With the Russia-Ukraine war injecting major volatility into the equity market, you might be considering a move into defensive stocks.
Here is a list from Goldman Sachs of defensive names that have a long history of beating the overall market, as cited by CNBC.
Microsoft (MSFT), Johnson and Johnson (JNJ), Visa V, Procter & Gamble (PG), Mastercard (MA), AT&T (T), UnitedHealth (UNH), Verizon (VZ), Coca-Cola (KO) and Merck (MRK).
Morningstar analyst Dan Romanoff is bullish on Microsoft, putting fair value at $352, compared to Thursday’s close of $294.59.
He was impressed with Microsoft’s earnings for the quarter ended Dec. 31, which were released last month.
“Wide-moat Microsoft reported solid results driven by strength in more personal computing, while enterprise-related revenues were more in line with our robust expectations,” Romanoff wrote in a commentary.
“Given the ongoing sell-off in software, we are encouraged by results, which suggest digital transformation-led demand remains intact," he said.
"Guidance [for the current quarter] was ahead on revenue compared to the FactSet consensus as well. Management sees no signals that demand is slowing. Azure remains a bright spot, with Windows and Gaming also performing well.”
As for Johnson & Johnson, its fourth-quarter results, released last month were reassuring.
“[They] einforce our conviction for solid future growth, especially in the drug group (close to 60% of sales) that carries some of the most innovative products and support the firm’s wide moat,” Morningstar analyst Damien Conover wrote in a commentary. “The device group looks well positioned for growth.”
He puts fair value at $167, compared to Thursday’s close of $158.14.
