Central banks are rethinking interest rates, currencies are swinging and new rules are reshaping global finance. That mix can punish weaker companies while giving sturdier balance sheets more room to stand out. If you care about preserving capital and staying exposed to potential upside when conditions shift, this matters. This article walks through three stocks from a Global Quality Defensive Stocks screener that appear closely tied to these events.

The three stocks highlighted below are only a small sample of what this Global Quality Defensive Stocks idea can surface, with the full screen bringing up 75 more large, resilient companies with equally compelling stories that are not covered here. If you want to go straight to the source and identify your own higher conviction setups, head into the Global Quality Defensive Stocks screener.

CVS Health (CVS)

Overview: CVS Health is a large U.S. healthcare company that combines health insurance, pharmacy benefit management services and a nationwide retail and online pharmacy network to deliver medical coverage, prescription drugs and everyday health products to individuals, employers and government programs.

Operations: CVS Health generates most of its roughly US$412.6b in revenue from Health Services at about US$200.5b, Health Care Benefits at about US$143.8b and Pharmacy & Consumer Wellness at about US$139.7b, almost entirely in the United States.

Market Cap: US$119.6b

CVS Health sits at the center of U.S. healthcare with insurance, a large pharmacy benefit manager and thousands of retail pharmacies, which can help keep earnings and cash flows relatively steady when markets are volatile. Recent results show solid earnings momentum and higher cash generation, while a multi year restructuring and cost program is trying to address past store closures, high medical costs and a sizeable one off loss. At the same time, analysts see upside based on discounted valuation metrics and a DCF value above the current price. Investors continue to focus on risks such as debt levels, Medicare pricing pressure and regulatory scrutiny of pharmacy benefit managers. If CVS continues to improve profitability, the gap between perception and fundamentals may narrow.

CVS Health’s earnings momentum and cash generation could be masking a much bigger story. See how valuation, balance sheet pressure and future cash flows stack up in the DCF valuation analysis for CVS Health that may flip the usual bear case on its head

Build your own defensive shortlist around CVS Health

CVS Health and the other two stocks in this list all came from the same screener, but the real edge is in setting filters that fit how you like to invest. Use our flexible Screener to blend valuation, quality, balance sheet and risk metrics, or start with any of our curated Investing Ideas.

Sysmex (TSE:6869)

Overview: Sysmex is a Kobe based diagnostics company that supplies blood and urine testing instruments, reagents and software to hospitals, laboratories and research institutes worldwide, aiming to make routine testing more accurate, efficient and data driven.

Market Cap: ¥1.1 trillion

Sysmex gives you exposure to healthcare diagnostics, a field that tends to hold up relatively well when markets get shaken by interest rate shifts or currency swings, because hospitals keep running tests and labs keep ordering reagents. The company is pushing deeper into higher margin areas like hemostasis and clinical chemistry, expanding reagent focused recurring revenue and using value chain reforms to support earnings quality, even as earnings recently declined and margins softened. Management has updated guidance upward for the current year, is lifting dividends and has been active with buybacks, which signals confidence but also raises the bar on execution. The real question is whether Sysmex can offset China policy pressure and tariffs with growth in the Americas, EMEA and emerging markets.

Sysmex appears to be a testing powerhouse whose earnings narrative has received less attention in the headlines, even as its reagent-driven model continues to operate effectively in the background. Get the full picture in the analysis report for Sysmex

Oracle Corporation Japan (TSE:4716)

Overview: Oracle Corporation Japan supplies enterprise software, cloud infrastructure, and hardware to Japanese businesses and public sector customers, helping them run core systems such as databases, finance, human resources, customer management, and analytics in both on premise and cloud environments.

Market Cap: ¥1.2 trillion

Oracle Corporation Japan provides exposure to mission critical software and cloud services that many large Japanese companies use every day, supported by high margins, a forecast ROE of around 31%, and earnings growth expectations of about 8% a year. Analysts project upside potential relative to current prices and expect rising dividends, while management continues to invest in cloud and generative AI infrastructure for clients such as NRI and Shiseido. On the other hand, the stock trades at a premium P/E to many peers, dividend consistency has been uneven, and funding leans on external borrowing, so execution on cloud growth and capital allocation is important to monitor. For investors seeking quality defensive tech exposure, this combination of strengths and risks may warrant closer analysis.

Oracle Corporation Japan’s high margins, premium P/E and cloud push with generative AI partners suggest a story the market may not fully price in yet. Get the full picture in the analysis report for Oracle Corporation Japan

Seeking Alternatives Before Others Catch On

Fresh stock ideas can move from quiet accumulation to full breakout while many investors remain focused on prior winners. Consider exploring new opportunities with care and discipline.

• Scan for beaten down opportunities that still carry strong balance sheets and cash flows using the curated 49 high quality undervalued stocks before any potential rebound gathers wider attention.
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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.