4 Best Consumer Staples Stocks to Buy in 2023 The Motley Fool

Due to their low volatility, consumer staples stocks are considered to play a key role in defensive strategies. First of all, consumer staples stocks are very recession-resistant by definition. Consumer staples companies make products or deliver services that are considered to be ‘staples’ – in other words, consumers can’t do without them.

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.

Coke, PepsiCo Earnings Should Drive Consumer Staples ETFs

These companies are generally considered noncyclical and will enjoy growth independent of wider economic circumstances. Procter and Gamble, Coca-Cola, and General Mills are some of the major players in the sector. Over the past decade, consumer staples stocks have outperformed the broader market.

Research Sector and Industry performance  Get the latest news and analysis for sectors and industries. Recent stocks from this report have soared up to +178.7% in 3 months – this month’s picks could be even better. Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024.

• Fortunately, the news didn’t immediately spook the investment community.
• Below are seven top consumer staples stocks analysts like for 2023, ordered from largest market cap to smallest.
• If you’re new to investing, or you’d like to change up your current investing accounts, be sure to check out Forbes Advisor’s list of the best online brokerages and the best investment apps.
• Our selection of sector- and industry-level mutual funds can help you gain the exposure you’re looking for.
• The stocks included in the list are set to outperform the market over the next 12 months.

For the full year, Coca-Cola now sees organic revenue growth of 8% to 9% for this year and for adjusted EPS to rise between 9% and 11%. This growth will easily allow the company to raise its dividend each year. Unilever is a consumer goods multinational headquartered in London.

Stocks Are Going Down. It’s Time to Play Defense, Strategist Says.

Forbes’ top investment experts share 7 overlooked stocks for the year ahead in this exclusive report, 7 Best Stocks To Buy for 2023. Access to our research can help you better understand the industries and companies Bill williams trader that make up this sector, with timely performance data and stock, mutual fund, and ETF screeners. It can be very profitable to buy stocks with rising earnings estimates, as stock prices respond to revisions.

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. For FY 2023, net sales rose 6.4% to $12.3 billion, and adjusted EPS increased 17.4% to $2.77. 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.

Are consumer staples stocks right for you?

The composition of a consumer staple ETF may vary depending on the specific ETF. Some ETFs may focus on companies that produce food and beverages. In contrast, others, like the Vanguard Consumer Staples ETF, may focus on a broader range of companies that make consumer staples products.

These products are generally resistant to changes in consumer behavior and economic conditions and are considered safe and reliable investments in times of uncertainty. Consumer staple ETFs typically invest in many companies, including large- and mid-cap stocks. These companies often have established brand names, a history of stable earnings and dividends, and a relatively low level of volatility compared to other sectors. These factors make them attractive to investors looking for a more stable and defensive investment option. But what are consumer staples stocks, and why should you consider adding them to your investment portfolio?

Look Beyond Defensive Stocks for High Dividend Yields

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 https://investmentsanalysis.info/ in fiscal year 2022. The company is scheduled to release fourth quarter fiscal 2023 results on May 24. Coca-Cola pays an annual dividend per share of $1.84 for a yield of 2.9%.

This will provide stability in sales and profits for one of Wall Street’s best consumer staples stocks, regardless of the macroeconomic environment. The consumer staples sector consists of companies providing basic goods and services. This sector includes food and beverages, personal care, and home appliances. The consumer staples sector is generally considered defensive because consumer demand for basic goods and services is relatively insensitive to economic cycles.

#37 – Conagra Brands

Security can make them more attractive to investors looking for companies with long-term growth potential and stability. Thanks to these qualities, consumer staples stocks can show relative strength in their share prices when the investing climate is rocky. Investors looking for safety will seek greater exposure to predictable, reliable business models—which is where many consumer staples stocks shine.

Changes in the regulatory environment can lead to higher costs and lower business results. Monster Beverage through its subsidiaries produces and sells energy drinks under brand names Monster Energy, Burn, NOS, Full Throttle, Reign and Predator. The company has a relatively narrow focus on energy drinks but has recently moved into the alcohol sector with a malt beverage offering.

S&P Sectors – consumer staples

In addition, consumer staples stocks have benefited from several tailwinds in recent years. The aging of the population has led to increased demand for healthcare products and services. The rise of the middle class in developing countries has led to increased demand for consumer staples products. In addition, consumer staples companies often have established brand names and loyal customer bases, which can provide a degree of protection against competition.