3 Consumer Staples Stocks To Check Out This Week
Consumer staples stocks are some of the most popular investments in the stock market. For the uninitiated, consumer staples companies produce essential goods and services that are consumed on a daily basis, such as food, beverages, household products, and personal care items. These companies tend to be less volatile than other sectors of the market and offer investors a steady stream of dividend income. For example, some of the more popular consumer staples names in the stock market today are the likes of Walmart Inc. (NYSE: WMT), and Proctor & Gamble Company (NYSE: PG)
In addition, consumer staples stocks are often less impacted by economic downturns than other sectors, making them a relatively safe investment choice. For these reasons, consumer staples stocks can be considered to be a good addition to any investment portfolio. Given this, here are three top consumer staples stocks to check out in the stock market now.
Consumer Staples Stocks To Invest In [Or Avoid] Now
- The Kroger Company (NYSE: KR)
- Albertsons Companies Inc. (NYSE: ACI)
- BJ’s Wholesale Club Holdings Inc. (NYSE: BJ)
Kroger Company (KR Stock)
First off, The Kroger Company (KR) is one of the largest grocery retailers in the United States. Kroger operates 2,765 supermarkets and multi-department stores across 35 states and the District of Columbia. Kroger also owns and operates 36 food processing plants, 1,360 supermarket fuel centers, and 37 distribution warehouses. Currently, KR shareholders enjoy an annual dividend yield of 2.00%. In addition, just this past week the company reported better-than-expected second-quarter 2022 financial results.
Diving in, the company posted Q2 2022 earnings of $0.90 per share, along with revenue of $34.6 billion. This is compared with the consensus earnings estimate of $0.84 per share and revenue estimates of $34.2 billion. Kroger also reported revenue growth of 9.3% during the same period, in 2021. Furthermore, the company raised its full-year guidance. In detail, Kroger announced it now estimates fiscal year earnings of $3.95 to $4.05 per share, versus the previous announcement of earnings of $3.85 to $3.95 per share.
Chairman and CEO Rodney McMullen commented in his letter to shareholders, “Kroger delivered strong second quarter results propelled by our Leading with Fresh and Accelerating with Digital strategy. We are incredibly thankful for our dedicated associates who continue to deliver a full, fresh and friendly customer experience.” Following this earnings release, shares of KR stock jumped over 7% this past Friday to $51.94 per share. Moreover, shares of Kroger stock are up over 14% so far in 2022. Given this strong quarter, is now a good time to buy KR stock?
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Albertsons Companies (ACI Stock)
Next, Albertsons Companies Inc. (ACI) is an American grocery company. The company operates several grocery store banners, including Albertsons, Safeway, Vons, Jewel-Osco, Randalls, Tom Thumb, Shaw’s, and Star Market. Back in July, the company reported stronger-than-expected first quarter 2022 financial results.
Getting straight to it, Albertsons Companies Inc reported Q1 2022 earnings per share of $0.95, along with revenue of $23.3 billion. Meanwhile, wall street’s consensus estimates for the quarter were earnings of $0.87 per share and revenue of $22.6 billion. What’s more, the company posted a 9.6% increase in revenue year-over-year during the same period.
In addition, CEO Vivek Sankaran said in his note to shareholders, “In the first quarter, our teams continued to deliver strong operating and financial performance across all key metrics, and we continued to gain market share. As we look forward to the balance of the year, while we are thoughtful about the macro environment and the possible implications on consumer behavior, our teams have consistently demonstrated their ability to adapt to a changing back drop in real time.” With that, shares of ACI stock have recovered over 6% this past trading week, while closing Friday’s trading session at $29.71 per share. Given this, do you think ACI stock is worth adding to your list of consumer staples stocks to watch now?
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BJ’s Wholesale Club (BJ Stock)
Lastly, BJ’s Wholesale Club (BJ) is a leading warehouse club operator in the United States. BJ’s serves its members by providing them with access to low prices on a wide range of merchandise, including groceries, electronics, home goods, and more. Moreover, just last month BJ’s Wholesale Club reported a beat for its second-quarter 2022 fiscal results.
In the report, BJ reported earnings per share of $1.06, with revenue of $5.1 billion. For context, this was better-than-expected consensus estimates that were earnings per share of $0.83, and revenue of $4.6 billion. As a result, the company notched in a 22.2% increase in revenue during the same period, a year prior. Aside from that, BJ’s Wholesale Club reported that it estimates fiscal 2023 earnings in the range of $3.50 to $3.60 per share. This is compared to the company’s previously announced guidance of roughly $3.25 per share.
Additionally, BJ’s Wholesale Club President & CEO Bob Eddy stated, “Our strong results in the second quarter were led by gains in traffic and market share as we continued to deliver tremendous value across virtually every aspect of our business. Our relentless focus on investing in our long-term initiatives has put us in a place to capitalize on current trends and deliver this strong performance.” Year-to-date shares of BJ stock are up by over 20% as of Friday’s closing bell at $78.91 per share. As a result, BJ stock has outperformed the broader market so far in 2022. With this in mind, could BJ stock be a good buy and hold for your long-term portfolio?
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