Are These The Best Consumer Staples Stocks To Buy This Week?
With volatility persisting in the stock market, and fears of a recession continuing to fester, some investors are likely looking to gravitate towards defensive investments. And to some extent, consumer staples stocks may fit the bill. For the uninitiated, consumer staples stocks comprise companies making essential products used by consumers on a daily basis. This would include the likes of packaged foods, household goods, and hygiene products. Even as prices remain elevated, these products will always be a priority in the shopping carts of customers. Hence, it sees relatively constant demand compared to its discretionary counterparts.
Investors that are keen on consumer staples stocks may be watching Colgate-Palmolive (NYSE: CL). The company’s board of directors recently declared a quarterly cash dividend of $0.47 per common share. Impressively, the company has paid uninterrupted dividends on its common stock since 1895. Apart from that, we have Procter & Gamble (NYSE: PG). Earlier this month, the consumer staple giant announced a new multi-year collaboration with Microsoft (NASDAQ: MSFT). Particularly, the two will be working together to help create the future of digital manufacturing by leveraging Microsoft’s Azure cloud platform. With that being said, check out these consumer staples stocks in the stock market today.
Consumer Staples Stocks To Buy [Or Sell] Right Now
- The Kroger Company (NYSE: KR)
- Walmart Inc. (NYSE: WMT)
- Dollar General Corporation (NYSE: DG)
- The Archer-Daniels-Midland Company (NYSE: ADM)
- The Kraft Heinz Company (NASDAQ: KHC)
First up today is Kroger. It is a retailer that operates supermarkets and multi-department stores throughout the U.S. Across its portfolio, it has nearly half a million associates that serve over 11 million customers daily. It is one of the largest supermarket chains in the U.S. by revenue. Over the past year, KR stock has risen by about 27%. Last week, Kroger posted its first-quarter 2022 results.
Getting into it, total company sales came in at $44.6 billion in the first quarter, increasing by 3.8% from the same period last year. This also exceeds analyst predictions of $44.16 billion. As for its profits, Kroger posted a net income of $664 million, or $0.90 per share, rising sharply from the $140 million, or $0.18 per share it reported last year. In the same earnings letter, Kroger also raised its full-year guidance. Accordingly, it now expects identical sales to grow by 2.5% to 3.5% and adjusted earnings per share to be in the range of $3.85 to $3.95. All in all, is KR stock a buy?
Walmart is among the top retail names in the stock market. Put simply, the company offers shopping opportunities in both retail stores and through e-commerce. Moreover, the company often promotes its services at everyday low prices to attract the interest of consumers. Elsewhere, its International segment includes various formats that include supercenters, supermarkets, hypermarkets, and e-commerce entities.
Walmart, along with Roku (NASDAQ: ROKU) announced this past week a first-of-its-kind partnership to make TV streaming the next e-commerce shopping destination. Notably, Walmart will be the exclusive retailer to enable streamers to purchase featured products fulfilled by Walmart directly on Roku’s streaming platform. Through this partnership, the two aim to evolve shopping beyond QR codes and change the way customers interact and shop TV and video content. With Walmart’s unmatched ability to evaluate customer shopping behaviors and Roku’s purpose-built advertising tech stack, the two unlock an innovative in-platform buying experience for customers. Given this unique partnership, should you invest in WMT stock?
Dollar General operates a chain of discount variety stores that span across the U.S. With over 80 years of delivering value for its consumers, the company offers everyday products that range from food to health and cleaning supplies. Today, Dollar General has over 18,000 stores and sells products from some of the country’s most-trusted manufacturers. Towards the end of last month, the company posted its first-quarter 2022 financials.
Diving in, net sales for the quarter were $8.75 billion, an increase of 4.2% year-over-year. Along with that, the company reported diluted earnings per share of $2.41. Besides, Dollar General executed more than 800 real estate projects during the quarter. It made progress in advancing its “key strategic initiatives to enhance the value and convenience proposition” for customers. All things considered, is DG stock worth adding to your watchlist?
Next, 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. Over the past year, ADM stock has risen by over 25%.
Last month, the company forged a strategic partnership with the Good Meat division of Eat Just. For those unfamiliar, Good Meat is a food company that applies science and technology to create healthy and more sustainable foods. In this partnership, the two will be working on product development projects to pioneer cultivated meat products, starting with chicken. Leticia Gonçalves, the President of ADM, said, “ADM has long been a pioneer in the alternative protein industry. Our strategic focus is on developing innovative new technology and solutions to continue expanding our capabilities to serve the fast-growing global demand for protein-based nutritional needs.” With that being said, will you be watching ADM stock?
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Another value stock to watch would be Kraft Heinz (KHC). In detail, the company manufactures and markets products such as condiments, dairy, meats, coffee, and other grocery products throughout the world. Its product portfolio includes notable brands such as Kraft, Heinz, Velveeta, Jell-O, Grey Poupon, and Philadelphia to name a few. For a sense of scale, the company is one of the largest food and beverage companies in North America.
In late April, KHC posted its first-quarter 2022 results. In brief, net sales for the quarter came in at $6 billion, with organic net sales increasing by 6.8% year-over-year. The company also posted non-GAAP earnings per share of $0.60, beating estimates by $0.07. In the same earnings report, KHC raised its guidance for 2022 organic net sales to a mid-single-digit percentage growth. This is thanks to strong performance to date and ongoing business momentum. All in all, should investors be on the lookout for KHC stock?