4 Trending Defensive Stocks To Watch Right Now
Defensive stocks. Chances are, if you have been keeping up with the latest stock market news, you would have heard of this phrase. For the most part, it comes as no surprise that investors are eyeing this group of stocks now. Even as the broader stock market seems to be on the recovery, there remain several factors contributing to broad-based volatility. Notably, the Federal Reserve is set to commence its two-day monetary policy discussion session today. This would have some investors eagerly awaiting updates on the Fed’s opinions on tapering and “substantial further progress”.
By and large, with the current air of uncertainty, investors would turn to defensive stocks. These are often well-established companies whose businesses are constantly in demand. Additionally, some of the best dividend stocks also fall within this group. Even now, the likes of Johnson & Johnson (NYSE: JNJ) and Walgreens (NASDAQ: WBA) continue to make headlines.
For starters, JNJ’s Covid booster shot is reportedly 94% effective when given two months after the first dose. Moreover, JNJ’s current findings also suggest that a second dose “increases antibody levels by four to six times” compared to its initial one-dose regimen. Meanwhile, Walgreens is acquiring a $970 million majority stake in Shield Health Solutions, significantly expanding its specialty pharmacy business. All in all, the defensive stock space appears to be active now. Could that make one of these top players worth watching now?
Top Defensive Stocks To Buy [Or Sell] Today
- Ford Motor Company (NYSE: F)
- Coca-Cola Company (NYSE: KO)
- General Motors Company (NYSE: GM)
- FedEx Corporation (NYSE: FDX)
Ford Company
First up, we have Ford, a defensive stock that has gotten a lot of momentum recently in the stock market. For some context, F stock has been up by over 80% in the past year alone and currently trades at $12.78 as of 10:31 a.m. ET. The company is one of the largest automobile manufacturers in the U.S. and is known for both its commercial vehicles under the Ford brand and its luxury cars under its Lincoln brand. So what has the company been up to recently?
The company announced last week that pre-production of its all-electric F-150 Lightning trucks has begun. With 150,000 reservations of the immensely popular F-150 trucks to date, the company says that it will invest an additional $250 million and will be adding 450 more direct jobs across three southeast Michigan facilities. It also expects the all-electric F-150 Lightning to go on sale by next spring.
Not resting on its laurels, the company also announced the launch of an autonomous vehicle delivery service in three U.S. cities with Argo AI, and Walmart (NYSE: WMT). This will be Walmart’s first multi-city autonomous delivery collaboration in the U.S. and its last-mile delivery service will use Ford’s self-driving test vehicles to deliver Walmart orders to customers. Given the exciting developments surrounding Ford, will you consider investing in F stock?
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Coca-Cola Company
Next up, we have Coca-Cola, the world’s largest non-alcoholic beverage company. The company’s portfolio of brands is consumed by billions all over the world and includes Coca-Cola, Sprite, Fanta, and other sparkling soft drinks. It constantly strives to improve its line of products, from reducing sugar in its drinks to bringing innovative new products to the market. KO stock currently trades at $54.25 as of 10:32 a.m. ET. In light of that, how has Coca-Cola done financially?
In its latest quarter financials, the company reported a strong second quarter. Diving in, Coca-Cola says that its global unit case volume grew by 18%. Notably, net revenue also grew by a commendable 42% to $10.1 billion. It says that revenue growth was driven by the ongoing recovery in markets where coronavirus-related uncertainty is abating, along with the benefit from cycling revenue declines from the impact of the pandemic last year. The company also posted earnings per share of $0.61, up by 48% year-over-year. With this piece of information, will you consider buying KO stock?
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General Motors
General Motors is a multinational company that focuses on its all-electric future that is accessible to all. The company, like Ford, has announced huge investments in its electrification plans in a bid to move into electric vehicles. Also, General Motors is developing its Ultium battery platform, which will power everything from mass-market to high-performance vehicles. Together with its subsidiaries and joint venture entities, the company sells vehicles under the Chevrolet, Buick, and Cadillac brands among others. GM stock currently trades at $49.17 as of 10:32 a.m. ET.
On Monday, the company announced that its Chevrolet Bolt EV battery production will resume. This comes after a recall on its Bolt EVs, with a supplier manufacturing defect that may lead to battery fire under rare circumstances. Its LG battery cell and module production resume with updated manufacturing procedures.
Furthermore, the company outlined a comprehensive action plan to ensure that customers can safely and confidently drive their Chevy Bolt EV and EUV. The action plan includes both hardware and software remedies, some of which are in place with immediate effect. Seeing how the worst could be behind the company, is it time to add GM stock to your portfolio of defensive stocks right now?
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FedEx Corporation
Another name to consider among defensive stocks now would be the FedEx Corporation. In brief, FedEx is a Tennessee-based transportation company. The company primarily focuses on transportation, e-commerce, and business services. All of which would be in constant demand even if pandemic conditions continue to worsen. Now, for investors looking to add some defensive stocks to their portfolios, FDX stock could be a go-to. This would be the case given FedEx’s latest moves and upcoming earnings report after today’s closing bell. Now, FDX stock currently trades at $250.69 as of 10:32 a.m. ET.
Overall, Wall Street is expecting FedEx to deliver an earnings per share of $4.96 on revenue of $21.89 billion for the quarter. This would suggest possible year-over-year gains of 7% and 13% respectively. Now, with this being against the backdrop of the company’s solid performance mid-pandemic, these figures are respectable.
Aside from that, FedEx is also hard at work on the operational front. As of last week, the company is now working with enterprise software giant Salesforce (NYSE: CRM). Together, the pair is looking to provide end-to-end e-commerce and supply chain management solutions. After considering all of this, would FDX stock be a top buy for you?
