Top 12 Undervalued Consumer Defensive Stocks to Watch Right Now
When the economy starts to look uncertain, consumer defensive stocks are like the umbrellas you want to hold on to ☂️ — they keep your portfolio dry even when the market rains. These are the companies behind everyday essentials people continue to buy, whether times are good or tough.
So far in 2025, the Morningstar U.S. Consumer Defensive Index has gained 3.99%, lagging behind the broader market’s 14.74%, meaning several strong defensive names are currently undervalued and ripe for smart investors’ attention.
Here are the 12 Best Consumer Defensive Stocks to Buy Now (October 2025) — according to Morningstar analysts
1️⃣ Kraft Heinz (KHC) – Deep Value & Efficiency Drive
Trading at 50% below fair value, Kraft Heinz remains the cheapest on the list. With its massive food portfolio (Heinz sauces, Kraft spreads, etc.), the company is restructuring into two separate public entities to refocus on growth. It’s pushing innovation and marketing to refresh its brands, while prioritizing profitable, long-term growth. Dividend yield stands at 6.24%.
2️⃣ Campbell’s (CPB) – Beyond the Soup Bowl
Over 150 years strong, Campbell’s is now much more than soup — with snacks like Goldfish and Pepperidge Farm driving sales. Trading 48% below fair value, the company continues optimizing operations, leveraging tech and AI to innovate efficiently. Dividend yield: 4.97%.
3️⃣ Kenvue (KVUE) – Pure-Play Health Powerhouse
Spun off from Johnson & Johnson, Kenvue owns trusted brands like Tylenol, Listerine, and Zyrtec. The stock trades 38% below fair value, supported by steady global demand in consumer health. The company is enhancing efficiency through automation while targeting emerging markets. Dividend yield: 5.46%.
4️⃣ Constellation Brands (STZ) – Beer Giant With Premium Edge
The parent of Modelo and Corona dominates the premium beer market with over 70% share in the U.S. import segment. Trading 36% below fair value, Constellation continues to benefit from premiumization trends and product innovation. Dividend yield: 2.91%.
5️⃣ Ambev (ABEV) – Latin America’s Brewing Titan
With an 8.03% dividend yield, Ambev is the dominant brewer in Latin America, boasting over 60% market share in Brazil. The company benefits from cost efficiency, digital innovations like BEES (a B2B platform), and long-term premiumization trends.
6️⃣ Brown-Forman (BF.B) – Heritage Meets Innovation
Home to Jack Daniel’s and Woodford Reserve, this whiskey giant trades 30% below fair value. With over 150 years of experience and strong brand equity, Brown-Forman continues to tap into the “drink better, not more” trend. Dividend yield: 3.23%.
7️⃣ Clorox (CLX) – Clean Strength and Brand Loyalty
Clorox continues to show resilience despite inflation and cybersecurity challenges. The company invests heavily in innovation and marketing (~13% of sales), ensuring its products remain household staples. Currently 29% below fair value, with a 4.20% yield.
8️⃣ The Boston Beer Company (SAM) – Crafted for Growth
Makers of Samuel Adams, Truly Hard Seltzer, and Twisted Tea, Boston Beer thrives in premium malt beverages. Trading 28% below fair value, it focuses on adapting fast to consumer preferences. Despite short-term seltzer weakness, it’s positioned for long-term relevance.
9️⃣ Diageo (DEO) – World’s Spirits Leader
Owning iconic names like Johnnie Walker, Smirnoff, and Guinness, Diageo remains a global beverage powerhouse. Trading 25% below fair value, it’s benefiting from premiumization — as consumers increasingly “drink less but better.” Dividend yield: 4.23%.
Lamb Weston (LW) – Frozen Potato King
North America’s largest frozen potato producer (think French fries ), Lamb Weston trades 19% below fair value. Despite short-term challenges, global demand for fries remains strong, and long-term growth looks promising. Dividend yield: 2.29%.
11️⃣ General Mills (GIS) – Trusted Pantry Favorite
Makers of Cheerios, Nature Valley, and Blue Buffalo, General Mills trades 18% below fair value. Its strong brand portfolio and investments in pet food and snacks position it for steady performance. Dividend yield: 4.96%.
12️⃣ Estée Lauder (EL) – Beauty Resilience and Global Reach
The luxury beauty house behind MAC, Clinique, and La Mer trades 18% below fair value. Despite a soft China market, Estée Lauder is expanding digital sales and entering new markets. Dividend yield: 1.42%.
Final Thoughts
Consumer defensive stocks may not always be flashy, but they’re built for stability and endurance. With these 12 undervalued giants, investors can find safety — and opportunity — even in uncertain markets .
