The Best Defensive Stocks to Buy Now

Defensive stocks are like umbrellas—you want to have them around in case economic skies darken. Companies in these sectors provide goods and services that consumers continue to purchase and use regardless of whether times are good or bad—things like healthcare, utilities, personal care products, and tobacco.

Thanks to their reliable nature, defensive stocks have shown some strength. The Morningstar US Market Index has fallen behind the Morningstar US Defensive Super Sector Index for the year to date, with returns of negative 3.40% versus 4.60%.

The 10 Best Defensive Stocks to Buy Now

To create our list of the best defensive stocks to buy now, we screened for stocks that land in Morningstar’s US Defensive Super Sector, which encompasses the consumer defensive, healthcare, and utilities sectors. These stocks all earn Morningstar Economic Moat Ratings of wide; they’re also all undervalued according to Morningstar’s metrics as of March 19, 2025.

1. Pfizer PFE
2. The Campbell’s Co CPB
3. Constellation Brands STZ
4. Brown-Forman Corp BF.B
5. GSK GSK
6. West Pharmaceutical Services WST
7. Coloplast CLPBY
8. Zimmer Biomet Holdings ZBH
9. Danaher DHR
10. Ambev ABEV

Here’s a little more about each of the best defensive stocks to buy, including commentary from the Morningstar analysts who cover each company as of March 19, 2025.

Pfizer

• Morningstar Price/Fair Value: 0.62
• Morningstar Uncertainty Rating: Medium
• Market Capitalization: $148.8 Billion
• Forward Dividend Yield: 6.56%
• Sector: Drug Manufacturers—General

Our list of the best defensive stocks to buy now opens with drugmaker Pfizer, one of the world’s largest. The stock is priced at a 38% discount to our fair value estimate of $42.00. The company continues its transition away from coronavirus vaccine revenue, helped by a pipeline that includes other vaccines, cancer treatments, and cardiovascular drugs.

Pfizer’s foundation remains solid, based on strong cash flows generated from a basket of diverse drugs. The company’s large size confers significant competitive advantages in developing new drugs. This unmatched heft, combined with a broad portfolio of patent-protected drugs, has helped Pfizer build a wide economic moat around its business.

Pfizer’s size establishes one of the largest economies of scale in the pharmaceutical industry. In a business where drug development needs a lot of shots on goal to be successful, Pfizer has the financial resources and the established research power to support the development of more new drugs. Also, after many years of struggling to bring out important new drugs, Pfizer is now launching several potential blockbusters in cancer and immunology.

Pfizer’s vast financial resources support a leading salesforce. Pfizer’s commitment to postapproval studies provides its salespeople with an armamentarium of data for their marketing campaigns. Further, leading salesforces in emerging countries position the company to benefit from the dramatically increasing wealth in nations such as Brazil, India, and China.

Pfizer’s 2020 move to divest its off-patent division Upjohn to create a new company (Viatris) in combination with Mylan should drive accelerating growth at the remaining innovative business. With limited patent losses and fewer older drugs, Pfizer is poised for steady growth (excluding the more volatile covid-19-related product sales) before a round of major patent losses hit in 2028.

We believe Pfizer’s operations can withstand eventual generic competition; its diverse portfolio of drugs helps insulate the company from any one particular patent loss. Following the merger with Wyeth several years ago, Pfizer has a much stronger position in the vaccine industry with pneumococcal vaccine Prevnar. Vaccines tend to be more resistant to generic competition because of their manufacturing complexity and relatively lower prices.

Read more about Pfizer stock.

The Campbell’s Co

• Morningstar Price/Fair Value: 0.63
• Morningstar Uncertainty Rating: Medium
• Market Capitalization: $11.4 Billion
• Forward Dividend Yield: 4.05%
• Sector: Packaged Foods

Next on our list of affordable defensive stock buys is The Campbell’s Co. The packaged-food giant boasts vast resources and stout retail relationships, and we anticipate further brand growth should result from distribution gains and flavor and packaging innovation. Campbell’s stock looks 37% undervalued compared with our $61.00 fair value estimate.

