March has been a turbulent month for investors, with market volatility shaking confidence across the globe.
However, during times of uncertainty, defensive stocks can provide much-needed stability to portfolios. These companies tend to have steady earnings, resilient demand, and strong dividends, making them ideal holdings when markets are under pressure.
If you're looking to shore up your portfolio, here are three ASX defensive stocks that analysts currently rate as buys.
Image source: Getty Images
IPH Ltd (ASX: IPH)
Intellectual property (IP) protection is a must-have service, no matter the economic climate. That's why IPH, a leading IP services firm operating across 10 jurisdictions and 25 countries, remains a defensive play.
With a client base that includes Fortune Global 500 companies, IPH has proven its ability to generate consistent earnings and dividends—a trend that has continued for the past decade. Analysts at Morgans expect this growth to continue and have put an add rating with a $6.30 price target on its shares.
Overall, IPH's defensive business model ensures demand for its services remains stable, making it an attractive option for investors looking for reliable income and long-term stability.
Jumbo Interactive Ltd (ASX: JIN)
Next up is Jumbo Interactive, which is the online lottery ticket seller behind the Oz Lotteries brand. The lottery industry is often seen as recession-proof, with demand for tickets staying steady regardless of economic conditions.
Right now, Jumbo Interactive shares are trading at a 52-week low, potentially presenting a compelling risk/reward opportunity for investors. Morgans sees significant upside, putting an add rating and $13.60 price target on its shares. This implies 30%+ potential upside from current levels.
Commenting on the first half of FY 2025, Morgans noted that "JIN delivered a resilient result despite a weaker jackpotting period in the first half. Looking ahead, JIN will be comping its strongest second half to date, though margins should benefit from effective cost management and incremental upside from Daily Winners."
With a strong net cash position and limited downside risk, Jumbo Interactive could be a great defensive addition to an investment portfolio.
NIB Holdings Limited (ASX: NHF)
Finally, health insurance is another area that tends to hold up well during market downturns, making NIB an attractive defensive investment. The company provides health insurance to over 1.6 million Australians and New Zealanders, as well as coverage for international students and workers.
Analysts at Goldman Sachs are bullish on NIB due to its strong premium increases and resilient earnings. They note that NIB's recent 5.79% premium hike is the highest among major insurers, outpacing rivals like BUPA (5.1%) and HCF (4.95%).
Goldman has a buy rating on the stock with a $7.00 price target, which suggests that double-digit upside is possible from current levels.
