3 Defensive Value Stocks Built To Hold Up In Market Volatility

The collapse of Leopold Aschenbrenner’s $20b AI focused hedge fund, Situational Awareness, has thrown a spotlight on how fragile highly leveraged tech bets can be. Forced selling of up to $16b in public equity holdings and wider pressure on AI related stocks may unsettle markets, but it can also bring steadier, dividend paying companies into focus. This article looks at 3 stocks from our Defensive Value Stocks screener that appear more insulated from this turmoil. You will see where their strengths and potential vulnerabilities sit as tech focused funds deal with margin calls and tighter scrutiny.

Medical Facilities (TSX:DR)

Overview: Medical Facilities Corporation owns and operates specialty surgical hospitals in the United States that focus on non emergency procedures, such as surgery, imaging, diagnostics and pain management, along with related primary and urgent care services. It earns fees for providing the facilities, equipment, staff and support services required to treat patients and bill their insurers.

Operations: Medical Facilities generates about US$260.7m in revenue from healthcare facilities and services, all from the United States.

Market Cap: CA$313.3m

Medical Facilities stands out in the current period of AI driven volatility because its business is tied to essential healthcare demand rather than market sentiment. The company combines high reported return on equity and what analysts describe as high earnings quality with a relatively low P/E and a large gap to the Simply Wall St estimated fair value, which some investors may see as a value opportunity. At the same time, forecasts for declining earnings, an unstable dividend history and reliance on external borrowing underline that this is not a simple income story. The main interest for investors is how margin management, physician recruitment and outpatient growth could influence whether that valuation gap eventually closes.

Medical Facilities appears to be an earnings quality story within a healthcare utility. Find out how its reported returns, P/E, and payout profile line up in the 2 key rewards and 2 important warning signs (1 is major!)

AEP Plantations (LSE:AEP)

Overview: AEP Plantations Plc owns and operates oil palm and rubber plantations in Indonesia and Malaysia, turning fresh fruit bunches into crude palm oil, palm kernels, rubber products and biogas, and also sells electricity generated from its biogas plants into the national grid.

Operations: AEP Plantations generates about US$465.2m in revenue, almost all from cultivating plantations.

Market Cap: £655.0m

AEP Plantations stands out when fast growing tech stocks are under pressure because its core business is tied to agricultural production, with full year 2025 sales of US$465.21m and net income of US$90.88m. The company trades at a P/E of 9.7x, below both the European Food industry and peer averages. Net profit margins of 19.5% and recent earnings growth of 34.6% suggest that the current share price may not fully reflect its cash generating capacity. At the same time, revenue growth forecasts are modest, the dividend record is uneven and funding relies entirely on external borrowing. For investors, the interest lies in how that low valuation, ongoing buybacks and a stock split could interact with these risks over the next few years.

AEP Plantations’ low P/E and double digit net margin raise a question: Is the market underpricing its cash generation or correctly discounting funding and dividend risks uncovered in the 3 key rewards and 2 important warning signs

Hilton Food Group (LSE:HFG)

Overview: Hilton Food Group supplies major international supermarkets with packed meat, seafood, plant based products and ready meals, while also running supply chain services such as warehousing and logistics across the UK, Europe and APAC.

Operations: Hilton Food Group generates about £4.26b in revenue from APAC (£1.55b), the UK & Ireland (£1.55b), Europe (£1.16b) and inter company eliminations of £41.5m.

Market Cap: £511.0m

Hilton Food Group gives you exposure to everyday food spending through long term relationships with retailers such as Tesco, Walmart and Ahold Delhaize. This can help smooth earnings when highly geared tech stocks are under pressure. The stock screens as good value on P/E versus peers and an internal fair value estimate, while offering a 6.16% dividend yield, yet cash flow coverage and reliance on external borrowing mean the income is not without risk. Recent leadership changes and expansion into Canada and Saudi Arabia point to a company still investing for growth. The key question is how these moves, and the operational issues in seafood, shape the balance between steady cash generation and rising leverage over the next few years.

Hilton Food Group’s supermarket partnerships and 6.16% yield could be masking a far bigger story for cash flow and debt. See how the full picture lines up in the analysis report for Hilton Food Group

The 3 stocks covered here are only the starting point, since the full Defensive Value Stocks screener surfaces 14 more companies with similar value scores, balance sheets and income profiles that could help build a defensive watchlist. Use Simply Wall St to identify and analyze the exact catalysts, dividend records, debt levels and valuation gaps that matter most so you can focus on the highest conviction ideas for your portfolio.

Take Control of Your Investment Journey

If Hilton Food Group or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Alternatives Before The Crowd Moves

Fresh ideas do not stay under the radar for long. As momentum builds, prices can start flying or dropping before most investors react. Scan these curated lists to explore opportunities at an earlier stage.

• Spot companies with strong balance sheets before the crowd notices by running the list of solid balance sheet and fundamentals (11 results), which highlights financially resilient stocks that may benefit from shifts in market rotation.
• Track where cash generation meets durable payouts using the 6 dividend fortresses to surface higher yielding businesses that aim to keep distributions flowing when growth stories cool.
• Zero in on opportunities tied to long term infrastructure demand through the 35 power grid technology and infrastructure stocks and find stocks focused on the critical backbone of energy and electrification.

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.

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