The defense sector is expected to deliver steady growth throughout the decade, with increasing global defense spending and geopolitical tensions driving demand. This presents an opportunity for investors in undervalued defense stocks.
For long-term investors seeking stability and growth, defensive stocks offer a strong strategy. These stocks can provide steady growth and protection during market downturns. Here are three top defensive stocks to consider for your portfolio right now.
Apple (AAPL)
Apple’s (NASDAQ:AAPL) stock is surging with significant momentum. It recently reached an all-time high of around $200 on a split-adjusted basis, becoming the only publicly traded company with a $3 trillion market capitalization, making it the world’s most valuable company. The strong demand for its iconic iPhone and the upcoming launch of a new augmented reality headset is driving this success.
Apple’s stock experienced a slight increase on Wednesday after a Bloomberg News report mentioned the company’s internal development of an artificial intelligence large language model. The move indicates Apple’s interest in AI technology for potential integration into upcoming products. Although it’s typically referred to as “machine learning,” the company already has a prototype chatbot they’re calling “Apple GPT.” Over the past year, there has been growing interest in large language models, an AI technology that can generate human-like text or code. Access to the chatbot is restricted within Apple, and there are speculations that the company may make a significant AI announcement next year. AAPL stock has surged 56% this year, making it attractive to long-term investors.
Berkshire Hathaway (BRK-B)
Warren Buffett’s Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) stands as an impressive force in the investment world. With a market cap of over $740 billion, it has the potential to reach the $1 trillion milestone, signifying substantial growth for the company. On July 17, Berkshire Hathaway stock reached a high point of $523,500 per share, hitting $524,820 earlier that day. Warren Buffett sold 70% of the firm’s Activision Blizzard (NASDAQ:ATVI) stake amid the company’s remarkable growth and the proposed acquisition by Microsoft (NASDAQ:MSFT).
Berkshire Hathaway has been actively buying back its own shares, with $4.4 billion repurchased in the first quarter alone. Previously, the ability to repurchase stock was limited, but since 2017, the board allows repurchases if Buffett and Munger believe the stock is undervalued. With significant cash reserves of over $25 billion, Berkshire has the means to continue repurchasing shares.
Additionally, Berkshire Hathaway’s appeal lies in its strong track record and diverse holdings, providing stability amid market volatility. While the exact timing of reaching the $1 trillion club remains uncertain, the company’s well-curated portfolio is steadily progressing toward this significant milestone, benefiting current and potential investors alike.
Restaurant Brands (QSR)
In Q1, Restaurant Brands (NYSE:QSR) exceeded earnings expectations, reporting a revenue increase of 9.7% to $1.59 billion, surpassing estimates by $30 million. Earnings per share were 75 cents, beating predictions by 11 cents. Despite inflation challenges, the company showed strong growth in comparable and system-wide sales, making a positive start to the year.
Indeed, QSR stock has maintained its gains, exhibiting a strong uptrend on the charts. The price surged significantly over the past months, trading above key moving averages and showing potential for further growth beyond $100. Buyers are accumulating, indicating a bullish trend.
Restaurant Brands International, Inc. is a holding company that operates quick-service restaurants under three segments: Tim Hortons, Burger King, and Popeyes. The company is based in Toronto, Canada, and its stock was trading at $77.78 with a 0.67% intraday gain and a market cap of $35.161 billion at the time of writing. The trading volume has been on the incline as of late, suggesting increased bullishness from large investors in recent days. Perhaps small money investors would do well to follow the big money into this name.
On the date of publication, Chris MacDonald has a LONG position in AAPL, BRK-B, QSR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
