Due to the essentiality of healthcare, the medical sector can provide a defensive hedge against market uncertainty, and investors may be eyeing AbbVie (ABBV)  and HCA Healthcare (HCA)  stock ahead of their Q1 reports on Friday, April 25.Being the largest non-governmental operator of acute care hospitals in the United States, HCA shares are up a very respectable +11% year to date, with pharmaceutical giant AbbVie’s stock virtually flat but outperforming the benchmark S&P 500’s 10% decline as well. That said, ...

Core Viewpoint - The S&P 500 and Nasdaq have experienced declines due to ongoing tariff discussions in the U.S., raising inflation concerns, while Kroger and Albertsons stocks remain resilient as defensive investments [1][2]. Market Performance - The Nasdaq is down 6% year-to-date in 2025, while the S&P 500 has decreased by 1%. Albertsons' stock has increased by 7% to $21 per share, and Kroger's shares are up 5% to $63 [3]. Valuation Metrics - Kroger and Albertsons are trading below the optimal sales level of less than 2X, with Kroger at 0.3X and Albertsons at 0.15X. Kroger's forward earnings multiple is 13.1X, while Albertsons is at 9X [4]. Growth Outlook - Kroger's total sales are expected to decline by 2% in fiscal 2025 but are projected to stabilize and rise by 1% in FY26 to $148.78 billion. Annual earnings are anticipated to drop by 6% to $4.46 per share in 2025, with a forecasted rebound of 7% to $4.77 in FY26 [7]. - Albertsons' revenue is expected to grow by 1% in FY25 and by another 3% in FY26 to $82.58 billion. However, annual earnings are projected to decrease to $2.29 per share, with a slight recovery to $2.34 in FY26 [10]. Dividend Yields - Both Kroger and Albertsons offer attractive dividend yields, with Albertsons at 2.89% and Kroger at 2.05%, surpassing the S&P 500 average of 1.23% [11]. Investment Consideration - Currently, both Kroger and Albertsons hold a Zacks Rank 3 (Hold), making them potential defensive options in a portfolio amid macroeconomic uncertainties, although there may be better growth prospects in other essential operation stocks [14].