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3 Defensive Stocks for the Value Investor

These businesses could make your portfolio stronger

Author's Avatar
Alberto Abaterusso
Sep 05, 2021

Summary

  • Alico Inc, SpartanNash Co and Core-Mark Holding Co Inc have continued to generate earnings and dividends during economic recessions
  • They offer compelling price-earnings ratios compared to the S&P 500
  • Wall Street sell-side analysts have issued positive recommendations for them
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If you want to make your portfolio more resilient so that it will be strong enough to cope with recessions, the following three defensive stocks may be suitable. Except for a few short periods over the last decade, these stocks have continued to generate earnings and dividends during economic recessions as they offer goods and services on which people do not typically cut their spending, not even in times of financial distress.

Furthermore, as of the writing of this article, these stocks offer compelling price-earnings ratios compared to the S&P 500's 35.38, and Wall Street sell-side analysts have issued positive recommendations for them.

Alico Inc

The first stock investors could be interested in is Alico Inc (

ALCO, Financial), a Fort Myers, Florida-based operator of agribusinesses and land management companies.

Over the past five years, the trailing 12-month earnings per diluted share ($3.16 as of the end of the most recent full year) was, on average, fairly flat. The trailing 12-month dividend per share ($0.36 as of the end of the most recent full year) increased by 6% every year.

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GuruFocus assigned a financial strength rating of 4 out of 10 and a profitability rating of 5 out of 10 to the company.

The share price closed at $36.41 on Friday for a market capitalization of $274.02 million, a price-earnings ratio of 5.15 and a 52-week range of $26.55 to $38.58.

On Wall Street, the stock has one recommendation rating of buy with a target price of $44 per share.

SpartanNash Co

The second stock investors could be interested in is SpartanNash Co (

SPTN, Financial), a Grand Rapids, Michigan-based distributor and retailer of grocery products.

Over the past five years, the trailing 12-month earnings per diluted share ($2.12 as of the end of the most recent full year) was, on average, flat. The trailing 12-month dividend per share ($0.77 as of the end of the most recent full year) increased by 7.6% every year.

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GuruFocus assigned a financial strength rating of 5 out of 10 and a profitability rating of 6 out of 10 to the company.

The stock traded at $21.25 at close on Friday for a market capitalization of $763.69 million, a price-earnings ratio of 11.13 and a 52-week range of $15.75 to $23.45.

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $22.67 per share.

Core-Mark Holding Co Inc

The third stock investors could be interested in is Core-Mark Holding Co Inc (

CORE, Financial), a food products distributor.

The company saw its trailing 12-month earnings per diluted share ($1.39 as of the end of the most recent full year) increase by 4.8% every year over the past five years. The dividend per share for the trailing 12 months ($0.49 as of the end of the most recent full year) increased by 11.9% per annum over the past five years.

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GuruFocus assigned a financial strength rating of 5 out of 10 and a profitability rating of 7 out of 10 to the company.

The share price was $45.65 at close on Friday for a market capitalization of $2.06 billion, a price-earnings ratio of 31.27 and a 52-week range of $26.84 to $47.83.

On Wall Street, the stock has a median recommendation rating of buy with an average target price of $46.50 per share.

Disclosure: I have no positions in any security mentioned.

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Disclosures

I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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