5 Trending Consumer Staples Stocks To Watch Today
Russia begins a full-scale invasion of Ukraine today, starting what could become the largest conflict in Europe since the second world war. As investors, your first instinct might be looking for the best stocks to buy during war. That’s because smart investors know that a stock market crash may not necessarily be a bad thing, but in fact a natural part of the process. And in times like these, investors would likely shift their holdings to companies that offer more stability.
What’s more, a stock market crash could also present fresh opportunities to buy great companies at low prices. For instance, consumer staples stocks could be at the top of the pecking order. After all, the industry comprises companies that produce and sell items essential for everyday use. These include household goods, food, beverages, hygiene products, and other products that are deemed a necessity. Therefore, these companies can maintain stability regardless of how the broader market is performing. Not only that, consumer staples stocks would often be good dividend stocks as well.
For example, Kimberly-Clark Corporation (NYSE: KMB), the manufacturer of personal care consumer products, currently offers a dividend yield of 3.3% and has been a notable long-term dividend aristocrat. With all said and done, it makes sense that investors are eyeing safer industries such as consumer staples right now. With all that in mind, here are some of the best consumer staples stocks to watch in the stock market today.
Consumer Staples Stocks To Buy [Or Sell] Today
- Coca-Cola Co (NYSE: KO)
- Tyson Foods, Inc (NYSE: TSN)
- General Mills, Inc (NYSE: GIS)
- Archer-Daniels-Midland Co (NYSE: ADM)
- Colgate-Palmolive Company (NYSE: CL)
As far as necessities go, a beverage company such as Coca-Cola would always be in focus. In essence, the company owns and markets non-alcoholic beverage brands. This includes sparkling soft drinks, water, sports drinks, juice, and even plant-based beverages. Many may not be aware that brands such as Fanta and Sprite are also owned by Coca-Cola. It is also noteworthy that the company recently just approved its 60th consecutive annual dividend increase. It is raising its quarterly dividend by about 5% to 44 cents per common share.
Despite its dominance in the consumer staples market, Coca-Cola rarely rests on its laurels. Last week, it unveiled a new global innovation platform, the Coca-Cola Creations. This new platform will take the company’s iconic trademark and lend it to new expressions.
In addition, it aims to surprise and engage global audiences through magical and unexpected tastes, moments, and collaboration. The first product to launch under this new platform is Coca-Cola Starlight. Given these exciting new developments, would you consider KO stock a top consumer staples stock to buy?
Tyson Foods is 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.
Also, the company has an integrated operation that consists of breeding stock, contract farmers, feed production, processing, and transportation of chicken and related products. TSN stock has been rising steadily over the past year, climbing more than 30% during the period.
Earlier this month, Tyson announced its fiscal first-quarter financial report. Its GAAP earnings per share skyrocketed to $3.07, representing an increase of 140% year-over-year. Meanwhile, its total sales increased to $12.9 billion, up 24% over the past year. All in all, the company’s performance shows the resilience of its multi-protein portfolio despite all the marketplace volatility. With that said, would you consider buying TSN stock today?
Another top name to consider today is General Mills. Put simply, the company is a manufacturer and marketer of branded consumer foods sold through retail stores. Whether it is branded or unbranded food products, it is one of the major suppliers to the North American foodservice and commercial baking industries. Similar to many consumer staples stocks, GIS stock has shown great resilience in the stock market. It has risen approximately 19% over the past year.
At the Consumer Analyst Group of New York (CAGNY) 2022 Conference on Tuesday, the company provided several updates that would likely excite its investors. For starters, it highlighted its progress in advancing its Accelerate strategy.
General Mills is prioritizing its core markets, global platforms, and local gem brands that have the best prospects for growth. The main goal of the strategy is to deliver profitable growth and top-tier shareholder returns. By and large, the company appears to be trending in the right direction. So, would you consider buying into the future of GIS stock?
Unlike the previous entries that focus on food and beverages, Archer-Daniels-Midland (ADM) 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.
As a result, it takes natural products and turns them into staple foods, sustainable, renewable, and industrial products. Investors who bought ADM stock a year ago would have seen gains of over 25%.
Recently, ADM announced the successful pricing of its first sustainable bond. Many view this as an important milestone for the company as it will support initiatives that would advance the company’s goals across the environmental, social, and governance spectrum. ADM intends to use the net proceeds from the offering to finance or refinance projects that meet certain criteria outlined in its Sustainable Financing Framework. All things considered, do you see ADM stock as a viable long-term investment?
Regardless of the state of the economy, household and consumer products will continue to be in demand. Hence, companies such as Colgate-Palmolive often come to mind when investors look for defensive stocks. While being renowned for its oral and personal hygiene products, Colgate-Palmolive also has products in various other product categories. These include home care products such as Ajax, Axion, and Palmolive dishwashing liquids.
As the worldwide leader in oral care, the company seeks opportunities to address any global health issues. Not long ago, Colgate announced the launch of a public health initiative to empower people to Know Your OQ™.
Similar to how many are curious about their IQ or EQ, Colgate believes that people should know their oral health quotient and understand the links between oral health and overall health. Therefore, it will be committing more than $100 million over the next five years to ensure that oral health is incorporated into broader public health strategies. On that note, is CL stock worth investing in right now?