When the economy starts to look uncertain, consumer defensive stocks are like the umbrellas you want to hold on to ☂️ — they keep your portfolio dry even when the market rains. These are the companies behind everyday essentials people continue to buy, whether times are good or tough.
So far in 2025, the Morningstar U.S. Consumer Defensive Index has gained 3.99%, lagging behind the broader market’s 14.74%, meaning several strong defensive names are currently undervalued and ripe for smart investors’ attention.
Here are the 12 Best Consumer Defensive Stocks to Buy Now (October 2025) — according to Morningstar analysts
1️⃣ Kraft Heinz (KHC) – Deep Value & Efficiency Drive
Trading at 50% below fair value, Kraft Heinz remains the cheapest on the list. With its massive food portfolio (Heinz sauces, Kraft spreads, etc.), the company is restructuring into two separate public entities to refocus on growth. It’s pushing innovation and marketing to refresh its brands, while prioritizing profitable, long-term growth. Dividend yield stands at 6.24%.
2️⃣ Campbell’s (CPB) – Beyond the Soup Bowl
Over 150 years strong, Campbell’s is now much more than soup — with snacks like Goldfish and Pepperidge Farm driving sales. Trading 48% below fair value, the company continues optimizing operations, leveraging tech and AI to innovate efficiently. Dividend yield: 4.97%.
3️⃣ Kenvue (KVUE) – Pure-Play Health Powerhouse
Spun off from Johnson & Johnson, Kenvue owns trusted brands like Tylenol, Listerine, and Zyrtec. The stock trades 38% below fair value, supported by steady global demand in consumer health. The company is enhancing efficiency through automation while targeting emerging markets. Dividend yield: 5.46%.
4️⃣ Constellation Brands (STZ) – Beer Giant With Premium Edge
The parent of Modelo and Corona dominates the premium beer market with over 70% share in the U.S. import segment. Trading 36% below fair value, Constellation continues to benefit from premiumization trends and product innovation. Dividend yield: 2.91%.
5️⃣ Ambev (ABEV) – Latin America’s Brewing Titan
With an 8.03% dividend yield, Ambev is the dominant brewer in Latin America, boasting over 60% market share in Brazil. The company benefits from cost efficiency, digital innovations like BEES (a B2B platform), and long-term premiumization trends.
6️⃣ Brown-Forman (BF.B) – Heritage Meets Innovation
Home to Jack Daniel’s and Woodford Reserve, this whiskey giant trades 30% below fair value. With over 150 years of experience and strong brand equity, Brown-Forman continues to tap into the “drink better, not more” trend. Dividend yield: 3.23%.
7️⃣ Clorox (CLX) – Clean Strength and Brand Loyalty
Clorox continues to show resilience despite inflation and cybersecurity challenges. The company invests heavily in innovation and marketing (~13% of sales), ensuring its products remain household staples. Currently 29% below fair value, with a 4.20% yield.
8️⃣ The Boston Beer Company (SAM) – Crafted for Growth
Makers of Samuel Adams, Truly Hard Seltzer, and Twisted Tea, Boston Beer thrives in premium malt beverages. Trading 28% below fair value, it focuses on adapting fast to consumer preferences. Despite short-term seltzer weakness, it’s positioned for long-term relevance.
9️⃣ Diageo (DEO) – World’s Spirits Leader
Owning iconic names like Johnnie Walker, Smirnoff, and Guinness, Diageo remains a global beverage powerhouse. Trading 25% below fair value, it’s benefiting from premiumization — as consumers increasingly “drink less but better.” Dividend yield: 4.23%.
Lamb Weston (LW) – Frozen Potato King
North America’s largest frozen potato producer (think French fries ), Lamb Weston trades 19% below fair value. Despite short-term challenges, global demand for fries remains strong, and long-term growth looks promising. Dividend yield: 2.29%.
11️⃣ General Mills (GIS) – Trusted Pantry Favorite
Makers of Cheerios, Nature Valley, and Blue Buffalo, General Mills trades 18% below fair value. Its strong brand portfolio and investments in pet food and snacks position it for steady performance. Dividend yield: 4.96%.
12️⃣ Estée Lauder (EL) – Beauty Resilience and Global Reach
The luxury beauty house behind MAC, Clinique, and La Mer trades 18% below fair value. Despite a soft China market, Estée Lauder is expanding digital sales and entering new markets. Dividend yield: 1.42%.
Final Thoughts
Consumer defensive stocks may not always be flashy, but they’re built for stability and endurance. With these 12 undervalued giants, investors can find safety — and opportunity — even in uncertain markets .