That’s in part because the Ohio-based company has been around for almost 200 years. The largest consumer staples companies have been in business for decades, some for even more than a century. Since they sell products that are always in demand, consumer staples stocks sustain long-term brand value—and that translates into long-term stock value for investors. There are several well-known consumer staples stocks that investors can consider buying. Some of the largest companies in this sector include Unilever, Coca-Cola, PepsiCo, Nestle and Walmart.

They include products such as food, beverages, household cleaners, and hygiene products such as soap and deodorant. Essentially, consumer staples are the items people are likely to continue buying in any type of economy. This article provides our full list of all consumer staples stocks, a tutorial on how to use the spreadsheets to create screens of consumer staples stocks, and the top 7 consumer staples stocks now. Investing in consumer staple stocks may provide diversification benefits to your portfolio.

Kraft Heinz (KHC)

On July 13th, 2023, Conagra reported fourth quarter FY 2023 results for the period ending May 28th, 2023. For the quarter, net sales increased 2.2% to $3.0 billion, due to a 9.9% improvement in price/mix, offset by a 7.7% decline in volume. Adjusted net income decreased 5.1% to $366 million, or $0.62 per share.

In an uncertain market, the best consumer staples stocks provide consistency and stability to portfolios. Index funds that track the consumer staples sector can expose investors to a defensive sector while still allowing them to benefit from the overall market growth. These funds can be a good choice for investors who are looking for stability and income. Consumer staples stocks tend to trade at a premium to the market, so it is important to find companies that are trading at a reasonable price. The other side to this is that a company could have a high P/E ratio and still be a viable investment.

Has Adecoagro (AGRO) Outpaced Other Consumer Staples Stocks This Year?

You can read more about our editorial guidelines  and the investing methodology  for the ratings below. Comprising nearly 70% of the nation’s gross national product (GNP), consumer spending holds a lot of sway over the economy. Economic growth and decline are typically led by consumer spending, which is cyclical. Cyclical means there are ebbs and flows, or times when the consumer spends more and periods when they have more conservative spending habits.

• But what are consumer staples stocks, and why should you consider adding them to your investment portfolio?
• 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.
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Investors have also piled into rate-sensitive tech and growth stocks, which were clobbered in 2022. “Fundamentally, investors are starting to recognize the valuation of staples as a whole, which trade at a 25% premium to historical averages,” said David Wagner, portfolio manager at Aptus Capital Advisors LLC. 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. Our selection of sector- and industry-level mutual funds can help you gain the exposure you’re looking for.

This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.32% per year. These returns cover a period from January 1, 1988 through July 31, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return.

Why Invest in Consumer Staples Companies?

Another reason you may invest in consumer staple stocks is that you often provide consistent dividend income, an attraction to income-seeking investors. These companies typically have a history of paying dividends, often considered reliable and sustainable. But what are consumer staples stocks, and why should you consider adding them to your investment portfolio?

Consumer staple stocks create a “defensive position” in your stock portfolio, which helps to stabilize your entire portfolio during market volatility. The best consumer staples companies tend to have consistently strong organic sales, leading market shares, and attractive dividend yields. 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 slide lower this year has been prompted by softening sales and disappointing quarterly earnings. At the end of June, the company announced that its quarterly sales missed Wall Street targets, sending the stock lower as a result. However, the company makes and sells more than 100 branded products ranging from yogurt to dog food. And it is moving more into snack bars and away from traditional cereal. Altria Group was founded by Philip Morris in 1847 and today has grown into a consumer staples giant.

These products are essential for maintaining a clean and healthy home, and people consume them regularly. Keeping the demand for these products steady and making these products less susceptible to market fluctuations. Many companies that produce these products have established brand names, solid reputations and loyal customers, which make them further resistant to economic instability and sector competition.

Revenue plummeted 25% year-over-year to $1.8 billion, but did fractionally beat estimates. Consumer staple companies will “be able to keep putting up solid earnings growth even as most other industries will experience down numbers,” Cramer said. Amazingly, the sector’s long-term performance has also been one of the best. The sector has demonstrated a remarkable ability to generate consistently high returns on invested capital, avoiding the mean reversion experienced by many other highly profitable industries. 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.

The consumer staples sector has outperformed all but one sector since 1962. According to the S&P Dow Jones Indices, for most of the 10 years ending April 26, 2021, the consumer staples sector returned 8.20% annually. Compare this to the 11.86% return of the S&P 500 over the same period.

