Three Defensive Stocks That May Shield Portfolios from a Downturn in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Source: Marketbeat
Economic Forecasting Challenges: Economic forecasts are increasingly uncertain despite access to more data, with a notable example being JP Morgan's prediction of a 35% chance of a U.S. recession in 2026 due to persistent inflation and a sluggish labor market.
Investment Strategies: Investors are advised to consider defensive stocks, particularly in the technology sector, as a hedge against potential economic downturns, with Microsoft being highlighted for its resilience and growth potential.
General Mills and REITs: General Mills is seen as a defensive stock with stable revenue projections, while real estate investment trusts (REITs) like Public Storage are also considered attractive due to their pricing power and strong balance sheets.
Market Recommendations: Analysts are identifying five stocks that are recommended for purchase now, suggesting they could provide stability and growth in the face of potential economic challenges in 2026.
Get Free Real-Time Notifications for Any Stock
Monitor tickers like PSA with instant alerts to capture every critical market movement.
Sign up for free to build your custom watchlist and receive professional-grade stock notifications.
Analyst Views on PSA
Wall Street analysts forecast PSA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PSA is 311.58 USD with a low forecast of 276.00 USD and a high forecast of 349.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
5 Buy
9 Hold
0 Sell
Moderate Buy
Current: 273.860
Low
276.00
Averages
311.58
High
349.00
Current: 273.860
Low
276.00
Averages
311.58
High
349.00
About PSA
Public Storage is a real estate investment trust. Its principal business activities include the ownership and operation of self-storage facilities that offer storage spaces for lease, generally on a month-to-month basis, for personal and business use, and other related operations, such as tenant reinsurance, merchandise sales, third party management, and bridge lending to third-party self-storage owners, as well as the acquisition and development of additional self-storage space. Its Self-Storage Operations segment includes the aggregated rental operations from the self-storage facilities it owns from same store facilities, acquired facilities, newly developed and expanded facilities, and other non-same store facilities. Its Ancillary Operations segment includes the combined operations of its tenant reinsurance, merchandise sales, and third-party property management operating segments. It owned interests in over 3,085 self-storage facilities located in 40 states in the United States.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Wall Street Analysts Adjust Ratings on Key Stocks
- Rating Downgrade: Wolfe Research analyst Andrew Rosivach downgraded Public Storage (NYSE:PSA) from Outperform to Peer Perform, reflecting a cautious outlook on the company's future growth, with shares closing at $282.63 on Friday.
- Price Target Adjustment: Morgan Stanley analyst Hamza Fodderwala downgraded Varonis Systems Inc (NASDAQ:VRNS) from Overweight to Equal-Weight and lowered the price target from $44 to $41, indicating concerns about its profitability, with shares closing at $34.95 on Friday.
- Rating Change: Canaccord Genuity analyst Brian McNamara downgraded Lifetime Brands Inc (NASDAQ:LCUT) from Buy to Hold and cut the price target from $4 to $3.5, reflecting a conservative outlook on its market performance, with shares closing at $3.89 on Friday.
- Rating and Price Target Adjustment: DA Davidson analyst Peter Winter downgraded BOK Financial Corp (NASDAQ:BOKF) from Buy to Neutral while raising the price target from $125 to $135, indicating confidence in its future stability, with shares closing at $132.12 on Friday.
Continue Reading
Top Real Estate Firms with Strong EPS Revisions: DLR and PLD Rated A+
- EPS Revision Grades: Digital Realty Trust (DLR) and Prologis (PLD) both received an A+ rating from analysts, indicating strong confidence in their near-term performance, which may attract more investor interest.
- Market Confidence Boost: Weyerhaeuser (WY) and Crown Castle (CCI) also earned an A rating, suggesting that market expectations for their earnings are improving, potentially driving their stock prices higher.
- Investor Attention: Simon Property Group (SPG) and Host Hotels & Resorts (HST) received A ratings as well, reflecting analysts' optimistic outlook on their future performance, which could draw more institutional investors' attention.
- Overall Trend: Kimco Realty (KIM), Public Storage (PSA), and Welltower (WELL) all achieved A ratings, indicating a positive trend across the real estate sector, potentially providing more investment opportunities for investors.
Continue Reading