Why is Coca-Cola (KO) considered a defensive stock?

Because demand for its beverages remains relatively stable regardless of economic conditions, making its earnings more predictable and less volatile.

Are these stocks suitable for long-term investment?

They may be suitable for investors seeking stability and steady returns, but their potential returns may be lower than high-growth stocks.

Low-Beta Defensive Stocks to Buy Amid Rising Geopolitical Tensions

Renewed U.S.-Iran tensions and higher oil prices are fueling market volatility, increasing demand for low-beta defensive stocks. According to a Zacks report, Coca-Cola (KO) and three other stocks stand out as stable options.

July 13, 2026

2 min read

Source: Zacks

Renewed geopolitical tensions between the U.S. and Iran, coupled with rising oil prices, are driving market volatility and pushing investors toward low-beta defensive stocks that offer relative stability.

According to a report from Zacks, four low-beta defensive stocks stand out in this environment, including Coca-Cola (KO). These stocks have low beta coefficients, meaning they are less sensitive to overall market swings.

The Stocks Mentioned

FE (FirstEnergy): An electric utility company.
AEE (Ameren): An electric utility company.
KO (Coca-Cola): A global beverage company.
NYT (New York Times): A media company.

Why These Stocks?

As geopolitical uncertainty rises, investors tend to favor companies that provide essential products and services less affected by economic cycles. Coca-Cola, for instance, enjoys steady global demand for its beverages, making it an attractive defensive pick.

What This Means for Investors

These stocks may suit investors looking to reduce portfolio risk during periods of high volatility. However, investors should note that potential returns may be lower compared to high-growth stocks.

Frequently Asked Questions

They are stocks of companies that provide essential products or services (e.g., food, utilities) and have a beta coefficient below 1, meaning they are less sensitive to overall market fluctuations.

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