Investors are turning to Kroger and Albertsons as defensive plays amidst market volatility.

From Nasdaq: 2025-03-06 18:26:00

Stock markets faced a setback on Thursday, with the S&P 500 and Nasdaq dropping over 2% due to tariff concerns. Kroger and Albertsons stocks remained strong as defensive plays amidst the volatility.

Investors are turning to essential goods companies like Kroger and Albertsons during economic uncertainty. Both stocks have seen modest gains YTD, with Kroger at $63 and Albertsons at $21 per share.

Despite their attractive valuations, Kroger and Albertsons have faced growth challenges. Kroger’s sales are expected to dip in FY25, while Albertsons is projected to see a slight increase in revenue.

Both Kroger and Albertsons offer high dividend yields, surpassing the S&P 500 average. While their growth prospects may be limited, they provide defensive safety in a portfolio.

Kroger and Albertsons stock hold a Zacks Rank #3. Consider them for defensive plays, but explore other options for better growth prospects. Check out Zacks’ portfolio services for more insights and opportunities.



Read more at Nasdaq: Buy Kroger or Albertsons Stock Amid Recent Market Volatility?