10 Best Consumer Staples Stocks Of September 2023

Consumer goods are goods that people cannot or do not want to cut back on, regardless of the state of the economy. This is because companies have to pay more for their inputs but may not be able to pass these higher costs on to consumers. In addition, inflation can affect consumer goods stocks in yet another way. When inflation is high, consumers may cut back on spending, which leads to lower sales for businesses in the sector. Thus, firms in this industry can benefit from higher product prices because consumers still have to buy these goods.

Although the industry sees relatively little innovation and growth, consumer staples products tend to be timeless, and these companies are likely to continue to endure. The top 7 list was derived from the expected returns of each stock. We calculate expected returns based on a projection of earnings-per-share growth, dividend yields, and changes in the valuation multiple. The 7 https://1investing.in/ are ranked by 5-year expected returns, from lowest to highest. Click here to instantly download your free Excel spreadsheet of all 71 consumer staples stocks, along with important investing metrics like price-to-earnings ratios and dividend yields.

Consumer Staples Stocks to Buy in a Falling Market

Because of its exposure to the restaurant industry, Pepsi was more affected by the early stages of the pandemic. However, the company was able to quickly recover, and it posted 9.5% organic revenue growth in 2021. Through the first six months of 2022, it kept the ball rolling by expanding organic revenue growth by 13.3%.

Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. When people have a little extra cash, they indulge in offerings from these companies. Consumer staples are noncyclical, meaning they offer investors safety during recessionary climates. © 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer.

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This sector often outperforms the broader market during times of economic uncertainty and market volatility. The consumer goods sector is one of the largest sectors of the US stock market, with a market capitalization of over $2 trillion. Certain segments of the consumer discretionary sector, especially retailers, are ripe targets for disruption by new e-commerce competitors. Moreover, growing online sales dilutes the power of well-known consumer staples brands.

The remaining stocks in the spreadsheet are consumer staples with price-to-earnings ratio less than 25. Colgate’s dividend yields 2.4% and its annualized total returns over the past 15 years is 7.3%. PG sells products in 180 countries and produces some $65 billion in central pivot range formula net annual sales. PG has also produced annualized total returns of 7.4% over the last 15 years. Both sales and earnings are critical factors in the success of a company. Companies with quarterly EPS or revenue growth of more than 1,000% were excluded as outliers.

#31 – Albertsons Companies

The company also owns Frito-Lay and Quaker, as well as popular drink brands such as Mountain Dew and Gatorade. Its Frito-Lay snack business generates almost as much revenue in North America as its beverages, and that business has been a source of growth while soda sales slow in the U.S. and around the world. With its global brands and distribution, Pepsi enjoys many of the same advantages as industry giants P&G and beverage company competitor Coca-Cola (KO 0.24%). If you’re looking to invest in consumer staple stocks, one way to do so is through consumer staple ETFs.

These are the items that pop up on your shopping list repeatedly—things like paper towels, soap, toothpaste, cigarettes and soda. Sweets purveyor Tootsie Roll Industries (TR, $46.17) is the company behind the namesake chocolate treats. However, its other brands include Blow-Pops, Andes mints, Dubble Bubble gum, Razzles, Cry Baby sour candies, and many others.

All Consumer Staples investments from Fidelity

Consumer staples stocks aren’t a good fit if you trade frequently for short-term profits or look to realize gains by timing the market. Kraft Heinz formed with a merger in 2015, so the 15-year annualized total returns are not available. Discount retailer Dollar General (DG, $227.82) is a nationwide chain that offers everything from cleaning products to packaged food to over-the-counter medicines to holiday items. It is focused on value-conscious consumers who are looking to pinch pennies, which makes it one of the more stable merchants out there when times are tough. Sales are forecast to rise in the mid-single digits this fiscal year and next, showing that Coke is a powerful consumer stock that knows how to connect with its customers. In fact, MO stock lost a mere 2% last year, marking it as one of the better-performing stocks in the S&P 500.

• Estee Lauder is the second-biggest pure-play cosmetics company in the world behind L’Oreal (LRLCY -1.05%), and it has an impressive array of prestige beauty brands, including Clinique, Aveda, La Mer, and MAC.
• Kraft Heinz formed with a merger in 2015, so the 15-year annualized total returns are not available.
• We also offer sector mutual funds and sector ETFs from other leading asset managers.
• For the full year 2023, the company has projected revenue of $2.03 billion to $2.18 billion, which takes into account an anticipated 1% to 2% unfavorable impact from foreign currency.
• Adjusted net income decreased 5.1% to $366 million, or $0.62 per share.

Conagra is a food company with well-known brands like Slim Jim, Healthy Choice, Marie Callender’s, Orville Redenbacher’s, Reddi Whip, Birds Eye, Vlasic, Hunt’s, and PAM. Because of their narrow focus, sector investments tend to be more volatile than investments that diversify across many sectors and companies. Fidelity’s Guided Portfolio Summary performanceLog In Required

Review current equity sector weights for your portfolio and see how they compare to the market. Vanguard Consumer Staples ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VDC is a good option for those seeking exposure to the Consumer Staples ETFs area of the market.

All 74 Consumer Staples Stocks List From Major Sector ETFs Now

The consumer staples sector stands up well during times of recessions, implying that the sector presents less risk than many of its counterparts. The remaining stocks in this spreadsheet are those with dividend yields above 3% and market capitalizations above $10 billion. The next screen that we’ll implement is for ‘blue chip stocks’ – those with dividend yields above 3% and market capitalizations above $10 billion. Keep reading this article to learn more about the merits of investing in consumer staples stocks. Mondelez International produces revenues of $31.5 billion annually.

• However, the company was able to quickly recover, and it posted 9.5% organic revenue growth in 2021.
• Regardless of the reason, the performance of Tootsie Roll lately makes it stand out among consumer staples stocks.
• On April 28th, 2023, the company announced results for the first quarter of 2023.
• The consumer staples sector stands up well during times of recessions, implying that the sector presents less risk than many of its counterparts.
• The company is scheduled to release fourth quarter fiscal 2023 results on May 24.

Consumer staple ETFs offer investors exposure to a basket of consumer staple stocks, which can provide diversification and reduce risk. Look for a team with a track record of success in running a consumer staples business. This will give you confidence that they have the experience and expertise to navigate through tough times.

Best Consumer Staple Stocks To Buy Now

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.

In 2023, SJM joined the list of Dividend Aristocrats, stocks that have provided at least 25 consecutive years of growth in their distributions. What’s more, the payout is less than half of SJM earnings per share, so there’s ample headroom for payouts going forward from one of Wall Street’s best consumer staples stocks. The sector’s combination of high returns and low risk make it a uniquely appealing sector for conservative total return investors. In strong economies, consumer staples stocks won’t usually appreciate as quickly as other stocks.

In inflationary periods, costs for ingredients, labor, and distribution often rise faster than a company’s ability to pass on price changes. There can be a period of margin weakness that will likely be temporary for the best-managed consumer staples companies. Price increases also need to be balanced against the risk of consumers trading down to cheaper alternatives. Because consumer staples companies operate in stable sectors and sell products that are always in demand, the biggest ones have been around for a century or more.