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Buy These 4 Low-Beta Defensive Stocks to Dodge Ongoing Market Volatility
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Key Takeaways
ETR, EVRG, DEO and LW offer defensive exposure amid persistent Wall Street volatility.
ETR and EVRG benefit from utility operations, with beta of 0.40 and 0.49, respectively.
DEO and LW offer earnings growth prospects, and dividend yields of 2.48% and 2.81%, respectively.
Volatility continues on Wall Street, with November starting on a disappointing note as tech stocks tumbled again, with investors’ concerns growing over the potential of artificial intelligence (AI) stocks.
AI stocks have largely been responsible for the broader market rally over the past two years, but disappointing quarterly results from a batch of tech giants have reignited fears of an AI bubble burst.
The Federal Reserve held interest rates steady after its October policy meeting and consumer confidence improved marginally last month, but the overall sentiment remains low as inflation remains stubbornly high.
Given this situation, it would be wise to buy defensive stocks from the utility and consumer staples sector, namely Entergy Corporation (ETR - Free Report) , Evergy, Inc. (EVRG - Free Report) , Diageo plc (DEO - Free Report) and Lamb Weston Holdings, Inc. (LW - Free Report) .
Wall Street Volatility Continues
The tech-heavy Nasdaq slid 1.1% on Monday, the first trading day of the month, to finish at 25,164.32 points after ending in the red in the prior month. Investors have been weighing in the potential of AI-related stocks and rotating out of the tech space following disappointing quarterly results from some big players.
Monday’s decline came as the Nasdaq ended October 5.3% lower, recording its worst month since March 2025.
The Fed left interest rates unchanged at its current range of 3.75-4% at the end of its two-day FOMC meeting last week but didn’t rule out chances of future rate hikes. Inflation remains elevated as surging oil prices due to the ongoing Middle East conflict have resulted in higher commodity prices.
The consumer price index (CPI) jumped 0.6% month over month in September, after advancing 0.4% in August. Year over year, CPI climbed 3.7% in September after advancing 3.4% in August. Consumer confidence improved marginally in October. The consumer confidence index rose to 91.7 in October from an upwardly revised 84.2 in the prior month, the Conference Board said. However, it still remains sharply low from the year-ago levels.
The Federal Reserve is likely to go for another interest rate hike before the end of this year as it struggles to tame inflation. This could further impact the spending power of consumers.
4 Low-Beta Defensive Stocks With Upside
Entergy Corporation
Entergy Corporation is primarily engaged in electric power production and retail distribution of power. ETR has a 30,000-megawatt (MW) generating capacity, including more than 8,000 MW of nuclear fuel capacity.
Entergy Corporation has an expected earnings growth rate of 12.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last 60 days. ETR has a beta of 0.4 and a current dividend yield of 2.32%. Entergy Corporation has a Zacks Rank #2 (Buy).
Evergy
Evergy, Inc., through its operating subsidiaries Kansas City Power & Light Company, Evergy Metro, Inc., and Evergy Missouri West, Inc., provides clean, safe and reliable energy to more than 1.7 million customers in Kansas and Missouri. EVRG has 15,600 megawatts of owned generating capacity and renewable power purchase agreements.
Evergy has an expected earnings growth rate of 11.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the last 60 days. EVRG currently carries a Zacks Rank #2. Evergy has a beta of 0.49 and a current dividend yield of 3.24%.
Diageo plc
Diageo plc operates in approximately 180 countries and is involved in producing, distilling, brewing, bottling, packaging, as well as distributing spirits, wine and beer. DEO offers its products under globally recognized flagship brands, such as Smirnoff, Johnnie Walker, Captain Morgan, Baileys, Buchanan’s, J&B, Tanqueray and Guinness.
Diageo has an expected earnings growth rate of 2.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4% over the last 60 days. The company has a beta of 0.54 and a current dividend yield of 2.48%. Currently, DEO sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Lamb Weston Holdings
Lamb Weston Holdings, Inc. is a leading global manufacturer, marketer and distributor of value-added frozen potato products, particularly French fries, and provides a range of appetizers. LW, along with its joint venture allies, is the top frozen potato products supplier in North America, while it also operates internationally, with a robust and growing presence in emerging markets.
Lamb Weston’s expected earnings growth rate for the current year is 7.6%. The Zacks Consensus Estimate for the current-year earnings has improved 5.9% over the past 60 days. LW currently has a Zacks Rank #1. Lamb Weston has a beta of 0.49 and a current dividend yield of 2.81%.
