In this article, we will take a look at some of the best bear market stocks to buy according to analysts.
In this volatile market, what matters most to investors is the shield against economic uncertainty. No one wants to be vulnerable to market risks, and that’s what defensive stocks are for.
By definition, defensive stocks are stocks that tend to perform better than the market during periods of market downturn. The common feature among these stocks is that they pay dividends and belong to sectors such as consumer staples, utilities, or healthcare.
One of the most vocal advocates of defensive stocks in the bear market is Michael Wilson, Chief U.S. Equity Strategist at Morgan Stanley. As he says,
“Until … the bond market starts to believe the Fed is no longer behind the curve … it will be difficult for equity markets to trade with a more risk-on tone … quality + defensive equities should continue to show outperformance.”
Wilson believes that shifting to conventionally defensive stocks amid the tariff risks and economic recession is the choice for the wise.
A supermarket shelf overflowing with a variety of fast-moving consumer goods.
Our Methodology
In selecting companies, we have filtered stocks according to the sectors using the Finviz screener. We consider only the consumer defensive stocks that have a record of paying dividends. These stocks are then ranked according to the upside potential, from the lowest to the highest.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
9. British American Tobacco p.l.c. (NYSE:BTI)
Upside potential as of June 15, 2025: 7.72%
Dividend yield: 6.14%
Analysts at Barclays have raised the price target for British American Tobacco p.l.c. (NYSE:BTI) to 4,100 GBp from 3,750 GBp, with an unchanged “Overweight” rating. This confidence in the stock is driven by the nicotine pouches market, anticipated to reach $100 billion by 2035, reflecting a surge of 1150% from the projected $8 billion in 2024.
Even if we look at the past performance exhibited by the company, it has always outperformed the market. While the one-year return of FTSE 100 (^FTSE) stands at 8.41%, British American Tobacco p.l.c. (NYSE:BTI) delivered a return of an impressive 73.16%. Similarly, the company’s five-year returns surpass the general market by 46%.
What’s more exciting is that the Trump administration is increasingly vocalizing against the use of illegal disposable vaping devices, which have garnered around 70% of the market in the U.S. This means more growth for British American Tobacco p.l.c. (NYSE:BTI). As the company continues to diversify its revenue mix into next-generation products, investors have more to be optimistic about.
British American Tobacco p.l.c. (NYSE:BTI) is one of the world’s largest tobacco companies, founded in 1902. This London-based giant offers tobacco and nicotine products in 180 countries. Committed to building a better tomorrow, the company focuses on reducing health impacts by facilitating the transition from cigarettes to smokeless products.
8. The Procter & Gamble Company (NYSE:PG)
Upside potential as of June 15, 2025: 7.86%
Dividend yield: 2.64%
Fort Washington Investment Advisors Inc. OH has increased its stake in The Procter & Gamble Company (NYSE:PG) by 1% during the first quarter. As disclosed to the Securities and Exchange Commission (SEC), the institutional investor acquired an additional 4,493 shares, bringing the total to 464,529 shares of PG.
The strength of The Procter & Gamble Company (NYSE:PG) was also highlighted in a recent interview of Nik Modi, Managing Director and Global Co-Head of Consumer Research at RBC Capital Markets, with BNN Bloomberg to analyse defensive stocks. As he says,
“PG stock is best in class management.”
In a recent development, the two popular brands of The Procter & Gamble Company (NYSE:PG), Olay and Secret, are launching what these summers call for the most: the Summer Fizz Scent collection. This limited-edition range covers serum-infused body washes from Olay and clinical-strength antiperspirants from Secret. Together, they refresh and nourish, and are known to be the “daily dose of paradise.”
We are already aware that strict measures call for increasing pressure to cut costs. Amid the economic uncertainty during Trump’s tenure, Procter & Gamble Company (NYSE:PG) has announced plans to lay off as many as 7,000 workers over the next two years in response to its broad cost-reduction strategy.
The Procter & Gamble Company (NYSE:PG) is an Ohio-based consumer goods company with five main segments: Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care. Founded in 1837, the company has a significant market presence in around 180 countries.
7. Alico, Inc. (NASDAQ:ALCO)
Upside potential as of June 15, 2025: 11.96%
Dividend yield: 0.64%
On Friday, Alico, Inc. (NASDAQ: ALCO) announced a quarterly cash dividend of $0.05 per share for the third quarter of fiscal year 2025, representing a 0.63% dividend yield. This payment will be made to the shareholder on record as of June 27, 2025, with the distribution scheduled for July 11, 2025.
In general, Alico, Inc. (NASDAQ:ALCO) has sustained dividends for the last 21 years, signaling a commitment to shareholder value. The current dividend allocation reinforces this dedication to shareholder returns and ongoing financial strategies.
For many, the company’s plans appear to be a “game changer”. Alico, Inc. (NASDAQ:ALCO) has recently made significant changes to its business model by structuring its land for development purposes and winding down its citrus operations due to environmental concerns and citrus greening disease. For investors, valuing this long-term repurposing, Alico seems to be heading north.
Alico, Inc. (NASDAQ:ALCO), incorporated in 1960, is an agribusiness and land management company. This Florida-based giant has two main segments: Alico Citrus and Land Management & Other Operations. With a commitment to create value for its customers and shareholders, the company produces high-quality agricultural products using environmentally friendly practices.