When volatility returns and investors start questioning growth stories, capital often flows back into companies with stable cash flow, resilient demand and strong balance sheets. Defensive stocks rarely make headlines during bull markets, but they tend to become market leaders when uncertainty rises. Which three companies could help investors navigate a more fragile economic environment?

The term defensive stocks refers to titles whose demand and earnings remain relatively stable regardless of the stage of the economic cycle. Typically, these are companies with low beta, i.e., less sensitivity to movements in the overall market, with strong balance sheets and predictable cash flow. When sentiment cools, such companies typically decline less than the broader index, providing investors with some anchor in a volatile environment.

The current market environment again makes this a valued quality. After years in which returns were driven primarily by giant technology firms tied to artificial…