The growing uncertainty and rising volatility in broad markets has me concerned, and I am currently focused on identifying defensive stocks that should hold up well in case there are further declines.

Primo Brands Corporation (PRMB) is a leading consumer staples company, specializing in bottled water, beverage dispensers, and hydration solutions that serve millions across North America. The company’s portfolio includes a mix of iconic, long-standing brands, with six boasting histories of over 100 years and four dating back to the 1800s. Additionally, the stock is holding up quite well amid this recent correction.

Its positioning in the consumer staples sector also provides defensive stability, making it a strong play in uncertain markets. At the same time, the company has significant growth forecasts, a reasonable valuation and a top Zacks Rank.TradingView

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Primo Brands Corporation Experiences Earnings Estimates Upgrades

Earnings estimates have surged in recent months, earning Primo Brands a Zacks Rank #1 (Strong Buy) as analysts continue to revise projections higher. PRMB has seen some hefty revisions higher to its earnings estimates, with next quarter’s forecasts jumping by nearly 40% and next year’s climbing by 34%.Zacks Investment Research

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PRMB Shares Trade at a Discount to Growth Forecasts

Despite trading at 21.8x forward earnings, the company’s projected annual EPS growth of 37.3% over the next three to five years gives it a highly attractive PEG ratio of just 0.65, signaling strong value relative to its growth potential.

Additionally, at 21.8x forward earnings it is trading considerably below its 10-year median multiple of 35.2x, giving it a historical discount as well.Zacks Investment Research

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Should Investors Buy Shares in PRMB?

With a combination of defensive positioning, rising earnings estimates, and an attractive valuation, Primo Brands stands out as both a defensive and high-growth opportunity in today’s market.

Whether the is a deeper correction in the cards for markets, or we return to a strong bull market, Primo Brands Corporation is likely a compelling stock to add to investor portfolios.

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This article originally published on Zacks Investment Research (zacks.com).

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