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Goldman Sachs Highlights 23 Defensive Stocks for Growth Concerns

NeutralLow impact
IWB$416.77 −1.09%XLV$176.71 −0.27%XLP$87.62 1.08%RPRX$60.96 2.25%TSN$54.90 1.59%CVS$92.36 −0.24%

Goldman Sachs strategist Ben Snider has highlighted 23 stocks in the iShares Russell 1000 ETF (AMEX:IWB) across the health care and consumer staples sectors. The selection aims to support investors seeking protection against downside risks caused by a deteriorating growth outlook.

The screening focuses on businesses combining low share-price volatility with high free-cash-flow yields compared to their industry peers. While the firm's main economic forecast anticipates real income growth accelerating in 2027, this defensive list provides quality exposure if broader economic conditions continue to soften.

Market performance showed mixed results across defensive sectors. The State Street Consumer Staples Select Sector SPDR ETF (AMEX:XLP) rose 1.08%, whereas the State Street Health Care Select Sector SPDR ETF (AMEX:XLV) fell 0.27%. Among individual stocks, Royalty Pharma Plc Class A (NASDAQ:RPRX) advanced 2.25% to $60.96 and Tyson Foods, Inc. Class A (NYSE:TSN) gained 1.59% to $54.90, while CVS Health Corporation (NYSE:CVS) dipped 0.24% to $92.36.

Key points

  • Goldman Sachs strategist Ben Snider selected 23 defensive stocks from the Russell 1000 index.
  • The screen targets companies in health care and consumer staples with low volatility and high free-cash-flow yields.
  • The baseline forecast expects real income growth to accelerate in 2027, driven by lower-income consumers.
  • Sector funds moved in opposite directions, with consumer staples rising 1.08% while health care slipped 0.27%.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

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Questions and answers

What sectors did Goldman Sachs focus on for defensive stocks?

Goldman Sachs highlighted 23 stocks within the health care and consumer staples sectors selected from the Russell 1000 index.

What criteria were used to select these quality-growth stocks?

The screening process targeted companies combining relatively low share-price volatility with high free-cash-flow yields compared to sector peers.

What is Goldman Sachs' baseline economic forecast for 2027?

Goldman Sachs expects real income growth to accelerate in 2027, particularly benefiting lower-income consumers and supporting consumer-facing stocks.