In this article, we look at the Top 10 Consumer Defensive Stocks to Buy Now.
Early in the year, the equity markets experienced a strong rotation into consumer defensive stocks. The rotation came as investors questioned the sustainability of high valuations and the momentum of artificial intelligence. The rally helped push the S&P 500 consumer staples index forward price-to-earnings multiple to its highest level since 1999.
After rallying by about 13% through early February, the consumer defensive sector has since pulled back. Cracks in the segment began to appear as the Middle East conflict broke out, prompting concerns of heightened inflation that would erode consumer purchasing power and, consequently, hurt earnings growth. The sector also came under pressure as investors started to question high valuations amid concerns about earnings prospects.
“Rising inflation expectations tied to potential escalation with Iran could begin to undermine the defensive appeal of staples, particularly given how strongly the sector has already performed this year,” said Neil Wilson, investor strategist at Saxo.
Despite a significant pullback from all-time highs, consumer defensive stocks are still up for the year. The S&P 500 consumer staples sector is up about 9% year to date, outpacing the broader S&P 500, which is flat over the same period.
Consumer defensive stocks outlook remains positive, especially on artificial intelligence worries returning to the fore. After years of dominance driven by AI hype and low-rate-fuelled growth, concerns over regulatory scrutiny of AI spending and a normalizing interest rate environment are already prompting investors to pivot into more defensive sectors.
“In this period now where we are living through so much? AI-related uncertainty, including around its potential impact on which companies survive and broader employment, staples have a benefit in investors’ minds because they are not in AI’s path of destruction,” said Erika Maschmeyer, portfolio manager at Columbia Threadneedle.
During periods of uncertainty and market broadening, capital tends to flow from high-growth cyclical to defensive. Consequently, staples have emerged as a soft spot amid broader selloffs. Leading the charge have been consumer defensive companies demonstrating stability and subtle growth drivers.
Our Methodology
To compile a list of the Top 10 Consumer Defensive Stocks to Buy Now, we used the Yahoo Finance Screener and Consumer Defensive ETFs to scan for stocks. We focused on consumer defensive companies with a market cap of more than $20 billion that offer stability during market volatility. We shortlisted stocks with over 10% upside potential (as of April 11) that were also popular among elite hedge funds in Q4 2025. Finally, we ranked the stocks in ascending order based on their upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Top Consumer Defensive Stocks to Buy Now
10. Walmart Inc. (NYSE:WMT)
Stock Upside Potential: 10.14%
Number of Hedge Fund Holders: 114
Walmart Inc. (NYSE:WMT) is one of the top consumer defensive stocks to buy now. On April 2, Erste Group upgraded Walmart Inc. to a Buy from a Hold, impressed by the company’s fourth-quarter performance and guidance.
The company delivered strong revenue growth, up 5.6% to $190.7 billion. The growth was driven by a 24% increase in global commerce sales, while the global advertising business grew 37%. The company also posted earnings per share of $0.74. The giant retailer expects its first-quarter sales to increase by between 3.5% and 4.5%, and its operating income to increase by between 4% and 6%. Adjusted earnings per share are expected at between $0.63 and $0.65.
Erste Group is optimistic that Walmart will exceed its own earnings forecast. The optimism stems from the fact that the company is experiencing growth in consumer transactions, led by digital and broad-based share gains. The company also experienced significant growth in advertising.
On the other hand, Da Davidson expects Walmart to be one of the beneficiaries of a strong tax refund season since 2013. Through March 27, the IRS had received 63 million returns representing over 40% of the 145.9 million filed in 2025.
Walmart Inc. is a massive multinational retail corporation operating a tech-powered omnichannel model across hypermarkets, discount department stores, and grocery stores worldwide. It focuses on providing affordable goods and operates through the Walmart U.S., Walmart International, and Sam’s Club divisions. The company also generates revenue via e-commerce, advertising, and fulfillment services.
