The stock market has taken a sharp turn after two years of blockbuster gains, and many investors have felt uneasy. These investors are now turning to consumer defensive stocks due to growth stocks sputtering amid a new wave of tariffs rattling global trade.
Consumer defensive stocks provide essential goods and services that people rely on regardless of economic conditions and are more insulated during market downturns. Investors have piled into consumer defensive stocks for that reason, and it’s a good idea to look into the biggest winners in this sector.
Even during bear markets, there are pockets of the market that perform exceptionally well. For example, I identified Why These 15 Healthcare Stocks Are Surging in 2025 in another article.
A supermarket shelf overflowing with a variety of fast-moving consumer goods.
Methodology
For this article, I screened the best-performing consumer defensive stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. 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).
15. BJ’s Wholesale Club Holdings Inc (NYSE:BJ)
Number of Hedge Fund Holders In Q4 2024: 43
BJ’s Wholesale Club Holdings Inc (NYSE:BJ) is a leading operator of membership warehouse clubs that offers up to 25% savings on manufacturer-branded groceries compared to traditional supermarket competitors.
The company’s stock has seen significant growth in 2025 due to strong financial performance reported in their 10-K filing for the fiscal year ended February 1, 2025. Net sales increased to $20.0 billion from $19.5 billion in the previous year, while membership fee income rose by 8.5% to $456.5 million.
The company’s improved profitability, with net income increasing to $534.4 million from $523.7 million in the previous year, has been attributed to higher membership fees and improved sales in perishables and general merchandise.
The company’s expansion strategy has also boosted positive market sentiment with new locations opening in February 2025, including clubs in Brooksville, Florida, and Myrtle Beach, South Carolina. These new locations feature member perks like low-priced fuel.
The consensus price target of $110.82 implies 3.66% downside.
BJ stock is up 28.75% year-to-date.
14. Anheuser-Busch InBev SA/NV (NYSE:BUD)
Number of Hedge Fund Holders In Q4 2024: 31
Anheuser-Busch InBev SA/NV (NYSE:BUD) is a global producer, distributor, and marketer of beer, alcoholic beverages, and soft drinks with an extensive portfolio of brands including Budweiser, Stella Artois, Corona, Beck’s, and many others.
The stock is up significantly so far in 2025, as the stock has been recovering from the earlier selloff since October 2024 to early 2025. This year, though, the stock has made a solid comeback as investors pile into more defensive picks.
The consensus price target of $66 implies 1.38% upside.
BUD stock is up 30.06% year-to-date.
13. Pilgrims Pride Corp (NASDAQ:PPC)
Number of Hedge Fund Holders In Q4 2024: 28
Pilgrims Pride Corp (NASDAQ:PPC) is a major poultry producer that operates in three reportable segments: U.S., Europe, and Mexico, with the U.S. segment generating the highest net sales.
The company’s stock has experienced significant growth in 2025. A major catalyst for the stock surge was the announcement of a special cash dividend of $6.30 per share.
Pilgrim’s Pride reported net sales of $17.9 billion, up from $17.4 billion in the previous year, while net income more than tripled to $1.1 billion from $322.3 million in 2023. Gross profit showed remarkable improvement, reaching $2.3 billion, more than double the previous year’s $1.1 billion, while operating income increased significantly to $1.5 billion compared to $522.3 million in the prior year.
The consensus price target of $48.4 implies 9.21% downside.
PPC stock is up 32.55% year-to-date.
12. Sprouts Farmers Market Inc (NASDAQ:SFM)
Number of Hedge Fund Holders In Q4 2024: 47
Sprouts Farmers Market Inc (NASDAQ:SFM) is a specialty retailer of fresh, natural, and organic food products headquartered in Phoenix, operating more than 440 stores in 24 states across the United States.
The company’s stock has surged in 2025 primarily due to its better-than-expected fourth quarter results and significantly raised guidance for the full year. Sprouts reported $2 billion in revenue for Q4.
It exceeded expectations of $1.95 billion and grew 18% year-over-year, while comparable store sales grew by 11.5%.
The company’s optimistic outlook for 2025 has fueled investor confidence, with forecasted EPS of $4.52 to $4.68.
For the full year 2024, Sprouts reported diluted EPS of $3.75 on net sales of $7.7 billion, up 13% from 2023. The retailer’s expansion strategy remains strong, with 33 new stores opened in 2024 and plans to open at least 35 new locations in 2025.
The consensus price target of $167 implies 1.63% downside.
SFM stock is up 33.60% year-to-date.