Over the past six-plus years, wide-moat Campbell has orchestrated significant changes. For one, the portfolio mix has shifted quite dramatically, such that its core soup lineup now accounts for only around one fourth of total sales (down from more than 40% in fiscal 2017), while snacks make up around 50% (up from less than 30%). In addition, the firm has worked to drive efficiencies across its supply chain and manufacturing network to fuel spending behind its brands and capabilities to solidify its competitive edge. The byproduct of these efforts has been a 3% average annual organic sales growth over the past five years against mid- to high-teens adjusted operating margins.

We attribute this performance to Campbell’s sound strategic focus—leveraging technology, data insights, and artificial intelligence to bring products to market that align with evolving consumer trends in a timely fashion while maintaining a stringent eye on costs. But Campbell isn’t content with the status quo. As evidence, Campbell recently laid out plans to unlock $250 million in savings through fiscal 2028, on top of the $950 million it realized over the past few years, anchored in optimization, technological enhancements, and a reduction in indirect spending. Importantly, we don’t expect these efforts to merely buoy the bottom line but to be directed toward consumer-valued innovation and marketing. In this context, we forecast 5% of sales to be directed to research, development, and marketing annually (approximately $550 million), which we see as essential in helping ensure its brands keep pace with consumer tastes and preferences, underpinning the firm’s intangible-based moat.

Beyond efforts to steady its core operations, we think Campbell still hungers for inorganic pursuits. Most recently, Campbell acquired Sovos Brands, which generates more than $1 billion in annual sales. We see its exposure to the premium sauce aisle complementing its lower-priced Prego brand and benefiting from Campbell’s financial resources and entrenched retailer relationships. This should spur distribution gains as the integration progresses, juicing its sales prospects, in our view.

Read more about Campbell’s stock.

Constellation Brands

• Morningstar Price/Fair Value: 0.65
• Morningstar Uncertainty Rating: Medium
• Market Capitalization: $32.3 Billion
• Forward Dividend Yield: 2.26%
• Sector: Beverages—Brewers

Constellation Brands earns a wide moat rating thanks to its portfolio of top-selling Mexican beer brands and tight distributor partnerships in the beer business, which makes up 80% of total revenue. It holds a 72% share in the structurally attractive $27 billion US premium import beer segment. This defensive stock trades 35% below our fair value estimate of $274.00.

We award a wide moat rating to Constellation Brands on the basis of the strong brand equity and tight distributor relations that the company’s top-selling Mexican beer portfolio enjoys, as well as some scale-based cost advantages in procurement and advertising.

Constellation has earned its perch as the top player (with a 60%-plus volume share) in the structurally attractive premium import beer segment in the US, thanks to its 2013 acquisition of exclusive distribution rights for Mexican beer brands including Modelo and Corona in the country. We give the brewer credit for a series of smart ad campaigns over the past decade, as well as strong quality control in its brewing operations, which have bolstered and reinforced the popularity and premium positioning of its two crown jewel brands. While overall beer volume in the US has been stagnant for years, Constellation has capitalized on premiumization tailwinds to drive high-single-digit volume growth in past years. Building on this brand strength, the firm has consistently invested in marketing (including digital platforms) to expand its reach beyond the traditional Hispanic consumer base and leveraged distributor relationships to place its beers in more retail outlets, bars, and restaurants.

We expect beer volume growth to remain strong for Constellation in the coming years, backed by consumer loyalty, the social currency associated with its premium brands, and a solid innovation pipeline. Risks and uncertainties abound, however, including competitive encroachment from categories adjacent to beer (such as spirits-based ready-to-drink beverages) as well as craft beer brands that pose a threat at the local and regional level. Also, regulations on alcohol content labeling, excise taxes, and potential tariff hikes (though not in our base-case scenario) may damp consumer demand. In addition, the firm has struggled to turn around its wine and spirits business (18% of sales) given category weakness and a lack of top brands. However, we expect the firm to remain agile and pragmatic in navigating the evolving competitive and macro environment and continue to thrive, thanks to its brand prowess and operational expertise.

Read more about Constellation Brands' stock.

