Bullet Proof Your Portfolio: 3 Must-Have Defensive Stocks for 2023

Stocks to buy

Are you feeling the brunt of the market uncertainty in your retirement portfolio?

Rebalancing your portfolio may be necessary at this stage. Removing exposure from high-risk stocks and tilting them toward high-growth potential or defensive stocks ensures capital growth and preservation. And it paves the way to a more comfortable retirement. With potential recession news, continued high inflation, growing oil prices, and higher-than-average interest rates, it’s best to look at defensive sectors.

For example, utilities, healthcare, and non-cyclical industries cushion investor portfolios because these businesses are staples regardless of economic cycles. They are considered safe and steady haven assets during times of uncertainty.

Let’s explore this environment with these three defensive stocks for questionable times ahead.

United Therapeutics Corporation (UTHR)

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First choice is a pharmaceutical company, United Therapeutics Corporation (NASDAQ:UTHR).

The company is best known for its development in treatments for cardiovascular disorders like arterial hypertension and infectious diseases. UTHR is well-known for being a public benefit corporation due to its mission of helping people live healthier lives and improving the healthcare system.

Besides UTHR’s company values and mission, it also boasts double-digit revenue growth and reached its highest quarterly revenue in most recently. Its total revenues grew 28% year over year (YOY) to $596.5 million. The company also beat EPS analyst estimates by 18.82%.

With its continued growth and sustainability-leaning values, it’s no surprise that other long-term investors see it as one of the best defensive stocks worth holding.

Archer-Daniels-Midland Company (ADM)

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Archer-Daniels-Midland Company (NYSE:ADM) is a world leader in nutrition that runs food processing services in agriculture, carbohydrate solutions, and nutrition segments.

Also, the company has the largest oilseed business and corn processing company. ADM is well-known to income investors as a Dividend King, thanks to it’s 50 years of dividend increases. The company’s payouts can help stabilize portfolios regardless of the economic state.

Once again, Archer-Daniels-Midland has delivered excellent earnings results, with Q2 earnings beating analyst estimates by 18.87%. Although the company’s Carbohydrates Solutions segment delivered notable results, sales numbers fell short from last year.

Furthermore, its business segments of agricultural storage and transportation grew significantly this year, presenting a possible investment area for the company. Despite the slightly lackluster performance, ADM’s Dividend King status makes it worth la second look. And with the growing global population and increasing demands, ADM investors may be looking at a bright future.

Consolidated Water (CWCO)

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Last on the defensive stocks list is a company that recently received a massive spike in its price performance. Consolidated Water Co. Ltd. (NASDAQ:CWCO) is a water utility company offering advanced water treatment, supply, and distribution.

CWCO supplies water to its clients in the U.S., Bahamas, British Virgin Islands, and Cayman Islands. They focus operations on the desalinization of seawater, followed by its distribution to customers in areas without accessible potable water.

Consolidated Water reported a record quarterly performance of revenue growth by 110% YOY, and EPS beat expectations by 113.64%. CWCO is optimistic about continued growth as Grand Cayman continues to push towards recovery and its continuous project bidding for multi-year U.S. contracts. Investors have been quick to jump on CWCO while it’s been cheap. In turn, this brought its stock price up from ending 2022 at $14.80 to trading at $31 on September 15, 2023.

A utility company with excellent prospects is worth holding onto for the long term.

On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.

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