Should Investors Add These Consumer Staples Stocks To Your Watchlist This Week?
As we enter a new trading week, investors will be anticipating the upcoming consumer price index (CPI) set to be out on Friday. Analysts are expecting CPI to come in at 8.2% year-over-year, just below 8.3% in April. Regardless of whether you believe that inflation has peaked, investors heading into the stock market this week may be considering the likes of consumer staples stocks. Since consumer staples are always in demand, stocks in this segment of the market tend to be able to weather through any economic challenges.
Within the sector, investors could be watching the likes of Campbell Soup Company (NYSE: CPB). The company will be reporting its earnings for the most recent quarter on Wednesday before the bell. As it stands, analysts are expecting revenue to come in at $2.03 billion with earnings of $0.61 per share. Elsewhere, we have Ollie’s Bargain Outlet (NASDAQ: OLLI). The company will also be releasing its quarterly financials on Wednesday. Bank of America (NYSE: BAC) recently gave Ollie’s a double upgrade from underperform to buy with a price target of $75. With that being said, here are five consumer staples stocks to watch in the stock market today.
Consumer Staples Stocks To Buy [Or Avoid] Today
- Hormel Foods Corp (NYSE: HRL)
- Dollar Tree Inc. (NASDAQ: DLTR)
- Dollar General Corp. (NYSE: DG)
- BJ’s Wholesale Club Holdings Inc. (NYSE: BJ)
- The Coca-Cola Company (NYSE: KO)
Hormel Foods is a food processing company that produces a range of meat and food products. It mainly operates in four segments, Refrigerated Foods, Grocery Products, Jennie-O Turkey Store, and International & Other. The company serves over 80 countries with brands that include the likes of Planters, Columbus, SPAM, and Skippy among other beloved brands. And for a sense of scale, the company has approximately 20,000 employees.
On Thursday last week, the company posted record sales and double-digit earnings growth for its second quarter. For starters, net sales were up by 19% from $2.61 billion to a record $3.1 billion. Besides that, operating income was $335 million, an increase of 16%. As for its profits, Hormel posted diluted earnings per share of $0.48, rising by 14% compared to last year. With the company pulling in strong numbers, should you invest in HRL stock?
Following that, we have Dollar Tree, a leading operator of discount variety stores. It has over 16,000 stores across North America and is supported by a coast-to-coast logistics network and more than 193,000 associates. The company is also one of the fastest-growing retailers in the U.S. and offers an assortment of merchandise for the whole family. This would range from household items to health and brand-name foods.
On May 26, Dollar Tree reported its results for the first quarter of the year. The company reported net sales of $6.9 billion. This represents an increase from the $6.48 billion it reported in 2021 and is up by 6.5% year-over-year. Its comparable store sales saw growth as well, increasing by 11.2%. As for its profits, Dollar Tree brought in record earnings per share of $2.37, rising by 48.1% year-over-year. CEO Michael Witynski also shared, “Importantly, other key strategic initiatives, including the expansion of the $3 and $5 Plus assortment in Dollar Tree stores, as well as our Combo Stores and H2 Renovations at Family Dollar are working.” All in all, will you be watching DLTR stock?
Similar to Dollar Tree, 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?
BJ’s Wholesale Club
BJ’s Wholesale Club is a membership-only warehouse club chain that operates across the U.S. The company operates over 200 clubs and over 150 BJ’s gas locations in 17 states. It aims to deliver significant value to its members by offering more savings compared to traditional supermarket competitors. Over the past year, BJ stock has risen over 25%. Last month, BJ’s reported its first-quarter earnings for the year.
Starting with revenue, the company reported net sales worth $4.4 billion. For comparison, this is up by 16.3% from a year ago. Besides that, BJ’s also saw its total comparable club sales increase by 14.4% year-over-year, while digitally enabled sales grew by 26%. Moving on to profits, BJ’s raked in an adjusted net income of $112.5 million, up from $81.6 million a year ago. More customers seem to be shopping at BJ’s as well, with its membership fee income increasing by 11.9% year-over-year. Given its performance, this quarter, is BJ stock a buy?
Coca-Cola is a beverage company that sells its products in more than 200 countries and territories. Its multiple billion-dollar brands are spread across several beverage categories worldwide. Namely, these include soft drink brands such as Coca-Cola, Sprite, and Fanta to name a few. Besides soft drinks, the company also offers sports, coffee, and tea brands. For a sense of scale, the company has more than 700,000 employees across the globe.
On April 25, the company announced its first-quarter financials. Coca-Cola reported a net revenue of $10.49 billion, representing an increase of 16% from $9.02 billion the year before. As for its profits, the company brought in $2.78 billion. This represents a rise of 24% from $2.25 billion last year. Besides that, earnings per share improved to $0.64, up 23% compared to the prior year’s quarter. All in all, the company was able to surpass analysts’ estimates for the quarter partly thanks to inflation-fueled price increases. As such, should you keep tabs on KO stock?