Brown-Forman

• Morningstar Price/Fair Value: 0.67
• Morningstar Uncertainty Rating: Medium
• Market Capitalization: $16.3 Billion
• Forward Dividend Yield: 2.60%
• Sector: Beverages—Wineries & Distilleries

Brown-Forman is 33% undervalued relative to our $52.00 fair value estimate. This defensive stock operates in the wineries and distilleries industry, with a brand collection that includes Jack Daniel’s, Woodford Reserve, and Old Forester. The company generates 45% of sales from its home market, while the bulk of international revenue comes from Europe, Australia, and Latin America.

We award a wide economic moat rating to Brown-Forman, based on strong brand intangible assets and cost advantages associated with the spirits maker’s premium American whiskey portfolio that makes up close to 70% of sales.

With over 150 years of distilling experience specializing in Tennessee whiskey and Kentucky bourbon, Brown-Forman has earned accolades and loyalty from drinkers for distinct flavors and consistent quality, building strong brand equity for its core Jack Daniel’s trademark in the US and globally. We are constructive on the growth prospects of the premium spirits maker, as its high-end positioning in the structurally attractive whiskey category (where a lengthy maturation process creates significant entry barriers) aligns well with the industry’s premiumization trend. Beyond this, we surmise the firm is poised for volume expansion, thanks to a strong innovation pipeline promising new releases not only in whiskeys and tequilas, but also in the attractive fast-growing ready-to-drink category. In particular, close collaboration with wide-moat Coca-Cola for the global launch of the Jack and Coke premix cocktail should allow the distiller to capitalize on demand tailwinds and benefit from Coke’s distribution clout. Additionally, recent entry into new categories of gin and rum via acquisitions of super-premium brands should broaden the appeal of Brown-Forman’s overall alcohol portfolio and add a new avenue of growth, though the revenue contribution will likely remain small in the near future.

Brown-Forman’s growth outlook is not without risks though. The distiller and its spirits peers face growing excise tax and regulatory headwinds in developed countries. Growth in craft distillers has slowed, but these nimble players could still chip away at Brown Forman’s loyal customer base by offering a refreshing alternative. The possible return of retaliatory tariffs on US whiskeys in Europe could also pose a near-term threat. That said, we expect the distiller will continue to thrive thanks to its advantaged competitive position and the Brown family’s long-term focus.

Read more about Brown-Forman’s stock.

GSK

• Morningstar Price/Fair Value: 0.68
• Morningstar Uncertainty Rating: Medium
• Market Capitalization: $79.6 Billion
• Forward Dividend Yield: 3.93%
• Sector: Drug Manufacturers—General

Pharmaceutical titan GSK looks undervalued as it trades 32% below our fair value estimate of $58.00. Patents, economies of scale, and a powerful distribution network support GSK’s wide moat. Its patent-protected drugs carry strong pricing power, and the company faces relatively minor near-term patent losses, setting up steady growth over the next several years.

As one of the largest pharmaceutical and vaccine companies, GSK has used its vast resources to create the next generation of healthcare treatments. The company’s innovative new product lineup and expansive list of patent-protected drugs create a wide economic moat, in our opinion.

The magnitude of GSK’s reach is evidenced by a product portfolio that spans several therapeutic classes. The diverse platform insulates the company from problems with any single product. Additionally, the company has developed next-generation drugs in respiratory and HIV areas that should help mitigate both branded and generic competition. We expect GSK to be a major competitor in respiratory, HIV, and vaccines over the next decade.

On the pipeline front, GSK has shifted from its historical strategy of targeting slight enhancements toward true innovation. Also, it is focusing more on oncology and the immune system, with genetic data to help develop the next generation of drugs. The benefits of these strategies are showing up in GSK’s early-stage drugs. We expect this focus will improve approval rates and pricing power. In contrast to respiratory drugs, treatments for cancer indications carry much stronger pricing power with payers.

From a geographic standpoint, GSK is strategically branching out from developed markets into emerging markets. Its vaccine segment positions the firm well in these price-sensitive markets. While this strategy is likely to create some challenges, like the potential legal violations that arose in early 2013 in China, we believe the fast-growing emerging markets will help support long-term growth and diversify cash flows beyond developed markets.

We think GSK’s decision to divest the consumer business is likely to unlock value over the long run. GSK divested Haleon, its consumer group, in July 2022. Given the strong valuations of consumer healthcare companies, we expect this unit will yield a stronger valuation than what was implied within the company’s structure before the divestment.

