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.
6. Unilever PLC (NYSE:UL)
Upside potential as of June 15, 2025: 12.69%
Dividend yield: 3.32%
Unilever PLC (NYSE:UL) is facing backlash from its workers in Ivory Coast, who accuse the giant of violating their collective bargaining agreement by refusing to guarantee severance pay in case of layoffs amid the sale of the business in that region.
There is one brand that comes to mind when we think of everyday essentials: Unilever PLC (NYSE:UL). However, it is due to the underperformance of the Ivory Coast unit that British-based Unilever (LON:ULVR) has decided to sell all of its shares to a local investor group led by wholesale distributor Société de Distribution de Toutes Marchandises Côte d’Ivoire (SDTM). If it happens, as many as 160 employees are on the edge of redundancy.
Workers began protesting at Unilever offices in Abidjan on April 2, driven by fears regarding the potential layoffs. However, the management reported that the transaction was merely a way of selling shares and would not result in the termination of contracts, citing severance pay as irrelevant.
Unilever PLC (NYSE:UL) is a fast-moving consumer goods (FMCG) company based in the United Kingdom. With five main segments, namely Beauty & Wellbeing, Personal Care, Home Care, Foods, and Ice Cream, the company is focused on adding vitality to life. Founded in 1860, the company provides its products under various brand names, like AXE, Ben & Jerry’s, Dove, Hellmann’s, Horlicks, and Knorr.
5. Novo Nordisk A/S (NYSE:NVO)
Upside potential as of June 15, 2025: 15.63%
Dividend yield: 2.02%
Novo Nordisk A/S (NYSE:NVO) has reclaimed its crown as Europe’s most valuable publicly traded company, surpassing German software giant SAP SE (ETR:SAPG). With a market capitalization of $355.904 billion, the giant’s stock surged by nearly 10% in the last five days.
Two major developments have taken place in recent days. Firstly, Novo Nordisk A/S (NYSE:NVO) has revealed its plan to advance its amycretin treatments into Phase 3 clinical trials for weight management. By the first quarter of 2026, the company expects to launch a Phase 3 development program for amycretin aimed at overweight or obese adults.
Secondly, the Financial Times reported that activist hedge fund Parvus Asset Management has purchased shares of the company, which further boosted investor confidence. Moves like these signal that Novo Nordisk A/S (NYSE:NVO) is truly a leader in the market.
Novo Nordisk A/S (NYSE:NVO) is a Denmark-based company that engages in the research and development, manufacture, and commercialization of pharmaceutical products. Founded in 1923, it has two main segments: Diabetes and Obesity Care, and Rare Diseases.
4. Turning Point Brands, Inc. (NYSE:TPB)
Upside potential as of June 15, 2025: 19.87%
Dividend yield: 0.40%
Graham Purdy, President and CEO of Turning Point Brands, Inc. (NYSE:TPB), sold 21,400 shares worth $1,602,646. This 8.6% reduction in stake means that 227,466 shares of this class are now owned.
Just recently, Brittani Cushman, Senior Vice President and General Counsel at Turning Point Brands, Inc. (NYSE:TPB), also sold 15,000 shares in two days at prices between $74.36 and $75.89 per share. This transaction of approximately $1.13 million comes as a result of healthy returns of nearly 136% in the past year.
These transactions are a part of the ongoing management strategy of the equity holdings in response to the company’s impressive performance in the recent quarter. Turning Point Brands, Inc. (NYSE:TPB) reported strong financial results that not only surpassed revenue estimates but also earnings forecasts.
Turning Point Brands, Inc. (NYSE:TPB) is a Kentucky-based company that produces and distributes branded consumer products across the United States and Canada. Founded in 1988, the company delivers its products to wholesale distributors and retail merchants. With two main segments: Zig-Zag Products and Stoker’s Products, the giant lives by the principles of accountability and integrity.
3. The Andersons, Inc. (NASDAQ:ANDE)
Upside potential as of June 15, 2025: 27.97%
Dividend yield: 2.14%
The much-awaited Stephens Meeting, scheduled for June 17 in New York, will feature The Andersons, Inc. (NASDAQ:ANDE) among other topics. This meeting is a perfect opportunity for investors to gain insights into the company’s performance and strategic vision.
