To The Moon

Defensive sectors, such as utilities, consumer staples, and healthcare, tend to perform well when economic growth slows, as demand for their products and services remains stable. Here are some defensive U.S. stocks currently on the radar for growth:

1. $Johnson & Johnson(JNJ)$  – Healthcare

Johnson & Johnson is a blue-chip healthcare company with diversified revenue streams across pharmaceuticals, medical devices, and consumer health products. Healthcare stocks like J&J often perform well in slower growth periods because healthcare services are always in demand.

Growth drivers include its continued expansion in immunology and oncology treatments, and strong pipeline of pharmaceutical products.

2. $Procter & Gamble(PG)$  – Consumer Staples

Procter & Gamble is a leading consumer goods company, with products ranging from household items to personal care brands. As a staple in most households, P&G is a reliable defensive play. Its brand strength, pricing power, and ability to pass on inflationary costs to consumers make it a good candidate for continued growth.

Its focus on cost management and supply chain efficiency positions it well for both inflationary and deflationary environments.

3. NextEra Energy (NEE) – Utilities

NextEra Energy is a utility company with a growing focus on renewable energy, which adds a growth component to the traditional defensive nature of utilities. The company is well-positioned as a leader in renewable energy infrastructure, making it an appealing option for long-term growth as the U.S. energy sector transitions towards greener energy.

NEE has stable cash flows and a history of consistent dividend growth, making it a defensive stock with potential for upside due to the energy transition.

4. $Coca-Cola(KO)$  – Consumer Staples

Coca-Cola, a global leader in beverages, is another strong defensive stock. In times of economic uncertainty, consumers typically continue buying household beverage products. The company’s vast product portfolio and global presence make it a steady performer.

Its strong pricing power and focus on expanding its healthier product lines and beverages outside of soda are key growth drivers.

5. Merck & Co. (MRK) – Healthcare

Merck is a pharmaceutical company well-known for its cancer drug Keytruda, which has been a major revenue driver. Healthcare companies like Merck benefit from relatively inelastic demand for their products. As the company continues to innovate in oncology, vaccines, and other high-growth areas, it presents a solid defensive growth opportunity.

Merck has a strong pipeline, particularly in immunotherapy and vaccines, supporting long-term growth despite economic fluctuations.

6. Duke Energy (DUK) – Utilities

Duke Energy provides electricity and natural gas to customers across the U.S. Utility companies like Duke are traditionally viewed as safe bets during economic downturns, due to the essential nature of their services. Duke’s investments in renewable energy provide an additional growth engine.

The company’s stable dividend and solid financials make it a reliable defensive stock.

7. $Pepsi(PEP)$  – Consumer Staples

Similar to Coca-Cola, PepsiCo is a strong defensive stock thanks to its wide range of beverages and snacks. The company’s dual focus on beverages and snack foods gives it a diversified revenue base, and its focus on healthier product lines positions it for long-term growth.

PepsiCo has strong global brand recognition and stable cash flows, making it a solid choice for defensive investors.

I believe all of these stocks are all solid defensive plays, with stable dividends and the ability to weather economic downturns. Despite mixed market conditions, these companies’ fundamentals and consistent demand make them attractive for growth even as investors brace for further rate cuts.