Defensive Stocks to Buy in a Volatile Market


Defensive stocks might help you through the present tumultuous market.

Market volatility has returned as the Federal Reserve continues to raise interest rates at its most recent meeting. 

Below 30,000 was the Dow Jones Industrial Average. putting the S&P 500 in bear market territory.

Consider the two stocks listed below.

1. Intuitive Surgical Stock

 Intuitive Surgical Stock (NASDAQ:ISRG) is an American medical robotics firm that creates and produces robotic technologies to enhance clinical results. Its most successful product is the Da Vinci surgical system, which is increasingly used in operating rooms. Medical equipment stocks are well positioned to expand over the next eight years. The medical robotics industry is predicted to develop gradually at 16% per year over the same time, generating $44 billion in sales. Despite the more significant market sell-off, the stock remains strong, now down 15% vs. the broader market, which is down more than 20% on average.

On average, the medical business has stronger long-term economics. More people need medical care significantly as the world average age rises. Furthermore, the worldwide healthcare business is progressively investing in technology to enhance global medical results, which only benefits firms like Intuitive Surgical. The global expansion could help maintain momentum, particularly as China, Japan, and Asia remain at the forefront of demand. Developing economies and increased levels of investment assist them in shifting away from old surgical equipment and toward modern-day gadgets.

ISRG’s revenues have increased by 16% over the last five years, while profits per share have increased by 17%. The company’s valuation remains high, with a P/E of 48x and a projected P/E of 33x.

2. NRG Energy Stock

NRG Energy (NYSE:NRG) is an unregulated energy utility business. Its business relies on an integrated electricity firm that operates in Texas, the East, and the West of the United States. The corporation produces electricity and associated goods and services and sells and delivers to about 6 million residential, commercial, industrial, and wholesale clients. It produces power by the use of natural gas, coal, oil, solar, nuclear, and battery storage.

NRG Energy has been boosting its investments in its smart grid to provide its customers greater control over their energy use. Nonetheless, despite its best efforts, energy costs are rising, particularly in the residential energy market. NRG energy continues to be vital to the places it serves, which implies revenues should be more constant and less variable than in other industries. Results have been robust in the first few quarters, and places like Texas, where it runs a big portion of its business, have experienced an extremely hot summer, which could help push profits even higher in the coming quarters.

Despite the uncertain macroeconomic situation, the utility business remains solid, making it excellent for individuals seeking to combat volatility.

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About the author: Okoro Chinedu is a freelance writer specializing in health and finance, with a keen interest in cryptocurrency and blockchain technology. He has worked in content creation and digital journalism. Since 2019, he has written on various online platforms, and his work has been recognized by several important media sources and specialists in finance and crypto. In addition to writing, Chinedu enjoys reading, playing football, posing as a medical student, and traveling.