Why are Costco and Exxon considered defensive?

Costco sells essential everyday goods, and Exxon provides indispensable energy, so demand for their products remains stable even during market downturns.

Are defensive stocks suitable for long-term investing?

They can be suitable as part of a diversified portfolio, but they may not deliver high growth during bull markets.

Costco, Exxon, and 17 Other Defensive Stocks for a Market Drop

With a potential 10%+ market correction looming, Barron's highlights 19 defensive stocks that can hold their ground or even gain. Costco and Exxon are among the top picks.

June 24, 2026

2 min read

Source: Barrons.com

As the possibility of a garden-variety market correction—a 10% drop or more—remains on the table, Barron's has published a report identifying 19 stocks that can hold their ground or even gain when the market falls. Among them are Costco (COST) and Exxon Mobil (XOM).

Why These Stocks Are Defensive

Defensive stocks belong to essential sectors like consumer staples, energy, and healthcare, where demand remains steady even during economic downturns. Costco, a retail giant selling everyday goods, and Exxon, a key energy supplier, fit this profile.

Notable Defensive Stocks

Beyond Costco and Exxon, the list includes:

Procter & Gamble (PG) – personal care products.
Johnson & Johnson (JNJ) – healthcare.
PepsiCo (PEP) – beverages and snacks.
Altria (MO) – tobacco.
Walmart (WMT) – retail.

What This Means for Investors

Defensive stocks are not risk-free, but they offer a relative buffer against volatility. They may outperform during market declines but often lag during strong rallies. Investors seeking stability may find temporary shelter in these names.

Frequently Asked Questions

Defensive stocks are shares of companies in essential sectors like consumer staples, energy, and healthcare, where demand remains steady even during recessions.

Found this useful? Share it

This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.