Consumer defensive stocks are those that provide essential goods and services that are relatively insensitive to changes in the business cycle. Regular consumption of these products and services results in relatively stable demand, even during economic downturns. Consumer defensive stocks typically include utility companies, food and beverage manufacturers, and healthcare providers. This includes companies such as Walmart Inc. (NYSE: WMT), PepsiCo Inc. (NASDAQ: PEP), and Costco Wholesale Corporation (NASDAQ: COST) to name a few.
These companies often have high barriers to entry, due to their large scale or brand recognition. As a result, they tend to be less volatile than other types of stocks and can provide stability for an investment portfolio. Consumer defensive stocks tend to pay dividends, which can provide income during periods of stock market turbulence. With this in mind, here are two top consumer defensive stocks to check out in the stock market today.
Consumer Defensive Stocks To Buy [Or Sell] Now
The Procter & Gamble Company (NYSE: PG)
Philip Morris International Inc. (NYSE: PM)
Procter & Gamble Co. (PG Stock)
Starting off, The Procter & Gamble Company (PG) is an American multinational consumer goods corporation. In detail, the company specializes in a wide range of products, including beauty, healthcare, grooming, and baby, family, and home care products.
PG Recent Stock News
Just last month, Procter & Gamble announced better-than-expected first-quarter 2023 financial results. In detail, the consumer giant reported Q1 2023 earnings of $1.57 per share and revenue of $20.6 billion. Meanwhile, consensus estimates for the quarter were earnings of $1.55 per share, and revenue estimates of $20.6 billion. What’s more, PG said it reaffirms its fiscal year 2023 estimates, which are earnings of $5.81 to $6.04 per share, while now estimating FY 2023 revenue of $77.78 billion to $79.38 billion.
Additionally, Jon Moeller, Chairman of the Board, President, and CEO commented, “These results enable us to maintain our guidance ranges for organic sales and EPS growth for the fiscal year despite continued significant headwinds. We remain committed to our integrated strategies of a focused product portfolio, superiority, productivity, constructive disruption and an agile and accountable organization structure.“
PG Stock Chart
During the last month of trading, PG stock has recovered 12.56%, while still being down 10.61% so far in 2022. Meanwhile, shares of PG stock closed Tuesday’s trading session up by 0.86% at $145.62 a share.
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Philip Morris International (PM Stock)
Next, Philip Morris International (PM) is one of the world’s largest tobacco companies, with products sold in over 180 countries. The company’s portfolio includes some of the world’s best-selling cigarette brands, including Marlboro, Virginia Slims, and L&M. Philip Morris International also manufactures and sells other tobacco products, including cigars, snus, and heated tobacco products.
PM Recent Stock News
Also last month, Philip Morris International reported a beat for its 3rd Quarter 2022 financial and operating results. Diving in, the company reported earnings of $1.53 per share and revenue of $20.9 billion. For context, Wall Street’s consensus estimate was earnings of $1.38 per share and revenue of $7.4 billion. Additionally, PM also announced its regular quarterly dividend by 1.6% to $1.27 per share, which results in an annualized rate of $5.08 per share.
Jacek Olczak, Chief Executive Officer said, “We delivered very strong performance in the third quarter, driving quarterly adjusted diluted EPS of $1.53 per share despite pressures related to currency, the supply chain and inflation.”