9. PepsiCo, Inc. (NASDAQ:PEP)
Stock Upside Potential: 12.08%
Number of Hedge Fund Holders: 74
PepsiCo stock (NASDAQ:PEP) is one of the top consumer defensive stocks to buy now. On April 8, JPMorgan reiterated an Overweight rating on PepsiCo stock (NASDAQ:PEP) but lowered the price target to $172 from $176.
The price target cut is in response to the company maintaining its 2026 organic sales growth at 2.5%, with earnings per share expected at $1.55. On the other hand, the investment bank lowered the company’s organic sales growth to 3.1% from 3.3%, and also lowered the earnings per share estimate to $8.54 from $8.64. The estimate is still above the consensus of $8.60 a share.
Earlier, analysts at BofA Securities reiterated a neutral rating on the stock with a $173 price target. The neutral rating aligns with expectations that the company will deliver first-quarter results in line with consensus estimates. The research firm expects the company to deliver earnings per share of $1.53 and $8.60 for the full year.
PepsiCo, Inc. (NASDAQ:PEP) is a global food and beverage leader that manufactures, markets, and sells iconic snacks (Frito-Lay, Doritos, Cheetos, Lay’s) and beverages (Pepsi, Mountain Dew, Gatorade, Aquafina).
8. The Procter & Gamble Company (NYSE:PG)
Stock Upside Potential: 12.57%
Number of Hedge Fund Holders: 90
The Procter & Gamble Company is one of the top consumer defensive stocks to buy now. On April 8, Piper Sandler reiterated its Neutral rating on The Procter & Gamble Company but cut the price target to $142 from $150.
The research firm maintains a cautious outlook on the stock given its significant exposure to higher resin and oil derivative costs compared to household and personal care peers. Procter & Gamble’s costs remain hedged for 6 to 9 months. Piper Sandler has already trimmed its fiscal third-quarter 2026 earnings per share to $1.55 from $1.58.
Nevertheless, the research firm remains optimistic about the company’s portfolio and brands as it also ramps up innovation. The company’s US category momentum has improved to 2.5% compared to 1%-2% as of the end of last year. However, there are concerns that momentum outside the US could be at risk owing to weakening consumer sentiment. There could also be an outsized risk through 2027 on higher oil costs.
The Procter & Gamble Company is a leading global consumer goods company that develops, manufactures, and markets a wide portfolio of branded household, personal care, and hygiene products. It focuses on improving daily life through trusted brands like Tide, Gillette, Pampers, and Head & Shoulders.
7. Unilever PLC (NYSE:UL)
Stock Upside Potential: 15.02%
Number of Hedge Fund Holders: 28
Unilever PLC (NYSE:UL) is one of the top consumer defensive stocks to buy now. On March 31, Unilever PLC reached an agreement to merge its food business with McCormick. The merger, structured as a Reverse Morris Trust, is to result in a flavor powerhouse that brings together aligned food businesses with strong momentum, superior top-line growth, and enhanced value creation.
The combined company will house iconic brands including McCormick, Knorr, and Hellmann’s, as well as high-growth potential brands with about $20 billion in revenue. The divestment is poised to position Unilever as a leading pure-play HPC company.
Following the divestment of Unilever Food, the company is to shift its focus to beauty, wellbeing, personal care, and home care products. It will also focus on fast-growing geographies and channels through a portfolio of innovative brands.
The divestment also underscores Unilever’s focus on becoming a simpler, sharper, and higher-growth company.
Unilever PLC is a global consumer goods company that produces and sells household products, foods, refreshments, and personal care items. It operates in over 190 countries with popular brands like Dove, Knorr, Hellmann’s, Ben & Jerry’s, and OMO.
6. Sysco Corporation (NYSE:SYY)
Stock Upside Potential: 16.90%
Number of Hedge Fund Holders: 65
Sysco Corporation (NYSE:SYY) is one of the top consumer defensive stocks to buy now. On April 7, Piper Sandler reiterated a Neutral rating on Sysco Corporation but cut the price target to $77 from $83. The price target cut comes on the heels of the company announcing a $29.1 billion deal to acquire Restaurant Depot in a transaction the research firm is not a fan of.