11. Compania Cervecerias Unidas (NYSE:CCU)
Number of Hedge Fund Holders In Q4 2024: 6
Compania Cervecerias Unidas (NYSE:CCU) is a Chilean company that produces, distributes, and markets alcoholic and non-alcoholic beverages across several Latin American countries, with a diverse portfolio including beer, soft drinks, water, wine, and spirits.
The stock is up significantly so far in 2025 as the company released its consolidated financial statements for the year ended December 31, 2024, with the independent auditor’s report dated February 25, 2025. In Q4, revenue grew 69% year-over-year, and net income grew 77.7% year-over-year.
The consensus price target of $11.03 implies 27.08% downside.
CCU stock is up 35.25% year-to-date.
10. Stride Inc (NYSE:LRN)
Number of Hedge Fund Holders In Q4 2024: 33
Stride Inc (NYSE:LRN) is a leading education technology company providing personalized learning programs and digital education services to students of all ages across the United States.
The stock is up significantly so far in 2025 as investors are attracted to its strong growth potential and immunity from tariff impacts. This performance continues a long-term trend of a 500%-plus rally in the past five years.
The most significant catalyst for Stride’s recent stock appreciation was the announcement of a strategic partnership with a major tech industry player.
The company’s exceptional Q2 fiscal 2025 results further fueled the rally, with revenue of $587.2 million (16% increase year-over-year) and net income of $96.4 million (44% increase). Stride raised its fiscal year 2025 revenue forecast to $2.32-$2.36 billion.
The consensus price target of $123.5 implies 12.57% downside.
LRN stock is up 35.53% year-to-date.
9. Ambev SA (NYSE:ABEV)
Number of Hedge Fund Holders In Q4 2024: 22
Ambev SA (NYSE:ABEV) is a major beverage company that primarily focuses on beer production and distribution. It controls 69% of the Brazilian beer market while also manufacturing soft drinks and energy drinks.
The stock is up significantly so far in 2025 as it reported solid Q4 2024 revenue growth. It surpassed analyst expectations by 5.77% and grew 35.25% year-over-year.
EPS missed by 1.3% but still grew by 10.7%.
The consensus price target of $2.45 implies 1.61% downside.
ABEV stock is up 35.90% year-to-date.
8. Celsius Holdings Inc (NASDAQ:CELH)
Number of Hedge Fund Holders In Q4 2024: 33
Celsius Holdings Inc (NASDAQ:CELH) is an American company that produces a range of fitness and energy beverages under the brand name Celsius, marketing its products as healthy alternatives in the energy drink sector.
The stock is up significantly so far in 2025 due to its acquisition of Alani Nutrition LLC for $1.8 billion in April 2025. This major acquisition follows the signing of a definitive agreement to acquire Alani in February 2025.
In March 2025, Celsius also signed an agreement to sell and distribute its energy drinks in Luxembourg and Belgium.
As of the latest reporting period, Celsius holds an 11.8% dollar share in the energy drink market, an increase of 1.6% from the prior-year period.
The consensus price target of $46.47 implies 29.3% upside.
CELH stock is up 36.41% year-to-date.
7. Gaotu Techedu Inc (NYSE:GOTU)
Number of Hedge Fund Holders In Q4 2024: 15
Gaotu Techedu Inc (NYSE:GOTU) is a Chinese education technology company offering online tutoring services for K-12 students, along with foreign language, professional, and interest-based courses.
A significant factor in the company’s stock price performance in 2025 is its projected meaningful reduction in non-GAAP operating loss for 2025 compared to 2024, as announced on March 11, 2025.
The broader Chinese market has been responding positively to government announcements about implementing a “moderately loose” monetary policy strategy, which has created interest among investors in Chinese stocks like Gaotu.
The consensus price target of $5.81 implies 89.87% upside.
GOTU stock is up 40.18% year-to-date.
6. Philip Morris International Inc (NYSE:PM)
Number of Hedge Fund Holders In Q4 2024: 102
Philip Morris International Inc (NYSE:PM) is an American multinational tobacco company that sells products in over 180 countries, specializing in cigarettes, heated tobacco products, and nicotine pouches under brands like Marlboro, L&M, IQOS, and ZYN.
The stock is up significantly so far in 2025 due to its exceptional first-quarter results announced on April 23, showing a 24.6% increase in reported diluted earnings per share to $1.72 and a 5.8% increase in net revenues to $9.3 billion.
PMI has had remarkable growth in its smoke-free business segment, which now accounts for 42% of total net revenues and 44% of total gross profit, with shipment volumes increasing by 14.4%.
