Loop capital recommends three defensive stocks as Middle East conflict continues

Loop Capital has recommended three defensive stocks that could help investors preserve capital amid the ongoing conflict in the Middle East. The war is “casting a major pall, as we think a prolonged period of high oil prices will not only reduce purchasing power but will also dent consumer confidence,” analyst Anthony Chukumba wrote in a note cited by CNBC.

Here are the stocks he highlights.

National Vision Holdings

National Vision, with a market capitalization of just under $2.2 billion, describes itself as one of the fastest-growing optical retailers, selling eyeglasses and contact lenses. In 2025, its revenue from continuing operations rose 9% to $1.99 billion. In 2026, National Vision guides for revenue of $2.03-2.09 billion, implying growth of 2-5%.

Wall Street is broadly positive on the stock's outlook: National Vision has nine “buy” ratings from analysts versus three “hold” recommendations. The average target price stands at $35.27 per share, implying upside of more than 28% versus the closing price on Tuesday.

Ollie’s Bargain Outlet

Discount retailer Ollie’s Bargain Outlet, with a Nasdaq capitalization of $5.7 billion, describes itself as the largest U.S. retailer of closeout merchandise and excess inventory. Its assortment includes food, apparel, home and garden goods, as well as furniture.

For its fiscal fourth quarter, ended January 31, the company reported a 16.8% year-over-year increase in net sales to $779.3 million. Ollie’s said the growth was driven by a 15.4% increase in store count and a 3.6% rise in comparable-store sales. Following the report, Wells Fargo upgraded the stock to “overweight” from “equal weight.” “OLLI’s story continues to build momentum; we haven’t always been on board, but confidence is building into an attractive ’26 set-up,” analyst Edward Kelly wrote.

In total, Ollie’s shares have 14 “buy” ratings from Wall Street analysts versus three “hold” recommendations. The average target price is $138.60 per share, implying nearly 49% upside.

Five Below

Retailer Five Below, with a Nasdaq capitalization of nearly $12.8 billion, like Ollie’s offers a range of value-priced goods, but with a focus on “products loved by the kid and the kid in all of us.” Its assortment includes, among other things, candy, craft supplies, and party goods. For its fiscal 2025, ended January 31, the company reported revenue growth of 22.9% to $4.76 billion, while comparable sales increased 12.8%.

The stock is rated “buy” by 16 Wall Street analysts, while another 10 recommend “hold.” The average target price is $262.29 per share, for about 13.5% upside