Read more about GSK stock.

West Pharmaceutical Services

• Morningstar Price/Fair Value: 0.74
• Morningstar Uncertainty Rating: Medium
• Market Capitalization: $16.6 Billion
• Forward Dividend Yield: 0.36%
• Sector: Medical Instruments & Supplies

We think West Pharmaceutical Services, already the global market leader in primary packaging and delivery components for injectable therapeutics, has additional avenues for growth. Its top-line growth is likely to be buoyed by secular trends in injectable drugs, including the rapidly growing GLP-1 obesity drug market. West shares are currently trading at a 26% discount to our fair value estimate of $310.00.

West Pharmaceutical Services is the global market leader in primary packaging and delivery components for injectable therapeutics. Primary packaging has direct contact with the drug product and must be manufactured to ensure stability, purity, and sterility of the drug product in accordance with strict regulatory standards. Because of the mission-critical nature of these components, it is important for customers to trust the quality of manufacturing and design. Key product lines include elastomer components such as stoppers, seals, and plungers, Daikyo Crystal Zenith vials made out of polymer instead of glass, and auto-injectors. Injectables includes not only older modalities like small molecule drugs, insulin, and vaccines but also biologics and GLP-1 obesity drugs.

West has roughly 70% market share of elastomer components for injectable drugs, with the remaining 30% split between Switzerland’s Datwyler and narrow-moat AptarGroup. Additionally, its polymer vials are important containment solutions for biologics, a significant part of the injectables market, because protein therapeutics are incompatible with glass.

West’s strong market share is backed by its reputation for quality and supply chain expertise and reinforced by the high cost of failure for injectable drug packaging, especially biologics. The firm’s scale and diversified supply chain are unparalleled. We believe West will be able to maintain strong market share in the injectables components market.

The main driver of the company’s long-term revenue outlook is the growth of the injectables market, which enjoys secular growth trends due to increasing use of biologics. GLP-1 drugs are also a potential source of upside. Additionally, we think the company will continue to benefit from stricter regulations requiring higher-quality, lower particulate packaging, which is an incentive for customers to upgrade from standard primary components to West’s high value products. We think this mix shift toward higher-margin products will gradually improve the firm’s profit margins, although high customer concentration adds uncertainty to our outlook.

Read more about West Pharmaceutical Services stock.

Coloplast

• Morningstar Price/Fair Value: 0.75
• Morningstar Uncertainty Rating: Medium
• Market Capitalization: $24.1 Billion
• Forward Dividend Yield: 2.94%
• Sector: Medical Instruments & Supplies

Next on our list of affordable defensive stocks, Coloplast earns a wide moat rating primarily based on its ostomy, continence care, and urology businesses. This Danish company has made inroads into the US, one of the largest ostomy care and continence markets. This defensive stock trades 25% below our fair value estimate of $14.10.

Based in Denmark, Coloplast is a leader in global ostomy and continence care. The firm has made inroads into the concentrated urology and fragmented woundcare markets, but it remains a peripheral player there. In contrast, Coloplast has a long record of consistent and meaningful innovation in ostomy and continence care that has led to a dominant position in Europe and growth in the US. Since 2008, the firm has done an admirable job of trimming its cost structure as it focused on profitable growth. After shifting the majority of its production to Hungary, China, and Costa Rica, Coloplast now enjoys a gross margin that beats that of rival Convatec by more than 1,500 basis points. Currently, Coloplast is altering its emphasis to enhance growth by entering new geographies, with an emphasis on the United States.

We’ve long been impressed with the firm’s ability to provide thoughtful, user-friendly improvements to its ostomy and intermittent catheters, which have won over end users. Most recently, Coloplast has upped its game with the incorporation of more sophisticated technology in its supplies and corresponding investment in clinical studies to demonstrate the value of these improvements. For example, new intermittent catheter Luja empties the bladder more fully to reduce the risk of urinary tract infections.