Just last month, The Andersons, Inc. (NASDAQ:ANDE) participated in the 2025 BMO Farm to Market, where the executive leadership analyzed the company’s strong growth trajectory and corporate strategies. The giant’s focus remains on advancing its asset-light model and expanding its renewable business. Events like these undoubtedly enable shareholders to make more informed decisions.
While everyone is now on board with tariffs, they try their best to avoid the stocks most vulnerable to the tariff plan in any way possible. Among such defensive players is The Andersons, Inc. (NASDAQ:ANDE). It is no news that the company outperformed the market during the inflation spike between 2021 and 2022. This resilience in challenging conditions, marked by extreme fluctuations in commodity prices, makes ANDE a strong defensive player.
The Andersons, Inc. (NASDAQ:ANDE) is a North American agriculture company. With three main segments: Trade, Renewables, and Nutrient and Industrial, the company operates in the commodity merchandising, renewables, and plant nutrient sectors. Founded in 1947, the company aims to provide extraordinary service to customers.
2. Newell Brands Inc. (NASDAQ:NWL)
Upside potential as of June 15, 2025: 34.92%
Dividend yield: 5.34%
Analysts at JPMorgan raised the price target for Newell Brands Inc. (NASDAQ:NWL) to $7.00 from $6.00, while upgrading the stock from Neutral to Overweight. This was after the consumer goods giant showed signs of a strong rebound stemming from accelerated innovation speed, strengthened ties with major retailers, and even further prospects for growth.
Despite the tariff drama, Newell Brands Inc. (NASDAQ:NWL) is exhibiting improved operating income and productivity from restructuring. The firm underscored the company’s manufacturing footprint as a competitive edge, with around fifteen U.S. facilities and two Mexican plants.
JPMorgan pointed out that the company exhibits tariff advantage in around 19 product categories, in contrast to its peers, who mainly source from outside. Since Newell Brands Inc. (NASDAQ:NWL) offers both branded rivals and private label products, this advantage means the company would be well-positioned in the market.
Newell Brands Inc. (NASDAQ:NWL) is a Georgia-based company that develops, produces, and markets consumer and commercial products globally. Founded in 1903, the company has three main segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation. With a focus on innovation and consumer needs, the company is dedicated to lighting up every moment for its customers.
1. Spectrum Brands Holdings, Inc. (NYSE:SPB)
Upside potential as of June 15, 2025: 61.56%
Dividend yield: 3.63%
On Wednesday, Spectrum Brands Holdings, Inc. (NYSE:SPB) reached a 52-week low, declining to $54.54. Analysts believe that the stock is undervalued at its current levels, making it a valuable stock.
With the company being loud on one thing: it will not chase short-term revenue at the expense of its robust financial position, we can expect it to have promising opportunities ahead. One strategy that Spectrum Brands Holdings, Inc. (NYSE:SPB) is holding onto is new product development (NPD) to drive future growth. Investments in innovations are expanding core categories and boosting sales and new adjacencies. The company considers buying assets at a better price as the silver lining in this macro environment, making M&A initiatives highly likely.
The COVID era speaks volumes about the performance of the company. During the peak lockdown period, Spectrum Brands Holdings, Inc. (NYSE:SPB) grew by more than 23% in 2020, in contrast to the broader market, which grew by around 17%. Thus, in similar circumstances, SPB has a high chance of outperforming its peers when there is demand uncertainty. This is supported by the one-year price guidance of $83.57 by Yahoo Finance, implying an upside of nearly 61%.
Spectrum Brands Holdings, Inc. (NYSE:SPB), headquartered in Wisconsin, United States, is a diversified consumer products and home essentials company. The core offerings of the company include pet products, personal care items, small household appliances, and home pest control solutions. From North America and Europe to Asia Pacific and the Middle East, SPB has a powerful industry presence.
While we acknowledge the potential of SPB 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 SPB and that has 100x upside potential, check out our report about this cheapest AI stock.
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