Are These Top Consumer Staples Stocks On Your April 2022 Watchlist?
As mentions of a possible recession continue to make the rounds, investors could be looking for recession-proof stocks now. By and large, this could lead to consumer staples stocks taking center stage in the stock market today. To begin with, major financial institutes are already weighing in on the possibility of a U.S. economic recession. According to analysts over at Deutsche Bank (NYSE: DB), this could happen across the U.S. and Europe by 2024. The firm cites the ongoing conflict in Ukraine alongside surging inflation as core reasons for this.
Now, with all this in mind, it is understandable that investors would be eyeing the top consumer staples stocks around. After all, this part of the stock market is home to organizations that provide crucial services and goods to consumers. The likes of which will likely remain in demand even as consumer prices increase. For one thing, the latest print on the Consumer Price Index (CPI) from March could further amplify such a move in markets. In brief, the March CPI reading is now in at a staggering 8.5% year-over-year increase. This tops consensus estimates of an 8.4% increase, marking its fastest jump since 1981. As such, it could be a wise play to get acquainted with consumer staples stocks.
Namely, businesses that fall in this category include grocery chain operators, household product manufacturers, and day-to-day pharmaceutical providers. For instance, Costco (NASDAQ: COST) would be a major name to consider among consumer staples stocks now. In March, Costco’s comparable-store sales jumped by a sizable 17.2%. Meanwhile, even food producers like Bunge (NYSE: BG) are gaining traction as wheat prices rise. Should reading all this have you keen on consumer staples stocks now, here are three more to consider.
Consumer Staples Stocks To Buy [Or Sell] Today
- Beyond Meat Inc. (NASDAQ: BYND)
- Albertsons Companies Inc. (NYSE: ACI)
- Kraft Heinz Company (NASDAQ: KHC)
Beyond Meat Inc.
For starters, we will be taking a look at Beyond Meat. In essence, it is a leading player in the plant-based meat business today. Through its massive portfolio of meat alternatives, Beyond Meat offers consumers a wide variety of products. All of which consist of simple ingredients that are free of GMOs, hormones, cholesterol, and antibiotics. To put things into perspective, Beyond Meat’s products are currently available in over 130,000 locations across 90 countries worldwide.
Even with its immense operations, the company does not seem to be slowing down anytime soon. As of earlier today, the company is expanding the distribution of its meatless chicken tenders. In detail, Beyond Meat’s “Beyond Chicken Tenders” are now available in 8,000 new grocery, pharmacy, and big-box retail locations nationwide. The current expansion involves partnerships with the likes of Kroger (NYSE: KR), Amazon’s (NASDAQ: AMZN) Whole Foods Market, and CVS Health (NYSE: CVS).
Commenting on the company’s latest move is chief growth officer Deanna Jurgens. She notes that Beyond Meat is focusing on growing the accessibility of its products to a growing customer base. Not to mention, this would be another logical step in the company’s growth strategy. This is apparent seeing as Beyond Meat spent most of 2021 developing fast-food partnerships. Overall, with the company seemingly kicking into high gear now, BYND stock could be worth keeping an eye on. Would you agree?
Albertsons Companies is a leading food and drug retailer in the U.S. It has over 2,000 retail stores with 1,722 pharmacies and over 400 associated fuel centers. The company also operates its stores across 34 states and the District of Columbia. Its well-known brands include Albertsons, Safeway, and Acme among others. It also has over 290,000 associates and the company continues to innovate, enhancing its digital and product offerings.
Today, the company reported its fourth-quarter and full-year financials. Diving in, identical sales increased by 7.5% year-over-year. Digital sales also increased by 5% year-over-year. Albertsons also reported a net income of $455 million, or $0.79 per share. “We are pleased with our fourth quarter and full-year 2021 results and the continuing momentum we are seeing as we enter 2022,” said Vivek Sankaran, CEO. “Our strategy is working, and we are executing well against industry-wide pressures. We want to recognize and thank all of our retail, distribution, and manufacturing teams for their commitment to and care of our customers and their communities.”
In late March, the company also announced that it has expanded affordable access to fresh food and wellness products for millions of customers. The new program provides convenient access to customers using pre-paid cards funded by Medicare Advantage plans, employer incentives, healthcare providers, or local governments, furthering the company’s commitment to supporting the health and well-being of the communities it serves. All things considered, is ACI stock worth investing in at this moment?
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Kraft Heinz Company
Following that, we have Kraft Heinz, a consumer staples company that is committed to growing its iconic and emerging brands on a global scale. It also continues to invest in its brands for long-term value creation. The company also has significant synergy opportunities with a strong platform for organic growth in North America and the rest of the world. In fact, it is one of the biggest food companies in the world and has operations in over 40 countries.
Last week, Kraft Heinz announced that it has completed its acquisition of Hemmer, a Brazilian food company focused on condiments and sauces. Hemmer is a 107-year-old company that will expand Kraft Heinz’s international Taste Elevation platform with its focus on condiments and sauces. The acquisition will also allow the company to increase its presence in emerging markets. The acquisition will accelerate the growth of both companies, whose brands and portfolios complement one another. Hemmer will also benefit from Kraft Heinz’s distribution network and go-to-market model in Brazil.
In February, the company also announced an exclusive long-term agreement with J.R. Simplot Company, with Simplot being the exclusive manufacturer and supplier of Ore-Ida. Simplot is a leading expert in potato manufacturing and distribution and will help grow the Ore-Ida brand by introducing world-class innovation and technology to the business. It will also provide greater efficiencies through vertical integration. The likes of which include supplying potatoes for the brand starting with the 2023/24 crop season. With all this in mind, would you consider buying KHC stock?