We are less keen on Coloplast’s woundcare segment, where competitive product launches abound. Coloplast’s woundcare portfolio had historically centered on low-tech foam, leaving the firm more vulnerable as advanced woundcare has moved toward hydrofiber and antibacterial products. Further, as with all competitors in this market, Coloplast faces relatively low switching costs for customers. Additionally, the majority of woundcare products are sold to providers (versus directly to patients themselves), which means there is greater pricing pressure from group purchasing organizations and government-sponsored tenders. However, Coloplast’s acquisition of Kerecis puts the firm in a strong position to compete in the fast-growing biologic wound care niche with its unique fish skin therapies.

Read more about Coloplast’s stock.

Zimmer Biomet Holdings

• Morningstar Price/Fair Value: 0.75
• Morningstar Uncertainty Rating: Medium
• Market Capitalization: $22.4 Billion
• Forward Dividend Yield: 0.85%
• Sector: Medical Devices

Zimmer Biomet Holdings is the only medical-device company on our list of the best cheap defensive stocks to buy. The company’s wide moat stems from two major sources: the substantial switching costs for orthopedic surgeons and its intangible assets, including intellectual property that protects the product portfolio. Zimmer stock is trading at a 25% discount to our fair value estimate of $150.00.

Zimmer Biomet is the undisputed king of large-joint reconstruction, and we expect aging baby boomers and improving technology suitable for younger patients to fuel solid demand for large-joint replacement that should offset price declines. Zimmer stumbled into a series of pitfalls in 2016-17, including integration issues, supply and inventory challenges, and quality concerns. The firm’s efforts to turn itself around have been admirable, though the pandemic slowed progress. Now Zimmer is seeking to capitalize on the normalization of procedure volume and placements of its Rosa robot.

Zimmer’s strategy is two-pronged. First, it is focused on cultivating close relationships with orthopedic surgeons who make the brand choice. High switching costs and high-touch service keep the surgeons closely tied to their primary vendor. This close relationship and vendor loyalty also help explain why market share shifts in orthopedic implants are glacial, at best. As long as Zimmer can launch comparable technology within a few years of its rivals, it can remain in a strong competitive position. Nevertheless, we think surgeon influence will inevitably erode, as the practice of medicine changes in response to healthcare reform. Over the long term, it will be more difficult for surgeons to run private practices profitably, and more of them will be open to employment at hospitals.

Second, the firm aims to accelerate growth through innovative products and improved execution. The latter is critical, in our view, to realizing the firm’s potential. Despite a range of structural competitive advantages, Zimmer Biomet in 2016-18 failed to shine in operations, which dragged down returns. Former CEO Bryan Hanson delivered substantial signs of progress. Now, new CEO Ivan Tornos must continue progess on Rosa robot placements (especially in outpatient settings), related consumable product pull-through, and expansion of the firm’s digital portfolio. Additionally, we anticipate the firm will flex its advantage in key areas, including extremities, trauma, and collaborations that involve sensor and digital technologies to improve surgical workflow.

Read more about Zimmer Biomet Holdings stock.

Danaher

• Morningstar Price/Fair Value: 0.78
• Morningstar Uncertainty Rating: Medium
• Market Capitalization: $150.2 Billion
• Forward Dividend Yield: 0.61%
• Sector: Diagnostics & Research

Danaher, a diagnostics and research company, maintains a wide and defensible moat for its diversified set of businesses. We see intangible assets and switching costs as its moat sources. This undervalued defensive stock is currently trading at a 22% discount to our fair value estimate of $270.00.

Through its Danaher Business System, Danaher aims for continuous improvement of its scientific technology portfolio by seeking out attractive markets and then making acquisitions to enter or expand within those fields and also divesting assets that are no longer seen as core, such as the recently divested Veralto operations. After acquisitions, Danaher aims to accelerate core growth at acquired companies by making research and development and marketing-related investments. It also implements lean manufacturing principles and administrative cost controls to boost operating margins. Overall, we appreciate Danaher’s strategic moves, which have pushed it into attractive end markets with strong growth prospects and sticky, recurring revenue streams.