Under the terms of the agreement, Restaurant Depot shareholders are to receive $21.6 billion in cash proceeds and $91.5 million in Sysco shares. Sysco plans to finance the transaction with $21 billion in new and hybrid debt and $1 billion in cash and equity.
The acquisition is poised to expand Sysco’s footprint into the $60- $70 billion Cash and Carry Channel segment of the $380 billion US foodservice market. Sysco expects the transaction to be mid- to high-single-digit EPS accretive in year one and low to mid-teens accretive in year two. In addition, Restaurant Depot is to operate as a separate business segment within Sysco once the acquisition closes.
Sysco Corporation is the global leader in the sale, marketing, and distribution of food products and non-food supplies to restaurants, healthcare/educational facilities, and hospitality businesses. It operates over 300 distribution facilities worldwide, providing comprehensive supply chain solutions.
5. Monster Beverage Corporation (NASDAQ:MNST)
Stock Upside Potential: 19.68%
Number of Hedge Fund Holders: 59
Monster Beverage Corporation (NASDAQ:MNST) is one of the top consumer defensive stocks to buy now. On March 24, analysts at Morgan Stanley reiterated an Overweight rating on Monster Beverage Corporation with a $96 price target. The bullish stance comes on the heels of the stock pulling back by about 15% from its February high.
According to Morgan Stanley, Monster Beverage is well-positioned to deliver 11% long-term organic sales growth above the 9% expected market growth. The growth would not come as a surprise given that the company has delivered 10.7% revenue growth over the past 12 months, backed by an impressive 55.85% gross profit margin in the fourth quarter.
Monster Beverage delivered a 17.6% year-over-year increase in revenue to a record $2.13 billion in Q4 2025, beating consensus estimates by 500 basis points. Amid expected growth, Morgan Stanley has cast doubt on the impact of the Iran conflict on Monster Beverage’s core business. According to the investment bank, the concerns have been blown out of proportion.
Monster Beverage Corporation develops, markets, and distributes energy drinks and alternative beverages, best known for its flagship Monster Energy brand. Operating as a brand owner, it focuses on innovation, marketing, and formulation, outsourcing manufacturing to co-packers and using Coca-Cola’s distribution network.
4. Dollar General Corporation (NYSE:DG)
Stock Upside Potential: 20.53%
Number of Hedge Fund Holders: 57
Dollar General Corporation (NYSE:DG) is one of the top consumer defensive stocks to buy now. On April 2, UBS reiterated a Buy rating on Dollar General Corporation with a $168 price target. The positive stance comes on the heels of a meeting with the company’s CEO, COO, and CFO, which affirmed the company’s outlook.
According to UBS, Dollar General is building momentum ahead of the CEO transition in 2027. For starters, the company is experiencing tailwinds from outperformance in non-consumable categories and is expected to benefit from the acceleration of trade activity that began in 2026. In addition, its real estate activities are contributing to comparable store sales, adding 150 to 200 basis points. Consequently, UBS believes the company is on course to achieve its comparable sales outlook of between 2.25% and 2.75%.
Earlier, BofA Securities also reiterated a Buy rating on Dollar General following a store tour and headquarters visit. According to the research firm, the company is enjoying top-line momentum from remodels, non-consumable growth, and digital and delivery expansion. Consequently, it expects the company to achieve an operating margin target of 6% to 7%.
Dollar General Corporation is a leading American variety-store retailer operating over 20,000 stores in 48 states, focusing on providing convenient, affordable access to household essentials. It sells discounted national and private-brand products, including groceries, cleaning supplies, health & beauty items, and seasonal goods, often serving rural communities.
