Economic risks are piling up, and investors are starting to wonder whether shifting their focus to capital preservation is a good idea right now.First, the Federal Reserve cut its benchmark federal funds rate by 0.25% in mid-September, with economic sentiment indicating further rate cuts by the end of 2025.Then, a government shutdown went into effect on October 1, meaning federal funds are put on hold for an undetermined amount of time and layoffs from federal government jobs are likely. This has economists ...

Core Viewpoint - Chubb is considered a potentially undervalued stock despite its solid performance history, with a forward P/E ratio under 13 and consistent revenue growth expected [7]. Group 1: Company Performance - Chubb has shown high revenue growth for an established business, maintaining profitability and consistently paying and raising dividends [1]. - A $1,000 investment in Chubb stock made in 2022 would now be worth $1,428, which is lower than the $1,516 return from the S&P 500 index [3]. - Historically, Chubb has outperformed the stock market benchmark due to its reliable quarterly payouts and constant profitability [5]. Group 2: Market Trends - The stock has faced challenges this year as investors shifted from defensive stocks like Chubb to riskier assets, driven by a thriving stock market and easing trade tensions [2][6]. - The demand for higher returns from riskier investments has negatively impacted Chubb's stock performance, leading to its current status as a bargain [6]. Group 3: Future Outlook - Analysts project Chubb's revenue to rise by over 4% in full-year 2025, indicating positive growth prospects [7].

Core Viewpoint - Chubb's latest earnings report, while beating analyst estimates, did not impress investors, leading to a more than 4% drop in stock price on the day of the announcement [1][5] Financial Performance - Chubb's net premiums written increased by 6% year-over-year, reaching just under $14.2 billion [2] - The company's net income was slightly below $3 billion, up from $2.2 billion in the same quarter last year [4] - Core operating income rose to $6.14 per share, compared to $5.38 per share in the previous year [4] - Analysts had estimated revenue of $14.16 billion and core operating income of $5.96 per share [4] Management Commentary - Management attributed the improvements in performance to strength across various markets, highlighting the diversified nature of the company [5] Market Reaction - The negative market reaction is attributed more to external factors rather than dissatisfaction with Chubb's performance, as investors are currently moving away from defensive stocks [5]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The investment strategy emphasizes stocks that generate robust cash flow consistently rather than those that are frequently in the news [2] - The approach is defensive in nature, targeting medium- to long-term investment horizons [2] Group 2 - The article does not provide specific financial advice or recommendations, emphasizing the importance of due diligence by readers [4][5] - There is a disclosure regarding a beneficial long position in AMCR shares, indicating a vested interest in the stock [3]

Group 1 - The market is currently in a risk-on mode, with the S&P 500 and Nasdaq Composite Index nearing all-time highs [2] - The focus is on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] Group 2 - The article emphasizes the importance of defensive stocks for medium- to long-term investment horizons [2]

Industry Overview - The U.S. utilities sector has seen a significant rise in 2025, driven by macroeconomic, regulatory, and market-specific dynamics that have renewed investor interest [2] - The S&P 500 Utilities Select Sector SPDR (XLU) has advanced by 9% as of May 2025, indicating strong performance in the sector [2] - Falling treasury yields have enhanced the attractiveness of dividend-paying stocks, including utilities, as government bond yields become less competitive [3] Market Dynamics - The appeal of defensive stocks has increased due to ongoing concerns about inflation, potential Federal Reserve rate adjustments, and geopolitical instability [2] - The imposition of 25% tariffs on steel and aluminum imports has raised costs for essential materials in utility infrastructure, impacting supply chains and project expenses [4] - Despite tariff-related market uncertainties, investors continue to seek refuge in utility stocks, which are perceived as defensive havens [4] Company Highlights - Southwest Gas Holdings, Inc. (SWX) is a natural gas distributor with an expected earnings growth rate of 17.7% for the current year, and its earnings estimate has improved by 4.8% over the past 60 days [7] - New Jersey Resources Corporation (NJR) is also a natural gas distributor, with an expected earnings growth rate of 9.9% and a 2.9% improvement in earnings estimates over the past 60 days [8] - Telenor ASA (TELNY), a global telecommunications company, has an expected earnings growth rate of 17.1% and a 3.8% improvement in earnings estimates over the past 60 days [9] Investment Considerations - Utility stocks are generally viewed as long-term buy-and-hold options due to their regular dividend declarations and higher dividend yields compared to other equities [5] - The stocks of SWX, NJR, and TELNY benefit from investor rotation into stable, dividend-paying utility stocks, with strong growth and value indicators reflected in their VGM Scores and Zacks Ranks [10]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The service offers a free two-week trial to explore top ideas across exclusive income-focused portfolios [1] Group 2 - There is potential value in exploring underfollowed stocks that have experienced price declines for various reasons [2] - The emphasis is on selecting quality stocks with a defensive nature and a medium- to long-term investment horizon [2]