View the Zacks #1 Rank List
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Buy These 4 Low-Beta Defensive Stocks to Dodge Ongoing Market Volatility
Key Takeaways
Volatility continues on Wall Street, with November starting on a disappointing note as tech stocks tumbled again, with investors’ concerns growing over the potential of artificial intelligence (AI) stocks.
AI stocks have largely been responsible for the broader market rally over the past two years, but disappointing quarterly results from a batch of tech giants have reignited fears of an AI bubble burst.
The Federal Reserve held interest rates steady after its October policy meeting and consumer confidence improved marginally last month, but the overall sentiment remains low as inflation remains stubbornly high.
Given this situation, it would be wise to buy defensive stocks from the utility and consumer staples sector, namely Entergy Corporation (ETR - Free Report) , Evergy, Inc. (EVRG - Free Report) , Diageo plc (DEO - Free Report) and Lamb Weston Holdings, Inc. (LW - Free Report) .
Wall Street Volatility Continues
The tech-heavy Nasdaq slid 1.1% on Monday, the first trading day of the month, to finish at 25,164.32 points after ending in the red in the prior month. Investors have been weighing in the potential of AI-related stocks and rotating out of the tech space following disappointing quarterly results from some big players.
Monday’s decline came as the Nasdaq ended October 5.3% lower, recording its worst month since March 2025.
The Fed left interest rates unchanged at its current range of 3.75-4% at the end of its two-day FOMC meeting last week but didn’t rule out chances of future rate hikes. Inflation remains elevated as surging oil prices due to the ongoing Middle East conflict have resulted in higher commodity prices.
The consumer price index (CPI) jumped 0.6% month over month in September, after advancing 0.4% in August. Year over year, CPI climbed 3.7% in September after advancing 3.4% in August. Consumer confidence improved marginally in October. The consumer confidence index rose to 91.7 in October from an upwardly revised 84.2 in the prior month, the Conference Board said. However, it still remains sharply low from the year-ago levels.
The Federal Reserve is likely to go for another interest rate hike before the end of this year as it struggles to tame inflation. This could further impact the spending power of consumers.
4 Low-Beta Defensive Stocks With Upside
Entergy Corporation
Entergy Corporation is primarily engaged in electric power production and retail distribution of power. ETR has a 30,000-megawatt (MW) generating capacity, including more than 8,000 MW of nuclear fuel capacity.
Entergy Corporation has an expected earnings growth rate of 12.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last 60 days. ETR has a beta of 0.4 and a current dividend yield of 2.32%. Entergy Corporation has a Zacks Rank #2 (Buy).
Evergy
Evergy, Inc., through its operating subsidiaries Kansas City Power & Light Company, Evergy Metro, Inc., and Evergy Missouri West, Inc., provides clean, safe and reliable energy to more than 1.7 million customers in Kansas and Missouri. EVRG has 15,600 megawatts of owned generating capacity and renewable power purchase agreements.
Evergy has an expected earnings growth rate of 11.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the last 60 days. EVRG currently carries a Zacks Rank #2. Evergy has a beta of 0.49 and a current dividend yield of 3.24%.
Diageo plc
Diageo plc operates in approximately 180 countries and is involved in producing, distilling, brewing, bottling, packaging, as well as distributing spirits, wine and beer. DEO offers its products under globally recognized flagship brands, such as Smirnoff, Johnnie Walker, Captain Morgan, Baileys, Buchanan’s, J&B, Tanqueray and Guinness.
Diageo has an expected earnings growth rate of 2.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4% over the last 60 days. The company has a beta of 0.54 and a current dividend yield of 2.48%. Currently, DEO sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Lamb Weston Holdings
Lamb Weston Holdings, Inc. is a leading global manufacturer, marketer and distributor of value-added frozen potato products, particularly French fries, and provides a range of appetizers. LW, along with its joint venture allies, is the top frozen potato products supplier in North America, while it also operates internationally, with a robust and growing presence in emerging markets.
Lamb Weston’s expected earnings growth rate for the current year is 7.6%. The Zacks Consensus Estimate for the current-year earnings has improved 5.9% over the past 60 days. LW currently has a Zacks Rank #1. Lamb Weston has a beta of 0.49 and a current dividend yield of 2.81%.