is making strides with its new e-commerce model, which further strengthens its long-term outlook.

Reports indicate Kroger intends to cut prices on thousands of items as it seeks to regain market share from competitors. It is part of a strategy that focuses on savings from tighter sourcing and simpler operations.

The Kroger Co. (NYSE:KR) is one of the largest food retailers and supermarket operators in the United States. It operates thousands of grocery stores, pharmacies, and fuel centers, while also manufacturing its own food products and running digital delivery and advertising networks.

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

Click to continue reading and see the 5 Best Defensive Stocks to Buy Amid Geopolitical Tensions.

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