Core Viewpoint - The S&P 500 index has declined by 10% in 2025 due to erratic trade policies, recession fears, and high interest rates, creating opportunities for investors to find value in stocks like Dollar General and Vici Properties [1] Group 1: Dollar General - Dollar General's shares have increased by 23% year to date, significantly outperforming the market [2] - The company benefits from low exposure to tariffs, with only 10% of its merchandise affected, compared to 50% for Dollar Tree and nearly 100% for mainstream retailers [3] - The business model focuses on low-priced consumer essentials, which remain in demand during recessions [3] - Dollar General locates stores in rural and neglected urban areas, minimizing rent and labor costs, and offers a no-frills shopping experience [4] - The stock trades at a forward price-to-earnings (P/E) multiple of 17, below the S&P 500 average of 20, with a dividend yield of 2.5% [5] Group 2: Vici Properties - Vici Properties operates in the gambling industry but focuses on real estate, which provides a more stable investment opportunity [6] - The company utilizes triple-net leases, where tenants cover rent and other expenses, maximizing cash flow safety [7] - As a real estate investment trust (REIT), Vici returns a generous 5.3% dividend yield to shareholders [8] - Vici owns iconic properties on the Las Vegas Strip, including Caesars Palace and MGM Grand, and is diversifying into non-casino properties [9] - In 2024, Vici's revenue grew by 6.6% year over year to $976.1 million, with a 4.2% increase in dividend payout, marking the seventh consecutive annual increase since its IPO [10]

Core Viewpoint - Coca-Cola's stock has shown resilience with a recent increase of about 1.3% amid a broader market rally following a 90-day pause on tariffs, although it has only dropped about 6% since the tariff sell-off, which is in line with the average decline for consumer staples stocks [1][2]. Group 1: Market Position and Analyst Sentiment - Analysts suggest a defensive investment strategy, with Coca-Cola being recognized as a top defensive stock, partly due to its association with Warren Buffett's Berkshire Hathaway [2][3]. - Ken Fisher, a notable fund manager, is bullish on Coca-Cola, predicting that value will outperform growth in 2025, although the company has not fully met expectations as a value stock [3]. - Coca-Cola's stock is currently rated as a Buy by analysts, with a 12-month price forecast of $74.24, indicating a potential upside of 4.05% from its current price of $71.35 [8]. Group 2: Business Model and Financial Performance - Coca-Cola operates an asset-light business model by selling syrup and concentrate to bottling partners, which contributes to a strong operating margin of 29.8%, comparable to Apple's 31.5% [5][6]. - The company is adapting to changing consumer preferences by expanding its portfolio beyond traditional soft drinks to include sparkling water, bottled water, coffee, and protein drinks, positioning itself for growth in a health-conscious market [7]. Group 3: Investment Considerations - Despite its defensive reputation, Coca-Cola's stock is considered expensive, trading at 23.5 times forward earnings, and its dividend yield is not growing as quickly as some investors desire [11]. - The emergence of GLP-1 drugs poses a risk to Coca-Cola's traditional beverage business, which may not be fully reflected in the stock's current pricing [11].

I am not an investment advisor. This article is for informational purposes and does not constitute as financial advice. Readers are encouraged and expected to perform due diligence and draw their own conclusions prior to making any investment decisions. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seek ...