5 Best Defensive Stocks To Watch For 2014

For years it was the case that Coca-Cola Co. (NYSE: KO) was a key defensive stock to own in a bad market. It is a Dow Jones Industrial Average component after all. In the recession, Coke products became treated as optional items to buy. And now the health concerns over sugar-fizz water are weighing on Coca-Cola. The same applies to PepsiCo Inc. (NYSE: PEP) as its chief rival. The difference between them is that Pepsi is also a snack food play.

24/7 Wall St. wants to know what the current climate is for defensive stocks. Some of the more battered stocks have drawn investor interest of late, but it seems as though the dip-buyers may be worried that the upside is capped.

Coca-Cola Co. (NYSE: KO) has a 5.17-to-1 price-to-book ratio. Its market cap is $170.7 billion, and its forward price-to-earnings (P/E) ratio is 17.5. With a consensus target price of $43.88, the beverage giant has an implied upside of about 12%. Coke’s shares closed at $38.95 on Friday, and the 52-week trading range is $36.83 to $43.43.

Hot Internet Stocks To Buy For 2015: Zargon Oil & Gas Ltd (ZARFF.PK)

Zargon Oil & Gas Ltd. (Zargon), formerly Zargon Energy Trust, is engaged in the business of oil and natural gas exploration, exploitation, development, acquisition and production in Canada and the United States. During the year ended December 31, 2010, Zargon�� average daily production were 9,879 barrels of oil equivalent. Its properties are concentrated within the Western Provinces in Canada and in North Dakota in the United States. Its Williston Basin core area encompasses a portion of southeast Saskatchewan, southwest Manitoba and three counties of North Dakota. During 2010, it accounted 51% of its oil and liquids production. During 2010, its Alberta Plains South core area contributed 27% of its oil and liquids production. In June 2012, the Company sold 275 barrels of oil per day pertaining to all of its southwest Manitoba assets and selected properties in the Elswick area of southeast Saskatchewan. Advisors' Opinion:

• [By MLP Trader]

  Here are the current top five companies in the list:

  CompanySymbolEV/BOEPD/NetbackPrice/NAVEV/DACFPinecrest(PNCGF.PK)53564%4.0XLightstream(LSTMF.PK)131753%4.5XNovus(NOVUF.PK)133290%4.1XZargon(ZARFF.PK)138664%5.6XTwin Butte(TBTEF.PK)155885%5.5X

  Of the larger companies, one that remains obstinately near the top of the list is Lightstream . Lightstream trades at 40% of its book value and a whopping 13.4% yield.

5 Best Defensive Stocks To Watch For 2014: KMG Chemicals Inc (KMG)

KMG Chemicals, Inc., incorporated on July 30, 1992, manufactures, formulates and globally distributes specialty chemicals. The Company has acquired and operates businesses selling electronic chemicals and industrial wood treating chemicals. The Company operates in two segments: electronic chemicals and wood treating chemicals. The Company's electronic chemicals segment provides wet process chemicals to the semiconductor industry, primarily to clean and etch silicon wafers in the production of semiconductors. The Company supplies wet process chemicals to the semiconductor industry in the United States and Europe. Its wood treating chemicals, pentachlorophenol (penta), and creosote, are sold to industrial customers who use these preservatives primarily to extend the useful life of utility poles and railroad crossties. The Company is the supplier of penta in North America, and supplier of creosote in the United States to wood treaters who do not produce their own creosote. On March 1, 2012, the Company discontinued its animal health business. In June 2013, the Company announced that it completed the acquisition of the Ultra Pure Chemicals subsidiaries of OM Group Inc located in the United States, England and Singapore.

Electronic Chemicals

The Company's electronic chemicals business sells wet process chemicals primarily to the semiconductor industry. These chemicals are used to clean and etch silicon wafers in the production of semiconductors. The Company's products include sulfuric, phosphoric, nitric and hydrofluoric acids, ammonium hydroxide, hydrogen peroxide, isopropyl alcohol and various blends of chemicals. The Company's products are sold in bulk and in containers, including bottles, drums and totes. This process is accomplished at the Company's Pueblo, Colorado, Hollister, California and Milan, Italy facilities, although the Company contracts with General Chemical to produce certain products for the Company at its facility. As of July 31, 2012, the Company's electronic ! chemicals business accounted for 58.5% of its net sales.