In fact, the market research firm Kantar ranked Lifebuoy as the global #3 most chosen FMCG brand in 2020, just below Coca-Cola (KO) and Colgate (CL) – an astonishing fact given the age of the brand. While the brand is largely absent from shelves here in the UK, it is a juggernaut in Asian markets, and is the #1 brand in India. The stocks are listed according to their hedge fund sentiment, which was taken from Insider Monkey’s database of 895 elite hedge funds. These 10 simple stocks can help beginning investors build long-term wealth without knowing options, technicals, or other advanced strategies. The Consumer Staples sector has a total of 240 stocks, with a combined market cap of $3,805.6 billion, total revenue of $2,856.32 billion and a weighted average PE ratio of 24.23. This is to be expected since the average includes data from the previous, lower priced days.

September Rally? 3 Consumer Staples Stocks to Buy Before Liftoff

While inflation has eaten away at some consumer staples stocks, analysts are projecting more than 10% revenue expansion this fiscal year and mid-single-digit growth in fiscal 2023. Earnings are also expected to jump 8% to 10% for both fiscal years on top of that. Over the past decade, consumer staples stocks have outperformed the broader market. The S&P 500 Consumer Staples Index has gained an average of 9.4% annually, while the S&P 500 Index has gained an average of 7.2% annually. While consumer staples stocks have many advantages, there are also some potential drawbacks.

By investing in a consumer staple ETF, investors can gain exposure to a diversified portfolio of companies in this sector, which can reduce risk and increase returns. Food stocks within the consumer staples sector are an excellent example of this. Consumers are likely to buy more food products during recessions as they cut back on dining out to conserve funds during difficult economic times. You now have a solid understanding of how to use the dividend-paying consumer staples stocks spreadsheet to find compelling investment ideas. The next section will provide a summary of why the consumer staples sector merits an allocation in your investment portfolio. Like other consumer staples companies, P&G received a healthy boost from the pandemic.

L’Oreal is a French company that manufactures a range of personal care products, including cosmetics. The company started in 1909 when a chemist invented a hair dye and has since grown into the world’s largest cosmetics company. No matter which https://bigbostrade.com/ consumer staple ETF you choose, be sure to do your homework before investing. Read the fund’s prospectus and research the individual stocks that make up the fund. By doing so, you’ll be better equipped to make an informed investment decision.

As long as prices remain above the average there is strength in the market. Review financial statements, leadership team experience and competitive advantages to find your best consumer staple stock picks. Consumer staples companies are also exposed to regulatory risk, particularly tobacco companies and makers of over-the-counter medicines.

Consumer Staples Stock #7: Newell Brands (NWL)

“You couple this with the fact that there are other yield alternatives now relative to the yield-rich sector of staples.” Research Sector and Industry performance  Get the latest news and analysis for vela martillo sectors and industries. Registration only takes a minute and gives you access to many different things, from personal watchlists to the ability to track your own predictions and interesting games.

That makes the competition among suppliers very challenging in an environment where commodity prices are rising. To compete on price consumer staples producers must be able to keep their costs down by adopting new technologies and processes, or they must differentiate by introducing innovative products. Consumer staples are considered to be non-cyclical, meaning that they are always in demand, year-round, no matter how well the economy is—or is not—performing. Also, people tend to demand consumer staples at a relatively constant level, regardless of their price.

Companies with quarterly EPS or revenue growth of more than 1,000% were excluded as outliers. E.l.f produces primarily value-priced, clean, cruelty-free beauty products. The company holds top market share positions in cosmetic brushes, makeup primers, concealers, eyebrow makeup and cosmetic sponges. The company produced net sales of $392 million in fiscal year 2022.

Research Consumer Staples at Fidelity

People tend to drink at least the same amount (if not more) when times get tough. For dynamically-generated tables (such as a Stock or ETF Screener) where you see more than 1000 rows of data, the download will be limited to only the first 1000 records on the table. For other static pages (such as the Russell 3000 Components list) all rows will be downloaded. In theory, the direction of the moving average (higher, lower or flat) indicates the trend of the market.

If you’re looking to invest in consumer staple stocks, one way to do so is through consumer staple ETFs. Consumer staple ETFs offer investors exposure to a basket of consumer staple stocks, which can provide diversification and reduce risk. Although there are no substitutes for consumer staples goods, consumers have a lot of options when shopping for the cheapest products.

Despite the persisting macro problems, Q1’s performance aligned with management’s forecasts and anticipate gradual improvements throughout the year. Its adjusted diluted earnings per share came in at $1.18, up 5.4% year-over-year, while its net revenues declined by 2.9% year-over-year. Management reaffirmed its 2023 full year guidance range of adjusted diluted earnings per share of between $4.98 and $5.13, reflecting a potential growth range of 3-6% year-over-year.