what are consumer staples stocks

To see all exchange delays and terms of use please see Barchart’s disclaimer. Our experts picked 7 Zacks Rank #1 Strong Buy stocks with the best chance to skyrocket within the next days. One other Consumer Staples stock that has outperformed the sector so far this year is Barfresh Food Group Inc. (BRFH Quick QuoteBRFH — Free Report) . Given the current valuation and dividend, GIS stock should be seen as a buy-the-dip opportunity.

ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. Large, institutional investment managers with more than $100 million in assets under management are required to disclose their portfolio holdings on a quarterly basis through a regulatory filing called a 13F. As the pandemic has subsided, Walgreens is facing tough comparisons.

The S&P 500 closed 2022 with a total loss of about 18% on the year, its worst annual return since the financial crisis of 2008. Those declines, coupled with stubbornly high inflation, a rising interest-rate environment and uncertainty over the potential for a bigger slowdown in the U.S. economy has many investors seeking out safety. Consumer staples stocks are a traditional safe haven from uncertainty, which has already proven to be more than abundant over the past 12 months. Since being spun off, Philip Morris has grown its market cap to be higher than Altria’s, making it one of the biggest sin stocks in the world. A multinational, member-only big box chain, Costco is the fifth largest retailer in the world, according to the National Retail Foundation.

All 74 Consumer Staples Stocks List From Major Sector ETFs Now

The rise of the middle class in developing countries has led to increased demand for consumer staples products. The term consumer staples refers to a set of essential https://bigbostrade.com/ products used by consumers. This category includes things like foods and beverages, household goods, and hygiene products as well as alcohol and tobacco.

PepsiCo and Coca-Cola show up in the next two slots of each top-10 list, with Estee Lauder turning up lower down on two of the three lists. Consumer Staples ETF doesn’t include retailers, but the other two ETFs have giants such as Walmart (WMT 0.11%) and Costco (COST 0.0%) making the cut. Dock David Treece is a former licensed investment advisor and member of the FINRA Small Firm Advisory Board. His focus is on breaking down complex financial topics so readers can make informed decisions.

While consumer staples are among the safer equities you can buy, there are risks. No company is immune to changing consumer preferences, for example. Consumer staples manufacturers must continue investing in product development and innovation best macd settings for day trading to protect the brand reputations they’ve built. Consumer staples stocks are the companies that produce or sell these goods. Well-known manufacturers in this space include Coca-Cola (KO), Procter & Gamble (PG) and Colgate-Palmolive (CL).

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Agriculture, the food and beverage industry, pharmaceuticals, and other sectors all use the company’s products. The Consumer Staples sector consists of companies that provide goods and services that people use on a daily basis, like food, clothing, or other personal products. CNBC’s Jim Cramer on Wednesday recommended a slate of consumer staple stocks for 2023. Both sales and earnings are critical factors in the success of a company.

Core sales are expected to fall between 14% and 10% for Q2, while normalized earnings should be somewhere between 10 cents and 18 cents. This tool becomes even more potent when combined with a solid, fundamental knowledge of how to manipulate data with Microsoft Excel. Quantitative investing screeners allow investors to remove many of the cognitive biases that impair long-term investing returns. Mispriced stocks are hiding in plain sight and present great investment opportunities in 2023. Forbes’ top investment experts share 7 overlooked stocks for the year ahead in this exclusive report, 7 Best Stocks To Buy for 2023. P&G is currently developing innovative products, including the nontoxic insect repellent Zevo.

what are consumer staples stocks

Consumer staples, like food, water and personal items, are necessary for daily living. These products are considered staple products because people will continue to purchase them, even during economic downturns. The consumer staples sector has a long history of steady and consistent growth. This stable consistency makes consumer staples stocks an attractive option for investors who are looking for reliable returns over the long term. As a result, consumer staples stocks are considered defensive investments that can help balance a portfolio and provide a source of stability and income.

Advantages of Consumer Staples Stocks

For FY 2023, net sales rose 6.4% to $12.3 billion, and adjusted EPS increased 17.4% to $2.77. On April 28th, 2023, the company announced results for the first quarter of 2023. BCPC reported Q1 Non-GAAP EPS of $0.94, beating market estimates by $0.12. In addition, the company reported revenues of $232.5 million for the quarter, up 1.6% year-over-year. Newell posted first quarter earnings on April 28th, 2023, and results were mixed, and guidance was weak. The company noted an adjusted loss of six cents per share, which was three cents worse than expected.

what are consumer staples stocks

Financial advisors would recommend that non-professional investors take a diversified approach. Rather than buying individual stocks, experts suggest choosing a well-diversified consumer discretionary index fund or exchange-traded fund (ETF). Use the fund screener tools available on your brokerage platform to find the best options. When buying individual stocks, it’s imperative to do due diligence and research the consumer discretionary stocks you’re interested in.

Best Consumer staples ETFs

He has been featured by CNBC, Fox Business, Bloomberg, and MarketWatch. WMT was founded in Bentonville, Ark., by Sam Walton, who was a pioneer in value retail. While the company is still headquartered in Arkansas, it now operates everywhere in the U.S. and in 24 countries. Enter your email address below to receive the latest headlines and analysts’ recommendations for your stocks with our free daily email newsletter.

With that in mind, here are nine of the best consumer staples stocks to buy now. All have something different to offer, and many also pay generous dividends on top of the potential for share appreciation. As stocks rise in price, dividend yields will fall if the size of the dividend does not increase as well.

The company has been able to set itself apart from rivals and has established a strong competitive position in the market thanks to a strong focus on research and development. Balchem Corporation is one of the top companies in its sector in terms of market share. Management noted it is making progress in its operational improvement plans, and that the current economic environment for consumers is tough. Despite this, management maintained their longer-term bullishness on the company’s prospects.

One of the primary reasons is that consumer staples are considered essential products that people need regardless of economic conditions. Consumer staple companies are less likely to be affected by economic downturns than companies that produce nonessential products. As a result, these companies may provide more stable and reliable earnings even during challenging economic times.

The consumer staples segment is a relatively defensive segment of the market. It includes food, beverages, and tobacco and producers of non-durable household goods and personal products. Furthermore, it also includes farming, agriculture, and cannabis products. The consumer staples sector has outperformed the S&P 500 in the last three recessionary periods. A consumer staple ETF aims to expose investors to the consumer staples sector without having to pick individual stocks.

Access to our research can help you better understand the industries and companies that make up this sector, with timely performance data and stock, mutual fund, and ETF screeners. Inspired by the growing demand for hygiene products, the Lifebuoy brand of soaps was launched to ‘make health infectious’. 128 years later the Lifebuoy brand continues as a leading soap brand – albeit without the coal tar-derived ingredients list.

Consumer Staples ETFs

Many trading systems utilize moving averages as independent variables and market analysts frequently use moving averages to confirm technical breakouts. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. Consumer staples are noncyclical, meaning they offer investors safety during recessionary climates.

Investing in various consumer staple companies can diversify your portfolio and potentially reduce risk. Two key disadvantages of consumer staples stocks include slower growth and changing consumer preferences. To determine the best consumer staples stocks to invest in start by reaffirming your goals. The «best» stock for you will vary depending on whether your top priority is downside protection, dividend income or long-term value creation. Any company that sells product and/or sources from around the world is subject to currency risk. This can be pronounced for consumer staples companies that experience their highest growth rates outside the U.S.