Defensive stocks are gaining attention as investors continue to deal with concerns about the economy. However, sectors like health care, utilities, and consumer staples are heading for a fourth consecutive year of underperformance. What's even more surprising is that they're still trading near their historical average valuations, according to Fidelity's Director of Quantitative Market Strategy Denise Chisholm. For now, the data suggests investors aren't pessimistic enough to bid up the price of defensive stocks, but aren't all-in on a recovery trade either.
Fidelity Investments, as of October 29, 2026.