Is Now The Time For Investors To Double Down On These Top Consumer Stocks?
Consumer stocks have been a rather interesting sector to watch in the market. There are many types of consumer stocks out there. There are food companies related to restaurants, packaged foods, supermarkets, and much more. With the current state of the world due to the pandemic, many top food stocks have been in trouble.
On the other hand, some of the best consumer stocks to watch have been able to see an increase in share price this year. Many consumer stocks actually are higher than they were before the pandemic began. One example of this is Chipotle (CMG Stock Report) which rose to new heights in 2020. Food places that we’re able to stay open during the pandemic actually saw great benefit from it. Well, we are still experiencing this pandemic now which means that many food companies have still had lots of issues with their business.
Creators of packaged foods have had it a bit easier than restaurants. People will always need to shop at the supermarket for food, but many have refrained from eating at restaurants. Restaurants are relying on to-go orders for profit for the most part. That is why food stocks are highly volatile at the moment. Let’s have a look at two bullish consumer stocks that are defying the odds.
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Top Consumer Stocks To Watch In 2020: Kellogg
The first food stock to watch is Kellogg Company (K Stock Report) due to its ability to recover during a rough year. Kellogg produces food, primarily cereal and snacks. Some of Kellogg’s brands include Cheez-It, Frosted Flakes, Pringles, and many more. Currently, Kellogg’s products are distributed in more than 180 countries around the world. In 2018 alone, Kellogg brought in $13.547 billion in revenue.
Analysts predicted quarterly earnings for Kellogg being at $0.93 a share. Kellogg beat that consensus by reporting earnings of $1.24 a share, 33% more than what was predicted. This has caused an uptick of K stock price. Before the earnings report K stock was around $68 a share, and it has now reached $69.44 a share on average. This is more than a 2% increase of K stock price in just one day because of the earnings reported.
Before the pandemic began K stock was at around $67 a share on average. So now it is safe to say that K stock price has recovered and gone a bit higher in the market as well. The future is still unknown for K stock though. The CEO of Kellogg, Steve Cahillane, said that the future of the company is “unknowable”. Once a vaccine for the coronavirus becomes a thing, it is more possible for this food stock to rise in the market. Cahillane said in a statement, “We are going to do everything we possibly can to come out of this crisis a stronger company than we went into it”.
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Top Consumer Stocks To Watch In 2020: General Mills
The second food stock to watch is General Mills Inc. (GIS Stock Report) due to its recent market momentum as well. General Mills is a food producer that sells packaged foods primarily. Some of its brands include Totino’s, Pillsbury, Haagen-Dazs, Cheerios, Lucky Charms, and many more. General Mills has more than 100 brands under its umbrella. In 2019, General Mills brought in more than $16.87 billion in revenue.
Well, GIS stock is up 3.78% on August 3rd. This is due to a positive earnings report that General Mills released. Before the uptick GIS stock was at $62.38 a share. After the GIS stock price rose it reached $64.74 a share. GIS stock was at $53 a share before the pandemic started. So GIS stock price is up more than 22% since February.
Bottom Line
If these food stocks continue to see positive results it is possible for their price to rise higher. The only problem is that the market is highly volatile due to the state of the world at the moment. There are still many food stocks on the rise for investors to consider. That is why K stock and GIS stock are potential food stocks to buy at the start of August 2020.
