4 Low-Beta Defensive Stocks to Buy as Consumer Sentiment Plummets

Core Insights - Consumer sentiment has significantly declined, reaching a record low of 51 in November, down from 53.6 in October, and down 29% year-over-year [4][5] - The uncertainty surrounding the Federal Reserve's monetary policy and the economy's health has led investors to favor low-beta, defensive stocks, particularly in the consumer staples sector [1][2] Consumer Sentiment - The University of Michigan's Surveys of Consumers reported a final reading of 51 for consumer sentiment in November, slightly up from a preliminary reading of 50.3 [4] - The decline in consumer sentiment is attributed to a slowing labor market and high inflation, which pressures consumer spending [6] - Long-term inflation expectations decreased from 3.9% in October to 3.4% in November [5] Investment Focus - In the current market environment, investors are advised to consider low-beta stocks with high dividend yields and favorable Zacks Ranks to mitigate market volatility [2][3] - Recommended stocks include: - Entergy Corporation (ETR): Expected earnings growth rate of 6.9%, Zacks Rank 2, beta of 0.63, and a dividend yield of 2.73% [9] - CenterPoint Energy, Inc. (CNP): Expected earnings growth rate of 9.3%, Zacks Rank 2, beta of 0.60, and a dividend yield of 2.22% [13] - John B. Sanfilippo & Son, Inc. (JBSS): Expected earnings growth rate of 18.1%, Zacks Rank 1, beta of 0.37, and a dividend yield of 1.28% [15] - Universal Corporation (UVV): Expected earnings growth rate of 2.4%, Zacks Rank 2, beta of 0.73, and a dividend yield of 6.19% [16]