We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3 Defensive Stocks to Watch as Trade Tensions Resurface: GILD, JNJ, KR
Read MoreHide Full Article
Resurfaced tensions between the U.S. and China caught the market off guard in Friday’s trading session, with the S&P 500 and Nasdaq falling over 2% on news that President Trump plans to impose an additional 100% tariff on Chinese goods starting November 1st.
Notably, President Trump stated the move was prompted by China taking an “extraordinarily aggressive” position in what had been ongoing trade talks by announcing new export controls on the U.S. that will take effect next month.
With investors being on edge as the world’s two largest economies go head-to-head again, seeking out stocks that can offer defensive safety in the portfolio may be necessary.
Top Performing Medical Stocks
The medical sector had been at the forefront of defensive positions earlier in the year when President Trump’s Liberation Day Tariffs rocked the broader market, with Gilead Sciences (GILD - Free Report) and Johnson & Johnson (JNJ - Free Report) being able to hold onto some of these exhilarating gains.
GILD and JNJ shares are hovering near their 52-week highs and are still up more than +25% year to date, respectively. Enthusiasm for their drug pipelines has been magnified by increased probability, as Gilead Sciences has a stronghold in developing treatments for HIV and liver diseases, while Johnson & Johnson has a robust portfolio across immunology, oncology, neuroscience, and other therapeutic areas.
Image Source: Zacks Investment Research
Also attracting investors have been Gilead Sciences and Johnson & Johnson’s respectable dividends, which are both around 2.7%, topping the Zacks Medical sector’s average of 1.47% and the S&P 500’s average of 1.1%.
Image Source: Zacks Investment Research
Kroger’s Value as a Retail Grocery Leader
As one of the largest grocery chains in the U.S., investors have shown a tendency to flock to Kroger's (KR - Free Report) stock for defensive safety as well. While Kroger stock lost some of its YTD gains when tariff concerns subsided, KR is still up a respectable +13% in 2025.
Amid a resurgence in market volatility, Kroger’s value may take center stage with KR trading at a reasonable 14X forward earnings multiple and well under the preferred level of less than 2X sales.
Image Source: Zacks Investment Research
Seeing steady top and bottom line expansion, Kroger stock stands out with an overall “A” VGM Zacks Style Scores grade for Value, Growth, and Momentum. Plus, Kroger also offers an annual dividend yield of over 2%.
Even better, Kroger’s 28% payout ratio suggests there is plenty of room to raise its dividend in the future, with KR having an impressive annualized dividend growth rate of 15.24% in the last five years.
Image Source: Zacks Investment Research
Bottom Line
Building their reputations as viable defensive investments, Gilead Sciences, Johnson & Johnson, and Kroger stock all land a Zacks Rank #3 (Hold) at the moment. That said, these stocks will likely attract investors if markets continue to pull back, as their operations are deemed essential regardless of economic uncertainty.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
3 Defensive Stocks to Watch as Trade Tensions Resurface: GILD, JNJ, KR
Resurfaced tensions between the U.S. and China caught the market off guard in Friday’s trading session, with the S&P 500 and Nasdaq falling over 2% on news that President Trump plans to impose an additional 100% tariff on Chinese goods starting November 1st.
Notably, President Trump stated the move was prompted by China taking an “extraordinarily aggressive” position in what had been ongoing trade talks by announcing new export controls on the U.S. that will take effect next month.
With investors being on edge as the world’s two largest economies go head-to-head again, seeking out stocks that can offer defensive safety in the portfolio may be necessary.
Top Performing Medical Stocks
The medical sector had been at the forefront of defensive positions earlier in the year when President Trump’s Liberation Day Tariffs rocked the broader market, with Gilead Sciences (GILD - Free Report) and Johnson & Johnson (JNJ - Free Report) being able to hold onto some of these exhilarating gains.
GILD and JNJ shares are hovering near their 52-week highs and are still up more than +25% year to date, respectively. Enthusiasm for their drug pipelines has been magnified by increased probability, as Gilead Sciences has a stronghold in developing treatments for HIV and liver diseases, while Johnson & Johnson has a robust portfolio across immunology, oncology, neuroscience, and other therapeutic areas.
Image Source: Zacks Investment Research
Also attracting investors have been Gilead Sciences and Johnson & Johnson’s respectable dividends, which are both around 2.7%, topping the Zacks Medical sector’s average of 1.47% and the S&P 500’s average of 1.1%.
Image Source: Zacks Investment Research
Kroger’s Value as a Retail Grocery Leader
As one of the largest grocery chains in the U.S., investors have shown a tendency to flock to Kroger's (KR - Free Report) stock for defensive safety as well. While Kroger stock lost some of its YTD gains when tariff concerns subsided, KR is still up a respectable +13% in 2025.
Amid a resurgence in market volatility, Kroger’s value may take center stage with KR trading at a reasonable 14X forward earnings multiple and well under the preferred level of less than 2X sales.
Image Source: Zacks Investment Research
Seeing steady top and bottom line expansion, Kroger stock stands out with an overall “A” VGM Zacks Style Scores grade for Value, Growth, and Momentum. Plus, Kroger also offers an annual dividend yield of over 2%.
Even better, Kroger’s 28% payout ratio suggests there is plenty of room to raise its dividend in the future, with KR having an impressive annualized dividend growth rate of 15.24% in the last five years.
Image Source: Zacks Investment Research
Bottom Line
Building their reputations as viable defensive investments, Gilead Sciences, Johnson & Johnson, and Kroger stock all land a Zacks Rank #3 (Hold) at the moment. That said, these stocks will likely attract investors if markets continue to pull back, as their operations are deemed essential regardless of economic uncertainty.