For Immediate Release
Chicago, IL – April 15, 2026 – Stocks in this week’s article are Atmos Energy Corp. ATO, American States Water Co. AWR, Keurig Dr Pepper Inc. KDP and Entergy Corp. ETR.
4 Low-Beta Defensive Stocks Giving Refuge Amid Sky-High Inflation
Inflation rose in March to its highest level in nearly a year, as the conflict with Iran sent energy prices soaring. The jump was expected, but, at the same time, it poses a major challenge for the Federal Reserve in deciding its future monetary policy path after having paused rate cuts this year.
Although inflation rose marginally if energy and food costs are excluded, the ongoing geopolitical tensions are likely to keep markets volatile. Also, the fragile two-week ceasefire between the two warring nations is already seen as crumbling, with no peace deal reached.
Given this scenario, we recommend buying five defensive stocks from the utility and consumer staples sectors, namely, Atmos Energy Corp., American States Water Co., Keurig Dr Pepper Inc. and Entergy Corp.
These stocks have seen positive earnings estimate revisions in the past 60 days, carry a Zacks Rank #2 (Buy), and are set for solid returns. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Inflation Surges Amid Iran Conflict
The consumer price index (CPI) jumped 0.9% sequentially in March from February’s rise of 2.4%, the Commerce Department reported last week. This takes the annual inflation rate to 3.3% and, the highest level since May 2024. Inflation rose 0.3% in February.
Also, this is the highest monthly increase since June 2022. Although the reading came in line with analysts’ expectations, the jump now makes the Federal Reserve’s job even more challenging, as it is not sharply higher than the central bank’s 2% target.
February’s jump was primarily fueled by a 10.9% surge in energy costs. Core CPI, which excludes volatile food and energy, rose a meager 0.2% month over month in March and 2.6% from the year-ago levels. Both the readings were 0.1% below the consensus estimate.
The U.S.-Iran conflict took a toll on stocks throughout March, and the broader market started making a rebound only last week after both countries announced a two-week ceasefire and the reopening of the Strait of Hormuz, a key passage for the majority of the global oil shipments.
However, the tensions are far from over as the United States started a sweeping naval blockade of the Strait of Hormuz earlier this week after peace talks with Iran failed. Oil prices have also been volatile over the past few days and remain sharply about $100 per barrel.
The jump in inflation has also dashed hopes of an interest rate cut anytime soon, with several Fed officials now considering a rate hike. It is unlikely that oil prices will stabilize until a peace deal between the two warring nations is reached.
4 Low-Beta Defensive Stocks with Growth Potential
Atmos Energy Corp.
Atmos Energy, 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 Energy operates 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 10.5% 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 0.69 and a current dividend yield of 2.10%.
American States Water Company
American States Water, along with its subsidiaries, provides fresh water, wastewater services and electricity to its customers in the United States. AWR principally works through its two major subsidiaries — Golden State Water Company and American States Utility Services.
American States Water Company has an expected earnings growth rate of 6.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.2% over the last 60 days. AWR has a beta of 0.66 and a current dividend yield of 2.54%.
Keurig Dr Pepper Inc.
Keurig Dr Pepper is a prominent integrated brand owner, manufacturer and distributor of beverages across the United States, Canada, Mexico and the Caribbean. KDP’s extensive portfolio features well-known brands such as Dr Pepper, Canada Dry, Green Mountain Coffee Roasters, Snapple, Mott's, The Original Donut Shop, Clamato, Core Hydration, and the Keurig brewing system.
Keurig Dr Pepper has an expected earnings growth rate of 11.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.6% over the last 60 days. KDP has a beta of 0.35 and a current dividend yield of 3.46%.
Entergy Corp.
Entergy is primarily engaged in electric power production and retail distribution of power. ETR has a 30,000-megawatt (MW) generating capacity, including more than 8,000 MW of nuclear fuel capacity.
Entergy has an expected earnings growth rate of 12.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last 60 days. ETR has a beta of 0.57 and a current dividend yield of 2.20%.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2899651/4-low-beta-defensive-stocks-to-take-refuge-in-amid-sky-high-inflation
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Follow us on Twitter: https://www.twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>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
Entergy Corporation (ETR): Free Stock Analysis Report
Atmos Energy Corporation (ATO): Free Stock Analysis Report
American States Water Company (AWR): Free Stock Analysis Report
Keurig Dr Pepper, Inc (KDP): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).