Core Insights - The healthcare sector has significantly outperformed the broader market, with the S&P 500 Healthcare Sector index rising over 6% since mid-October, compared to a mere 0.05% increase in the S&P 500 index [1] Group 1: Performance Drivers - Major pharmaceutical companies like Novo Nordisk and Eli Lilly have positively impacted the sector by securing a deal with the Trump administration, allowing them to avoid tariffs for three years and gain access to Medicare and Medicaid patients for their GLP-1 drugs [3] - Eli Lilly's third-quarter results exceeded Wall Street expectations, leading to a 27% increase in its share price over the past month, significantly influencing the sector's performance due to its large market cap [4] - Pfizer also entered a similar agreement with the White House, resulting in a 4% increase in its stock price over the past month [5] - AbbVie reported strong quarterly results, with a 6% increase in its stock price, and projected significant future revenues for its drugs [6] - Amgen's stock surged nearly 15% after reporting better-than-expected revenue and earnings, with its cholesterol drug showing promising results [7] Group 2: Market Sentiment - There is a noticeable flight to safety among investors, as concerns about market overvaluation grow, leading to increased interest in defensive stocks like healthcare [8] - The healthcare sector, along with consumer staples and energy, has outperformed technology and consumer discretionary sectors, indicating a shift in investor sentiment [9]

Core Insights - Defensive stocks have been underperforming the market for an extended period, indicating a potential opportunity for investors [1] - Recent signs suggest that defensive stocks may be on the verge of a comeback, making them reasonably valued [1] Summary by Category Market Performance - Defensive stocks have lagged behind the broader market for too long, highlighting a trend that may be reversing [1] Valuation - Current valuations of defensive stocks appear reasonable, suggesting that they may offer attractive investment opportunities [1] Recovery Signs - Emerging indicators point towards a potential recovery in defensive stocks, which could lead to improved performance in the near future [1]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The market is experiencing significant volatility, with 500-point swings in the Dow Jones Industrial Average becoming common [2] - The investment strategy emphasizes defensive stocks with a medium- to long-term horizon [2]

iREIT+HOYA Capital is the premier income-focused investing service on Seeking Alpha. Our focus is on income-producing asset classes that offer the opportunity for sustainable portfolio income , diversification , and inflation hedging . Get started with a Free Two-Week Trial and take a look at our top ideas across our exclusive income-focused portfolios.Warren Buffett has shared many words of wisdom, and while most investors have heard of ‘be greedy when others are fearful’, the one that resonates with me mo ...

Market Trends - The current trend for stocks remains bullish, particularly for technology and AI stocks, despite signs of economic slowdown [1] - The government shutdown may have a larger ripple effect on the economy, contrasting with the government's previous rescue actions in 2021 [2] - Investors are advised to consider adding defensive stocks due to ongoing economic uncertainty [2] Costco Wholesale - Costco has proven its value to consumers and investors, with a steady increase in membership fees and strong sales growth [4][5] - The stock has provided a total return of over 175% due to year-over-year comparable sales growth, buybacks, and dividends [5] - Despite its high share price of over $930, Costco's valuation remains reasonable compared to its historical performance [6] Chevron - Chevron has faced challenges as energy stocks have not performed well for growth investors, with crude oil prices not rising as expected [7] - The company is well-positioned in the LNG market, particularly in Asia, which is expected to drive revenue growth as markets shift away from coal [8] - Analysts forecast earnings growth of over 16.5%, suggesting Chevron stock may be undervalued at around 13x earnings [9] Clorox - Clorox is viewed as a contrarian pick among defensive stocks, with its stock trading near six-year lows due to post-pandemic demand struggles [11] - The company is modernizing operations and improving operating margins, which may present a buying opportunity despite bearish sentiments [12] - Clorox's stock has established a solid technical support base around $118, but it needs to demonstrate revenue and earnings growth to regain investor confidence [13]

Group 1: Market Overview - Resurfaced tensions between the U.S. and China have led to a significant market reaction, with the S&P 500 and Nasdaq falling over 2% due to President Trump's announcement of a 100% tariff on Chinese goods starting November 1 [1] - The tariff decision was influenced by China's aggressive stance in ongoing trade talks, including new export controls on the U.S. [1] Group 2: Defensive Investment Opportunities - In light of market volatility, investors are seeking defensive stocks to safeguard their portfolios [2] - The medical sector has been highlighted as a defensive position, with companies like Gilead Sciences (GILD) and Johnson & Johnson (JNJ) performing well [3] Group 3: Company Performance - Gilead Sciences and Johnson & Johnson are near their 52-week highs, with both stocks up more than 25% year to date, driven by strong drug pipelines [4] - Both companies offer attractive dividends around 2.7%, surpassing the Zacks Medical sector average of 1.47% and the S&P 500 average of 1.1% [5] Group 4: Kroger's Position in Retail - Kroger (KR) is recognized as a defensive investment, with its stock up 13% in 2025 despite earlier tariff concerns [9] - Kroger's stock trades at a reasonable 14X forward earnings multiple and under 2X sales, indicating strong value [9] - The company has shown steady growth, earning an overall "A" VGM Zacks Style Scores grade for Value, Growth, and Momentum, along with an annual dividend yield of over 2% [10] Group 5: Dividend Metrics - Kroger's annual dividend is $1.40 with a yield of 2.07%, and it has a 15.24% annualized dividend growth rate over the last five years [11] - The company's payout ratio stands at 28%, suggesting potential for future dividend increases [10][11] Group 6: Investment Outlook - Gilead Sciences, Johnson & Johnson, and Kroger are positioned as viable defensive investments, currently holding a Zacks Rank 3 (Hold) [12]

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]