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3 Top Defensive Stocks to Watch in August 2021

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Should Investors Watch These Top Defensive Stocks in August 2021?

As investors evaluate this week’s mixed batch of economic data, defensive stocks are staying put in the stock market for now. After all, companies in this sector often provide vital services. What this means is that their offerings are in demand regardless of the state of the economy. In this case, we can take a look at the restaurants, consumer goods, infrastructure, and healthcare industries to name a few. Given the current state of the US economy, some might argue that defensive stocks could be in the spotlight.

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Adding to the recent slowdown in reopening trade, the coronavirus pandemic continues to spread around the world. Earlier today, the Centers for Disease Control and Prevention (CDC) provided a stark update on the delta variant of the coronavirus. According to the Center for Disease Control, it isAs contagious as chickenpox“could”Makes the elderly sicker“Despite the packed vaccination. If anything, some would argue that this could persevere to roughly the current economic recovery. As such, investors looking to diversify may already be turning to this segment of the stock market today.”

On the whole, investors are confused when it comes to defensive stocks now. For starters, like healthcare giants Pfizer (NYSE: PFE) continues to meet the needs of the masses, providing vaccines and daily health supplies. Another industry noteworthy now would be basic consumer goods such as Starbucks (NASDAQ: SBUX). In particular, the company recently reported earnings per share of $1.01 on revenue of $7.5 billion, topping the consensus estimates on both parties. To be sure, the short-term path to reopening trade appears uncertain at the moment. As a result, some investors may consider diversifying their investment portfolios with some defensive choices. If you’re one of them, check out these three headlines this week.

Best Defensive Stocks to Watch in August

ChargePoint Inc.

charge point is an electric vehicle infrastructure company headquartered in Campbell, California. In fact, it operates one of the largest online networks of independently owned EV charging stations. With over a decade of experience, ChargePoint is facilitating mass electric vehicle (EV) adoption through its commendable charging network in the world. It has a powerful leadership position in North America and a growing presence in Europe. The company says it has a well-established lightweight business model with growth in direct proportion to the rapidly increasing penetration of electric vehicles. CHPT stock is currently trading at $23.65 as of Friday’s close.

Last week, the company announced that it had signed a definitive agreement to acquire it, an e-mobility provider with a leading European freight software platform. This deal comes because Europe is among the fastest growing markets for electric vehicle sales worldwide. ChargePoint will acquire the e-mobility company for a whole purchase price of approximately €250 million ($296.38 million). The transaction is expected to close this year, subject to the satisfaction of regulatory approvals and other usual closing conditions.

In June, the company also announced a partnership with Mercedes-Benz USA for a unused standard in electric vehicle charging in North America. Dubbed Mercedes me Charge, it will launch with the all-unused EQS electric sedan, and will be available on all coming Mercedes-EQ Mobility EQ products. The company says drivers with a Mercedes me Charge account will have access to the largest selection of places to charge in North America, which includes nearly 60,000 public places. Given the excitement surrounding the company, would you consider adding CHPT stock to your watchlist?

Defensive Stocks (CHPT Stock)Source: TD Ameritrade TOS

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T-Mobile US Inc.

T-Mobile It is a telecom company that provides a cutting edge 4G LTE network and a transformative 5G network nationwide. In fact, it’s one of the first and largest nationwide 5G networks in the country, reaching more cities and towns in the United States than anyone else. It provides customers with unparalleled value and quality, by offering the best conceivable service experience. TMUS stock ended Friday’s trading session at $144.02 a share, up more than 35% in the former year.

On July 29, 2021, the company announced its financial statements for the second quarter of 2021. T-Mobile says it delivered leading postpaid additions and record service net revenue. In detail, net customer additions for the quarter came in at 1.4 million to a record lofty of 104.8 million. Furthermore, whole revenue for the quarter was $20 billion, an increase of 13% year over year. The company also reported net income for the quarter of $978 million, an 8-fold increase from final year. It also continues to expand the reach of 5G, which covers 305 million people and 1.7 million square miles.

The company has also improved network integration, increasing the synergies of its mergers with the Sprint it acquired final year. Nearly 80% of Sprint customer traffic is now transmitted on the T-Mobile network. Given the impressive financial data, the company is raising its 2021 forecast across the board for the second successive quarter. It expects net postpaid customers to add 5 million to 5.3 million, up from the previous guidance of 4.4 million to 4.9 million. All things considered, will you be watching TMUS stock?

Top Defensive Stocks (TMUS Stock)Source: TD Ameritrade TOS

[Read More] The best telecom inventory to watch now

Brands International Inc. Restaurant

Another player in the defense industry to consider now would be Brands International Inc. Restaurant (QSR). The Canadian company boasts a portfolio that includes many of the major names in today’s rapid food space. These include but are not limited to the likes of Burger King, Popeyes, and Tim Hortons. According to QSR, the company facilitates approximately $31 billion in system-wide sales annually. It achieves this through its global network of more than 27,000 restaurants operating in more than 100 countries.

Now, QSR stock is currently trading at $68.19 per share as of Friday’s closing bell. The company’s shares are up more than 3% as of today’s opening bell on account of its latest financial report for the fourth quarter earlier today. Considering this, QSR reported earnings per share of $0.77 on revenue of $1.44 billion for the quarter. Notably, this exceeds Wall Street estimates of $0.61 and $1.36 billion, respectively. The company also saw a remarkable 60% year-over-year increase in its digital sales across its Big Three brands.

Altogether, CEO Jose Seal said: “We are encouraged by the momentum in our business – including increases in sales driven by quality menu items, rapid adoption of our digital channels by our guests, and acceleration in the opening of unused restaurants around the world by franchisees who believe strongly in our brands and business model.If all that wasn’t enough, the company will also increase its share repurchase license to $1 billion over the next two years. QSR appears to be gaining momentum and is confident to move forward on its growth trajectory. Will this make QSR a better defensive stock for you?

QSR StockSource: TD Ameritrade TOS

The opinions and opinions expressed here are those of the author and do not necessarily reflect the views and opinions of Nasdaq, Inc.


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