Do You Have These Consumer Staples Stocks On Your Watchlist Right Now?
As inflationary and geopolitical pressures continue to weigh heavily on the stock market, volatility persists. As such, investors could be turning towards safer sectors such as consumer staples. Consumer staples stocks consist of companies that produce and sell items that are considered essential for everyday use. These would include the likes of dry food, beverages, and hygiene products to name a few. With these products always having demand regardless of the economic situation, it is unsurprising that the consumer staples sector has performed respectably in the stock market over the past couple of years.
Take Coca-Cola (NYSE: KO) for example. In its recent quarterly earnings report, the company said its unit case volume rose by 8% during the quarter, fueled by demand for drinks like Powerade and Coke Zero Sugar. Elsewhere, PepsiCo (NASDAQ: PEP) managed to grow its organic revenue by 13.7% and more than double its net income to a massive $4.26 billion in the past quarter. With the two consumer staples companies posting excellent figures, here are four other consumer staples stocks to watch in the stock market today.
Consumer Staples Stocks To Buy [Or Sell] In May 2022
- Tyson Foods Inc. (NYSE: TSN)
- Energizer Holdings Inc. (NYSE: ENR)
- Mondelez International Inc. (NASDAQ: MDLZ)
- The Archer-Daniels-Midland Company (NYSE: ADM)
Starting us off today is Tyson Foods, a food company that produces a range of frozen and refrigerated food products. It operates a portfolio of products and brands including Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, and State Fair. Apart from that, the company also has an integrated operation that consists of breeding stock, contract farmers, feed production, processing, and transportation of chicken and related products. Notably, TSN stock has risen by about 17% over the past year. This week, the company posted its second-quarter results for the year.
Diving in, the food company brought in sales of $13.12 billion for the quarter, up by 17.6% year-over-year from $11.3 billion. In detail, sales volume for beef rose by 11% in the second quarter thanks to strong global demand. Tyson’s average sales price increased in the first half of the year as costs increased. Despite that, demand for its beef products remained strong. Moving on to its profits, Tyson raked in $829 million in net income, a whopping 74.15% increase from $476 million last year. Accordingly, earnings per share were $2.29, jumping from $1.34 in the year prior. With that being said, is TSN stock a buy?
Following that, we have Energizer, one of the world’s largest manufacturers of primary batteries and portable lighting products. In addition to that, the company is also a leading designer and marketer of automotive fragrance and appearance products. The company’s brands include Energizer and Eveready. For a sense of scale, Energizer has six operational facilities in the U.S. and one in Singapore for the markets in Asia and Oceania. Also just this week, the company reported its fiscal first-quarter financials.
For starters, net sales came in at $685.4 million, owing to pricing actions across its segments and strong auto care demand. Although sales were roughly flat compared to the year before, Energizer brought in organic sales growth of 8.7%. Next to that, the company brought in profits of $19 million on diluted earnings per share of $0.27. For comparison, the company made a loss of $10.2 million with a loss per share of $0.21. For the rest of the year, the company is bumping its sales outlook to grow in the low single digits. Along with that, Energizer reaffirmed its guidance for adjusted earnings per share to range from $3 to $3.30. And on that note, is ENR stock worth watching?
Another notable consumer staples stock would be Mondelez. Essentially, it is a company that manufactures and markets snack food and beverage products. Its brand portfolio includes the likes of famous snack brands such as Nabisco, Oreo, Cadbury, Milka, and Toblerone to name a few. Besides that, it manufactures Trident gum, Halls candy, and Tang powdered beverages. Mondelez has operations in about 80 countries and sells its products in over 150 countries. About two weeks ago, it reported its first-quarter 2022 earnings.
To start, net revenues jumped by 7.3% to $7.76 billion, driven by organic revenue growth of 8.6% and incremental sales from the company’s acquisitions of Chipita, Grenade, and Gourmet Food. As for Mondelez’s profits, it sees adjusted earnings of $1.17 billion, rising 11.6% thanks to operating gains. As such, adjusted earnings per share were $0.84, rising 13.9% on a constant currency basis. Looking ahead, the company is updating its 2022 outlook. Namely, it now forecasts organic net revenue to grow by about 4%. Besides that, its adjusted earnings per share are expected to grow in the mid-to-high single digits. Given Mondelez’s quarterly earnings, is MDLZ stock worth adding to your watchlist?
Finally, we have Archer-Daniels-Midland, commonly known as ADM. For the most part, it is an agricultural origination and processing company. Its primary focus is on sustainable human and animal nutrition. The company doesn’t own farms. Instead, it works with growers, supporting them with services and innovative technologies. It takes natural products and turns them into staple foods, sustainable, renewable, and industrial products. In the past six months, ADM stock has grown nearly 30%. Late in April, the company reported its financials for the first quarter of the year.
Starting with revenue, ADM reported a revenue of $23.65 billion for the quarter. This marks a cool 25% climb in revenue over last year’s $18.9 billion. Moving on to profits, the company raked in a net income of $1.05 billion, a large increase of 53% from the $689 million last year. CEO Juan Luciano said, “Longer term, markets continue to reflect the importance of the enduring global trends that are fueling performance across our portfolio by driving demand for our products. And within ADM, our productivity and innovation efforts are continuing to help us deliver on the evolving needs of our customers. Considering these factors, we expect 2022 results to exceed 2021’s.” Given the strong earnings this quarter, should you invest in ADM stock?