3. Philip Morris International Inc. (NYSE:PM)
Stock Upside Potential: 22.94%
Number of Hedge Fund Holders: 82
Philip Morris International Inc. (NYSE:PM) is one of the top consumer defensive stocks to buy now. On March 17, Philip Morris International Inc. announced plans to invest $50 million to establish a business solutions center in Tampa, Florida.
The investment underscores a pivotal expansion of US operations as the company also seeks to consolidate key functions and business solutions. The facility is also expected to bolster the company’s distribution operations and customer service. Philip Morris International is also exploring ways to enhance operational efficiency across key functions.
The $50 million investment also underscores Philip Morris International’s commitment to supporting the Florida business community by creating 180 direct and indirect high-skilled jobs. It has committed $600 million to a ZYN nicotine pouch manufacturing facility in Aurora, and it also plans a $232 million expansion of its ZYN production site in Kentucky.
Since 2022, the company has invested more than $1 billion in American manufacturing operational capabilities and people costs.
Philip Morris International Inc. is a leading international consumer goods company transitioning from traditional cigarettes to smoke-free nicotine products. It’s also investing in “heat-not-burn” technology (IQOS), e-vapor (VEEV), and nicotine pouches (ZYN), aiming to generate over two-thirds of revenue from smoke-free products by 2030.
2. Diageo plc (NYSE:DEO)
Stock Upside Potential: 39.45%
Number of Hedge Fund Holders: 30
Diageo plc (NYSE:DEO) is one of the top consumer defensive stocks to buy now. On March 31, Deutsche Bank upgraded Diageo plc (NYSE:DEO) to a Buy from a Hold but cut the price target to £1650 from £1790.
The price target cut coincided with a reset of the company’s profitability prospects. According to the research firm, the company’s profitability is expected to be 11% below consensus in 2027 and 10% below consensus estimates in Fiscal 2028.
According to Deutsche Bank, the British alcoholic beverage company is facing industry headwinds that are likely to affect its performance in the future. In addition, the company is facing market-share loss, which is expected to affect its profitability metrics. Consequently, Diageo could incur a 600 basis-point reduction in EBIT margins in North America and a 200 basis-point reduction in Europe.
One way out of the current stagnation is for the company to invest in price, marketing, and route-to-market. According to the investment bank, such investments could result in 3% to 4% organic sales growth and 5% to 7% organic operating profit growth in FY28.
Diageo plc (NYSE:DEO) is a world-leading producer of premium alcoholic beverages, operating as a top alcohol company with over 200 brands sold in nearly 180 countries. They produce and distribute iconic brands, including Johnnie Walker, Guinness, Smirnoff, Tanqueray, and Baileys, spanning Scotch whisky, beer, tequila, and gin.
1. The Estée Lauder Companies Inc. (NYSE:EL)
Stock Upside Potential: 52.11%
Number of Hedge Fund Holders: 50
The Estée Lauder Companies Inc. (NYSE:EL) is one of the top consumer defensive stocks to buy now. On April 7, Reuters reported that the founding families of Spanish firm Puig and The Estée Lauder Companies Inc. are poised to meet to negotiate terms of a potential merger.
The talks come on the heels of Puig and Estee Lauder confirming last month that they were exploring the prospects of creating the world’s largest premium beauty player. The combined company will own some of the most sought-after brands, including Tom Ford, Carolina Herrera, and Clinique.
A potential merger would be structured as a cash-and-share public takeover by Estée Lauder for Puig. The merger is also expected to dilute Lauder’s family control, bringing it closer to the Puig family’s stake. The combined company would be listed on the New York Stock Exchange and would have revenue of over 20 billion euros. It would also make it the world’s number one premium beauty group, ahead of L’Oréal Luxe.
The Estée Lauder Companies Inc. is a global leader in high-end “prestige” beauty, manufacturing and marketing skincare, makeup, fragrance, and hair care products. It operates 20+ brands, including Estée Lauder, Clinique, La Mer, M·A·C, and The Ordinary, selling in 150 countries.
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