3 Best Defensive Stocks Right Now

Now is the time so start broadening out your portfolio into some more defensive stock picks. Indeed, a recent report by Bank of America shows that investors are already starting to take a potential downturn very seriously. The report notes that the top five performing sectors over the last three months have all been defensive — namely, staples, utilities, REITs, health care and telecommunications.

Let’s dive in now:

1. Costco (Nasdaq:COST)

Five-star Oppenheimer analyst Rupesh Parikh (Profile & Recommendations) has just lifted his Costco price target from $210 to $250. The reason? “We believe COST remains best positioned in our entire food and grocery coverage to deliver sustainable top- and bottom-line performance” explains Parikh.

He continues: “Ongoing market share gains in the grocery category coupled with continued momentum in the company’s more discretionary offerings in a still strong consumer backdrop should help to sustain a mid-single-digit type comp trajectory.”

Most encouragingly, Parikh sees sustainable top and bottom line delivery even in a competitive retail backdrop. And it seems like the Street agrees. Right now ten analysts have published Buy ratings on the stock in the last three months.

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View COST Price Target and Analyst Rating Details.

2. T Mobile US (Nasdaq:TMUS)

T-Mobile is the third-largest wireless carrier in the US. According to top Oppenheimer analyst Timothy Horan (Profile & Recommendations), TMUS has captured 100% of the industry growth since 2013. He has just reiterated his Buy rating with a bullish $90 price target (37% upside potential).

Excitingly, Horan is optimistic about the prospects of the ‘transformational’ $26 billion TMUS/ Sprint merger going ahead. He writes “we see an 80% chance of regulatory approval given the pro-consumer/investment/jobs focus that scale drives, but with concessions.”

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