5 Low-Beta Defensive Stocks to Bank on as Consumer Confidence Shrinks

Americans aren’t that confident about the economy’s health anymore, as they remain unsure about the impact of tariffs. Moreover, a weak jobs report continues to raise concerns about a lackluster labor market.Although the Federal Reserve has indicated that a rate cut is possible in September, consumers are still struggling with inflation. Given the uncertainty, it would be wise to invest in safe-haven defensive stocks from the utility and consumer staples sectors. These include Atmos Energy Corporation ATO, Fortis, Inc. FTS, Northwest Natural Holding Company NWN, Ingredion Incorporated INGR and Carriage Services, Inc. CSV. Each of these stocks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.These stocks are from the low-beta category (beta greater than 0 but less than 1). Hence, the recommended approach is to invest in low-beta stocks with a high dividend yield and a favorable Zacks Rank.Consumer Confidence Drops FurtherU.S. consumer confidence dropped to 97.4 in August from 98.7 in the month earlier, marking a decline of 1.3 points, the Conference Board said last week. The short-term expectations for income, business conditions and employment also fell 1.2 points to 74.8. Any reading below 80 indicates a higher risk of the economy slipping into a recession.Also, consumers’ assessment of the current conditions weakened, with the index falling to 131.2 in August from 132.8 in July. Several factors have been denting consumer confidence over the past few months. Concerns first grew about a weakening economy after President Donald Trump imposed sweeping tariffs on all trading partners of the United States.The tariffs were halted, and negotiations were made to reach fresh trade deals. However, the worries continue as the new sets of tariffs are also high and are impacting prices. Higher prices have raised concerns that inflation might escalate again, slowing the economy.Also, a weak labor market has been fanning recession fears. Layoffs and the unemployment rate are still low, but slow job additions don’t paint a rosy picture. These worries have been denting consumers’ confidence, which could make the market volatile.5 Low-Beta Defensive Stocks With Growth PotentialAtmos Energy CorporationAtmos Energy Corporation, along with its subsidiaries, is engaged in the regulated natural gas distribution and storage business. ATO serves nearly 3.3 million customers in more than 1,400 communities across eight states from the Blue Ridge Mountains in the East to the Rocky Mountains in the West. Atmos Energyoperates more than 73,000 miles of transmission and distribution lines as well as 5,700 miles of interstate pipelines.Atmos Energy has an expected earnings growth rate of 7.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.2% over the last 60 days. ATO has a beta of 0.75 and a current dividend yield of 2.09%.Fortis, Inc.Fortis, Inc.i s engaged in the electric and gas utility business. FTS offers regulated utilities comprising electric and gas, as well as engages in non-regulated hydroelectric operations. Fortis operates primarily in Canada, the United States and the Caribbean.Fortis has an expected earnings growth rate of 4.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.8% over the last 60 days. FTS has a beta of 0.48 and a current dividend yield of 3.57%.Northwest Natural Holding CompanyNorthwest Natural Holding Company builds and maintains natural gas distribution systems, as well as invests in natural gas pipeline projects through its subsidiaries. NWN serves residential, commercial and industrial customers primarily in the United States, Canada and Service Territory.Northwest Natural Holding Company has an expected earnings growth rate of 25.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.4% over the last 60 days. Northwest Natural Holding Company has a beta of 0.59 and a current dividend yield of 4.72%.Ingredion IncorporatedIngredion Incorporated is an ingredients solutions provider specializing in nature-based sweeteners, starches and nutrition ingredients. INGR serves diverse sectors in food, beverage, brewing, pharmaceuticals and other industries.Ingredion’s expected earnings growth rate for the current year is 6.7%. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the past 60 days. INGR has a beta of 0.77 and a current dividend yield of 2.47%.Carriage ServicesCarriage Services is a leading provider of death care services and products in the United States. CSV provides a complete range of services relating to funerals, burials and cremations, including the use of funeral homes and motor vehicles, the performance of cemetery interment services and the management and maintenance of cemetery grounds.Carriage Services has an expected earnings growth rate of 23.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.5% over the past 60 days. CSV has a beta of 0.86 and a current dividend yield of 1.03%Higher. Faster. Sooner. Buy These Stocks NowA small number of stocks are primed for a breakout, and you have a chance to get in before they take off.At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We’ve combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month.You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days.Download the report free now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Atmos Energy Corporation (ATO): Free Stock Analysis Report Northwest Natural Gas Company (NWN): Free Stock Analysis Report Ingredion Incorporated (INGR): Free Stock Analysis Report Carriage Services, Inc. (CSV): Free Stock Analysis Report Fortis (FTS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks