Published on 30 Jan 2023 on Insider Monkey via Yahoo Finance

15 Undervalued Defensive Stocks For 2023

In this article, we will take a look at the 15 undervalued defensive stocks for 2023. You can skip this part and go to 5 Undervalued Defensive Stocks For 2023.

Investors flocked to defensive stocks in 2022 amid recession fears and massive losses in the growth stocks space. Defensive stocks are favored by investors during tough economic times as companies operating in the space feel little impact of the broader economic downturn. That’s because they sell products and services whose demand remains almost unchanged due to their essential nature. Defensive sectors include consumers staples, healthcare and utilities, among others. As of December 29, the S&P 500 utility stocks as a whole fell 0.5% in 2022, while consumer staples were down 2.7% in the period. Compare this performance to the broader market (SPY) decline of about 20% and you begin to understand why everyone wants to invest in undervalued defensive stocks when things go south.

Smart investors are continuing to prefer defensive stocks in 2023 as the economic outlook for this year paints no rosy picture. According a Wall Street Journal report, Lisa Erickson, head of the public markets group at U.S. Bank Wealth Management, believes the starting months of this year would continue to pose challenges. That’s why the investor reportedly said she is recommending dividend-paying defensive stocks to her clients.