In this article, we will list the Top 5 Consumer Defensive Stocks to Buy Now. Please visit Top 10 Consumer Defensive Stocks to Buy Now if you would like to see the extended list and the methodology behind it.
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 (NASDAQ:MNST) 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 (NASDAQ:MNST) 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 (NYSE:DG) 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 (NYSE:DG) 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. (NYSE:PM) 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. (NYSE:PM) 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. (NYSE:EL) 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. (NYSE:EL) 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.
While we acknowledge the potential of EL 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 EL and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 10 Undervalued Large Cap Stocks to Buy and 9 Best Gold Mining Companies to Buy With High Upside Potential.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.