The company’s acquisition-focused strategy has contributed to it becoming a top-five player in the highly fragmented and relatively sticky life science and diagnostic tool markets about 20 years after its first acquisition in the space (Radiometer in 2004). Recent life science and diagnostic acquisitions have included Beckman Coulter, Pall, and Cepheid. In early 2020, Danaher completed the acquisition of GE Biopharma, now called Cytiva, which fills in some gaps for Danaher within the biopharmaceutical development and manufacturing tool market. We find that life science end market particularly attractive given its strong growth trajectory, high margins, and high switching costs associated with regulatory and reproducibility concerns of end users. Management has started making more acquisitions in that space, such as Aldevron, and we would expect more tuck-in acquisitions in this and other end markets.

Danaher also continues to prune its portfolio of businesses. The recent divestiture of its environmental and applied solutions group (now called Veralto) is just the latest for the company that distributed shares in the now publicly traded Fortive Corp (industrials) in 2016 and Envista (dental) in 2019 directly to shareholders. More divestitures are possible in the future, as well.

Read more about Danaher’s stock.

Ambev

• Morningstar Price/Fair Value: 0.78
• Morningstar Uncertainty Rating: Medium
• Market Capitalization: $37.7 Billion
• Forward Dividend Yield: 5.51%
• Sector: Beverages—Brewers

Our list of the best defensive stocks to buy now ends with Ambev, which is 22% undervalued relative to our $3.04 fair value estimate. The largest brewer in Latin America and the Caribbean, Ambev also produces PepsiCo products for Brazil and owns Argentina’s largest brewer, Quinsa. We expect the firm will deliver overall top-line growth as well as gross and EBITDA margin expansion.

In 2000, 3G Capital merged two Brazilian brewers; Brahma and Antarctica, creating Ambev. Like its majority owner InBev, Ambev rolled up brewers throughout Central and South America and today is the largest brewer in Latin America. Ambev has monopolistic positions across regions, including 60% beer market share in Brazil, over 65% in Argentina, El Salvador, and Uruguay, and over 70% in Bolivia. From this, Ambev enjoys significant fixed cost leverage and procurement pricing power. This is reflected in the firm’s excess returns on invested capital and superior working capital management and cash cycles.

Ambev is well-placed to capture top-line growth. Per capita beer consumption across many Latin American countries is relatively lower than developed countries, paving an attractive runway for volume growth. We see long-term premiumization trends taking effect, with consumers trading up to foreign from domestic beers. Here, Ambev can leverage InBev’s strong premium portfolio, which includes Budweiser, Corona, and Michelob Ultra. The likelihood of future transformative deals among large-cap brewers is low due to industry consolidation. However, we can see Ambev broadening its portfolio through bolt-on acquisitions or bottling partnerships.

Ambev utilizes InBev’s digital solutions including BEES, its B2B platform. This enables better connection and data collection across Ambev’s fragmented trade channels. In addition, Ambev is scaling up Ze Delivery, a direct-to-consumer application for home delivery. The food delivery space is competitive, with platforms like iFood also offering liquor delivery. However, we believe the platform gives Ambev an advantage over brewer peers and encourages repeat customers.

We expect the firm can maintain its market share through economic cycles thanks to its cost advantage and broad portfolio. However, we are cautious of potential price competition from large-cap peers entering the attractive Latin American market.

Read more about Ambev stock.

What Are the Morningstar Economic Moat Rating and the Morningstar Fair Value Estimate?

Morningstar thinks that companies with economic moats possess significant advantages that allow them to successfully fend off competitors for a decade or longer. Companies can carve out their economic moats in a variety of ways: by having high switching costs, through strong brand identities, or by possessing economies of scale, to name just a few. Companies that we think can maintain their competitive advantages for at least 10 years earn narrow Economic Moat Ratings; those we think can successfully compete for 20 years or longer earn wide Economic Moat Ratings.

The Morningstar fair value estimate represents what Morningstar analysts think a particular stock is worth. Fair value estimates are rooted in the fundamentals and based on how much cash we think a company can generate in the future, not on fleeting metrics such as recent earnings or current stock price momentum.

How to Find More of the Best Defensive Stocks to Buy

Investors who would like to extend their search for top defensive stocks can do the following:

• Review the holdings included in the Morningstar US Defensive Super Sector Index to find more defensive stocks to investigate further.
• Use the Morningstar Investor screener to build a short list of defensive stocks to research and watch by screening on stocks in the healthcare, utilities, and consumer defensive sectors.