The company has raised its full-year adjusted diluted EPS forecast for 2025 to a range of $7.01 to $7.14, representing a substantial increase from $4.52 in 2024.
The consensus price target of $163 implies 3.85% downside.
PM stock is up 41.81% year-to-date.
5. Embotelladora Andina SA (NYSE:AKO.B)
Number of Hedge Fund Holders In Q4 2024: N/A
Embotelladora Andina SA (NYSE:AKO.B) is the largest producer of soft drinks in Chile and the chief producer, bottler, and distributor of Coca-Cola soft drinks in Chile, with operations also extending to parts of Argentina, Brazil, and Paraguay.
The company reported its fourth-quarter earnings results for the period ended December 31, 2024, on January 28, 2025, which appears to have catalyzed positive market sentiment. Embotelladora Andina paid an interim dividend of 155.1 CLP on January 26, 2025.
It reported a jump in net sales to 3.22 trillion Chilean pesos, up from 2.62 trillion the prior year, and net income rose to 232.7 billion Chilean pesos, up 35.8% year-over-year. Earnings per share also grew by 8.46% to 246 Chilean pesos.
AKO.B stock is up 42.32% year-to-date.
4. Agape ATP Corp (NASDAQ:ATPC)
Number of Hedge Fund Holders In Q4 2024: N/A
Agape ATP Corp (NASDAQ:ATPC) is a diversified company focused on health and wellness products, as well as renewable energy solutions, with operations centered in Malaysia and the broader ASEAN region.
The most significant news behind the stock’s sharp rise in 2025 was the announcement in early April that its green energy subsidiary, ATPC Green Energy, secured a landmark supply agreement to deliver EN590 10PPM diesel and Jet Fuel A1 to Swiss One over a 12-month period.
Earlier, in August 2024, the company completed a 1-for-20 reverse stock split to maintain NASDAQ listing compliance, which lifted the share price and reduced the number of shares outstanding. Agape ATP also announced new product launches in both wellness and green energy, along with a strategic partnership with B&H Intec Solution to form ATPC Green Energy Sdn. Bhd.
ATPC stock is up 101.69% year-to-date.
3. Park Ha Biological Technology Co Ltd (NASDAQ:PHH)
Number of Hedge Fund Holders In Q4 2024: 1
Park Ha Biological Technology Co Ltd (NASDAQ:PHH) develops and sells private-label skincare products and operates franchise beauty stores, mainly in China.
The stock is up significantly so far in 2025, with the most significant driver being its successful initial public offering on December 27, 2024, where it raised $4.8 million at $4.00 per share. After the IPO, the stock surged rapidly.
The company’s rapid price appreciation is largely attributed to post-IPO momentum and heightened retail interest, particularly from overseas investors, as well as its niche positioning in the skincare market focused on solutions for problematic skin and a dual business model combining direct sales with franchise expansion.
PHH stock is up 119.08% year-to-date.
2. Vasta Platform Ltd (NASDAQ:VSTA)
Number of Hedge Fund Holders In Q4 2024: 2
Vasta Platform Ltd (NASDAQ:VSTA) is a Brazil-based educational technology company that provides digital and end-to-end educational solutions for private K-12 schools.
The stock is up significantly so far in 2025, with the main catalyst being growing expectations that the company will achieve profitability this year. Analysts forecast a profit of 59 million Brazilian reals for the year, and the company has narrowed its trailing twelve-month losses to 61 million reals from 84 million reals in the prior fiscal year.
A key event was the anticipation and subsequent release of fourth-quarter and full-year 2024 results on March 12, 2025. Vasta is on the verge of turning profitable, and investors are betting on a turnaround despite revenue growth trailing the broader industry.
The consensus price target of $3 implies 37.2% downside.
VSTA stock is up 140.50% year-to-date.
1. QuantaSing Group Ltd (NASDAQ:QSG)
Number of Hedge Fund Holders In Q4 2024: 2
QuantaSing Group Ltd (NASDAQ:QSG) is a China-based lifestyle solutions provider, best known for its online learning services and recent expansion into consumer goods and pop toys.
The stock is up significantly so far in 2025, with the most significant catalyst being its strong second-quarter fiscal 2025 earnings reported on March 11, 2025. The company posted net income of $17.4 million, up 57% quarter-over-quarter and 18% year-over-year, and adjusted net income rose 50% sequentially, despite a decline in revenue.
Another major event was the announcement on March 24, 2025, of an investment in Shenzhen Yiqi Culture, marking QuantaSing’s entry into the pop toys and consumer goods market.
QSG stock is up 168.06% year-to-date.
While we acknowledge the potential of QSG, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than QSG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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