Better Healthcare Stock to Own in a Recession: Defensive or Growth?

Defensive healthcare names such as Johnson & Johnson and CVS tend to outperform during recessions relative to growth-oriented healthcare stocks. Growth healthcare offers higher risk and potential reward and is less correlated with economic cycles, implying a defensive tilt may be prudent for risk-averse portfolios in downturns.

Analysis

Defensive healthcare names such as Johnson & Johnson and CVS tend to outperform during recessions relative to growth-oriented healthcare stocks. Growth healthcare offers higher risk and potential reward and is less correlated with economic cycles, implying a defensive tilt may be prudent for risk-averse portfolios in downturns.