Wood Treating Chemicals

The Company supplies penta and creosote to industrial customers who use these products to extend the useful life of wood, primarily utility poles and railroad crossties. The Company's penta products include penta blocks, solutions and hydrochloric acid, a byproduct of penta production. Penta is used primarily to treat utility poles, protecting them from insect damage and decay. The Company manufactures solid penta blocks at its facility in Matamoros, Mexico. The Company sells solid penta to its customers, or make it into a liquid solution of penta concentrate at its Matamoros, Mexico and Tuscaloosa, Alabama facilities. The Company sells penta products primarily in the southeastern and northwestern United States and in Canada. The hydrochloric acid the Company produces as a byproduct of penta production is sold in Mexico for use in the steel and oils well service industries. Creosote is a wood preservative used to treat utility poles and railroad crossties. Creosote is produced by the distillation of coal tar, a by-product of the transformation of coal into coke. The Company sells creosote to wood treaters throughout the United States. As of July 31, 2012, the Company's wood treating chemicals constituted about 41.4% of the Company's net sales.

The Company competes with Honeywell, Kanto Corporation, Avantor, BASF and the OM Group.

Advisors' Opinion:

• [By Monica Gerson]

  Analysts expect KMG Chemicals (NYSE: KMG) to report its Q4 earnings at $0.27 per share on revenue of $79.00 million. KMG Chemicals shares surged 4.99% to close at $23.76 on Friday.

• [By Caroline Bennett]

  J. Neal Butler, KMG Chemicals' (NYSE: KMG  ) CEO and president, has resigned from his positions with the company. Effective July 10,�Christopher Fraser, KMG's chairman of the board of directors, will serve as interim replacement CEO and president, the company announced today.

5 Best Defensive Stocks To Watch For 2014: Panera Bread Company(PNRA)

Panera Bread Company, together with its subsidiaries, owns, operates, and franchises retail bakery-cafes in the United States and Canada. Its bakery-cafes offer fresh baked goods, sandwiches, soups, salads, custom roasted coffees, and other complementary products, as well as provide catering services. The company also manufactures and supplies dough and other products to company-owned and franchise-operated bakery-cafes. As of March 29, 2011, it owned and franchised 1,467 bakery-cafes under the Panera Bread, Saint Louis Bread Co., and Paradise Bakery & Cafe names. The company was founded in 1981 and is based in St. Louis, Missouri.

Advisors' Opinion:

• [By Andrew Marder]

  I've come to loathe precedents. Nothing is more annoying than someone telling you that their favorite new book is the next Harry Potter�or that the movie they just saw is going to be the next Godfather. So it shouldn't be a surprise that I'm not overly keen on the selling of Noodles & Company (NASDAQ: NDLS  ) as the next Panera (NASDAQ: PNRA  ) or Chipotle (NYSE: CMG  ) or Buffalo Wild Wings (NASDAQ: BWLD  ) . Instead, maybe we can judge the business on its merits, instead of on the success of restaurants that came before it.

5 Best Defensive Stocks To Watch For 2014: Fastenal Company(FAST)

The Company Is Engaged As A Wholesaler And Retailer Of Industrial And Construction Supplies. The Industrial And Construction Supplies Were Grouped Into Ten Product Lines: Fasteners, Tools And EquipmeNt, Cutting Tools And Abrasives, Hydraulics, Pneumatics, Plumbing And Hvac, Material Handling, Storage And Packaging, Janitorial Supplies, Chemicals And Paints, Electrical Supplies, Welding Supplies, Safety Supplies And Metals, Alloys And Materials.

Advisors' Opinion:

• [By Lauren Pollock]

  Fastenal Co.'s(FAST) third-quarter earnings rose 9.2%, benefiting from increased sales and slightly higher margins. As in its second-quarter report, the company again warned that it believes its sales growth was held back in part by global economic uncertainty, combined with economic policy uncertainty in the U.S. Shares dropped.

• [By Monica Gerson]

  Fastenal Company (NASDAQ: FAST) is estimated to report its Q3 earnings at $0.41 per share on revenue of $862.54 million.

  Costco Wholesale (NASDAQ: COST) is expected to report its Q4 earnings at $1.46 per share on revenue of $32.82 billion.