3 defensive stocks to buy for the second half of 2022 – Finbold – Finance in Bold | Jewelry Dukan

Inflation data released on September 13th spooked markets as the S&P 500 and other constituents sold off. To make matters worse, the housing market also appears to be slowing down and there are signs that consumer spending is also slowing down.

As we enter the all-important fourth quarter of the year, news of layoffs is adding further weight to markets. As such, it might make sense to position a portfolio defensively for the remainder of the year.

Accordingly, Finbold analyzed the markets and identified three defensive stocks to buy for the second half of 2022.

McKesson (NYSE:MCK)

The Company offers four business segments, United States, International, Medical Surgical Solutions and Prescription Technology Solutions. Its business is largely unaffected by economic conditions and provides healthcare supply management, oncology, specialty care and healthcare IT solutions worldwide.

With a slew of clients in the biotech sector, the stock offers growth along with the solid $68.8 billion in revenue it generated in 2021. MCK is part of the Healthcare Providers and Services industry, with 129 other stocks outperforming 94% of them.

Over the past month, MCK has traded from $338.38 to $373.77 and recently fell below the 50-day moving average. Technical analysis shows a support zone of $333.53-$335.90 and a resistance zone of $371.02-$373.85.

MCK 20-50-200 SMA line chart. Source. Finviz.com data. See more shares here.

Analysts at TipRanks rate the shares as a “Strong Buy,” with the average price over the next 12 months expected to reach $395.67, 15.90% higher than the current trading price of $341.40, with eight of the nine experts advocate for the “purchase” of McKesson.

Wall Street analysts’ price targets for MCK. Source: TipRanks

Real Estate Income (NYSE:O)

Realty Income is also referred to as a monthly dividend company and is preferred by dividend investors. Realty Income is a real estate investment trust (REIT) that owns over 11,000 properties on long-term net leases with commercial clients.

During its 53-year history of operation, the Company has regularly paid a dividend on 627 consecutive monthly common stock dividends. The company is an industry leader, and a roof over your head or an office is a necessity no matter the economic conditions, potentially making the company recession-proof. However, rising interest rates can hurt mortgage rates and hurt the company’s prospects for aggressive growth.

For the last month, O has been trading in the $65.01-$73.95 range with a negative short-term trend. Beyond that, there is a support zone between $64.67 and $64.87 and a resistance zone between $65.85 and $65.94.

O 20-50-200 SMA line chart. Source. Finviz.com data. See more shares here.

Analysts at TipRanks rate the shares as a “Moderate Buy,” with an estimated $76.00 average price over the next 12 months. 16.19% higher than the current trading price of $65.41. Notably, of the 12 TipRanks analysts, eight have a buy rating and four have a hold rating.

Wall Street analysts’ price targets for O. Source: TipRanks

Consolidated Edison Inc. (NYSE:ED)

Utility stocks often form the basis of all defensive portfolios, as they tend to have wide moats that discourage competitors from getting into the business. Edison serves the New York area with a base of 3.5 million customers for its electricity business and 1.1 million customers for its natural gas business.

In addition, the company is among the oldest publicly traded utilities in the United States. In addition, the company has offered its shareholders at least one annual dividend increase for 48 consecutive years.

For the past month, ED has traded in a tight range between $97.44 and $102.21, staying at the high end of its 52-week range. A support zone is identified from $97.15 to $99.69 and a resistance zone from $100.85 to $101.92.

ED 20-50-200 SMA line chart. Source. Finviz.com data. See more shares here.

Analysts at TipRanks rate the shares as a “moderate sell” and forecast a downward movement over the next 12 months as the average price they see is $89.86. -10.11% lower than the current trading price of $99.97.

Wall Street analysts’ price targets for ED. Source: TipRanks

Regardless of whether growth stocks are in a portfolio, adding defensive exposure should help balance the portfolio and reduce volatility.

The above three stocks are by no means immune to volatility, but given their earnings, their business moat, and the industry in which they operate, they should do well over the short to medium term.

Buy stocks now with Interactive Brokers – the most advanced investment platform


Disclaimer: The content of this website should not be construed as investment advice. Investing is speculative. When investing, your capital is at risk.

Leave a Comment