Consumer staples stocks, or those that produce essential goods and services, are often thought of as safe investments. After all, people will always need food, clothing, and shelter. However, consumer staples stocks can be a volatile investment, and it is important to understand the risks before investing. The consumer staples sector is sensitive to changes in the economy, and rising interest rates can lead to a decrease in demand for these products.
In addition, competition from other sectors, such as Technology or Healthcare, can also put pressure on consumer staples stocks. For these reasons, it is important to do your research before investing in consumer staples stocks in the stock market right now. Some examples of the more popular names in the stock market today are companies such as; Walmart Inc. (NYSE: WMT), Coca-Cola Company (NYSE: KO), and The Kroger Company (NYSE: KR).
While there may be some risks involved, consumer staples stocks can still be a good investment if you are willing to accept the volatility. With this in mind, check out these two top consumer staples stocks for your mid-September 2022 watch list.
Consumer Staples Stocks To Invest In [Or Sell] Today
- Unilever PLC (NYSE: UL)
- PepsiCo Inc. (NASDAQ: PEP)
Unilever PLC (UL Stock)
Starting us off today, Unilever PLC (UL) is a British-Dutch multinational consumer goods company. For starters, Unilever’s products include food, beverages, cleaning agents, and personal care products. Notably, some of the more popular brand names within Unilever’s portfolio are the likes of Lipton, Knorr, Hellmann’s, Magnum, Dove, and Lynx/Axe to name a few. Currently, Unilever PLC has an annual dividend yield of 3.6%.
Just back in July, the company announced its first half of 2022 financial and operating results. In detail, the company reported that its earnings were impacted by inflation, but Unilever is optimistic that it should recover from 2023. What’s more, Unilever reported that turnover increased 8.1% in local currencies and 14.9% in Euros. Meanwhile, earnings per share for the first half of 2022 gained 1.0% in Euros.
Furthermore, the company’s CEO Alan Jope said this in its release to shareholders, “Unilever has delivered a first half performance which builds on our momentum of 2021, despite the challenges of high inflation and slower global growth. Underlying sales growth of 8.1% was driven by strong pricing to mitigate input cost inflation, which, as expected, had some impact on volume. We are now raising our sales guidance for the year. Underlying operating margin was on track at 17% for the first half.” Year-to-date, shares of UL stock are down over 15% as of Monday’s lunchtime trading session at $45.12 per share. Considering this, will you be watching UL stock in the stock market today?
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PepsiCo Inc. (PEP Stock)
Next, PepsiCo Inc. (PEP) is one of the world’s largest food and beverage companies. In brief, PepsiCo’s product portfolio includes some of the most well-known brands in the food and beverage industry, including Pepsi, Gatorade, Doritos, and Quaker. As of today, PepsiCo has an annual dividend yield of 2.67%.
Additionally, also in July, Pepsi Co. announced stronger-than-expected second-quarter 2022 financial results. Getting straight to it, the company reported earnings of $1.86 per share and revenue of $20.2 billion. For clarity, the analysts’ consensus estimates for the quarter were earnings and revenue of $1.73 per share and $19.5 billion. In addition, PepsiCo said it reaffirmed its full-year 2022 earnings of approximately $6.63 per share, while now projecting revenue of approximately $85.83 billion.
Separate from that, in August, PepsiCo announced that it will release its third-quarter 2022 financial results on Wednesday, October 12, 2022. Year-to-date, shares of PEP stock are down 3.09% as of Monday’s early-afternoon trading session at $167.66 per share. With this in mind, do you think PEP stock is a good consumer staple stock to invest in now?
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