Are These 3 Leading Defensive Stocks Too Crowded Heading Into 2026?

Core Insights - Defensive consumer staples stocks are becoming increasingly popular among investors during market volatility, as they provide essential goods regardless of economic conditions [2] - Walmart Inc. has emerged as a strong performer in the defensive sector, with its stock up 23.8%, although it is trading at a premium valuation of approximately 39 times earnings [3] - Costco Wholesale Corp. has seen a decline of 5.5% in its stock price, currently trading at 46 times earnings, which is a discount compared to its historical average [3] - Procter & Gamble is down over 14% due to competition from private label brands, but it is trading at around 21 times earnings, indicating a potentially attractive valuation [4] - The outlook for these defensive stocks varies depending on economic conditions, with analysts divided on whether the U.S. economy will experience growth, a slowdown, or stagnation [4] Company Summaries - Walmart has been the standout performer in the defensive category, but investors are paying a premium for its consistent performance [6] - Costco's recent stock pullback does not necessarily make it a bargain, as it is still priced for strong execution despite a challenging year [6] - Procter & Gamble appears to be reasonably valued, but ongoing pressure from private-label brands may limit its growth potential if the economy slows [6]