Markets are watching the Supreme Court and the Federal Reserve almost as closely as earnings reports right now, as questions over central bank independence and possible political pressure on monetary policy add a fresh layer of risk for portfolios. When trust in the Fed is in focus, many investors look again at large U.S. defensive stocks that may offer relatively steadier business profiles if volatility picks up. This article explains how that backdrop could influence your positioning and walks through 3 stocks from our U.S. Large Cap Defensive Stocks screener that appear positively exposed to this news driven theme.

Shockwave Medical (SWAV)

Overview: Shockwave Medical develops and sells medical devices that use intravascular lithotripsy to break up calcified plaque inside blood vessels and heart valves, helping interventional cardiologists and vascular specialists treat peripheral artery disease, coronary artery disease and certain heart valve conditions.

Operations: Shockwave Medical generates about US$788 million in revenue from surgical and medical equipment, with roughly US$625 million from the United States, US$88 million from Europe and US$75 million from other countries.

Market Cap: US$12.6b

Shockwave Medical sits squarely in the kind of healthcare exposure investors often look for when Fed independence is being debated, with a focused IVL product portfolio that targets complex vascular and heart valve cases where clinical data and adoption updates matter more than short term macro swings. Forecast earnings and revenue growth ahead of the wider market, high margins and strong return on equity point to a quality business, although the very high P/E multiple and recent decline in earnings growth highlight valuation and execution risks that cannot be ignored. In addition, prior shareholder dilution and funding structure considerations present a business that may appear attractive on fundamentals but still leaves key questions open for anyone weighing it against other defensive large caps.

Shockwave Medical’s high margins and strong return on equity set the scene for a quality story, but the very high P/E and growth questions make the 1 key reward and 2 important warning signs feel like the missing plot twist investors overlook.

Change Healthcare (CHNG)

Overview: Change Healthcare runs software, data, and payment networks that connect U.S. hospitals, doctors, pharmacies, insurers, and government health programs, helping them manage claims, billing, eligibility checks, clinical decisions, and patient engagement more efficiently.

Market Cap: US$9.0b

Change Healthcare sits squarely in the sort of healthcare IT and payments infrastructure that many investors look at when markets start to worry about Federal Reserve independence, because its services are tied to essential insurance and clinical workflows rather than discretionary spending. The stock screens as good value on some metrics while still being unprofitable, with losses increasing over the past 5 years and earnings only expected to turn positive over the next few years. As an investor you are balancing potential upside against clear execution and funding risks. Heavy reliance on external borrowing, past shareholder dilution and regulatory scrutiny around health data and billing add further complexity that deserves a closer look before deciding how it fits alongside other defensive large caps.

Change Healthcare’s losses and funding risks are only half the story, with its core networks tied to essential U.S. healthcare workflows in a way many investors may be overlooking, so the 2 key rewards and 1 important warning sign could surface the twist that reshapes how you see the stock.

Molina Healthcare (MOH)

Overview: Molina Healthcare provides managed healthcare plans to low income individuals and families in the United States through Medicaid, Medicare, and Affordable Care Act marketplace products, focusing on government sponsored programs rather than employer plans.

Operations: Molina Healthcare generates most of its US$43.1b in revenue in the United States, with about US$32.0b from Medicaid, US$6.3b from Medicare, US$4.2b from Marketplace plans, and US$155m from other sources.

Market Cap: US$10.2b

Molina Healthcare sits at the center of U.S. government backed healthcare, which many investors turn to when worries about Federal Reserve independence and potential volatility push them toward more defensive sectors. The company has meaningful earnings growth forecasts and fresh contract wins, such as the new Illinois Medicaid award. However, recent pressure on net margins to 0.4%, a one off US$96.0m loss, and heavy use of external borrowings indicate that execution on medical costs and funding is crucial. Combined with a relatively high P/E against sector averages and significant insider selling, this creates a picture in which policy stability and contract momentum may be appealing, while the key issue remains how these risks are managed over the coming years.

Molina Healthcare’s contract momentum and tiny 0.4% net margin suggest earnings could be more finely balanced than they appear. The 2 key rewards and 3 important warning signs might reveal what is really driving that trade off between growth and risk

The three stocks covered here are just a starting point, with the full U.S. Large Cap Defensive Stocks screener surfacing 8 more large U.S. companies that pair defensive sectors with equally compelling narratives around cash flows, balance sheets, and earnings quality. Use Simply Wall St to identify and analyze the exact catalysts that matter to you so you can filter by the factors discussed here and focus on the highest conviction defensive ideas in one place.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.