The consumer staples sector is made up of companies that produce and market items considered essential for everyday use. Consumer staples include household items, food, beverages, hygiene products, and other items that people are unwilling or unable to eliminate from their budgets, even in times of financial trouble. As a result, these companies are considered non-cyclical and can maintain stable growth regardless of the state of the economy. Some of the big names in the industry include Procter & Gamble Co. (PG), Coca-Cola Co. (KO), and General Mills Inc. (GIS).
Consumer staples stocks, represented by the Consumer Staples Select Sector SPDR ETF (XLP), have underperformed the overall market over the past year. XLP has provided investors with a 19.0% total return over the past 12 months, well below the Russell 1000’s total return of 38.1%. These market performance numbers and all statistics in the tables below are as of July 16, 2021.
Here are the top 3 consumer staples stocks with the best value, the fastest growth, and the most momentum.
These are the consumer staples stocks with the lowest price-to-earnings (P / E) in the last 12 months. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P / E ratio shows that you are paying less for every dollar of profit generated.
|Best value consumer staples|
|Price ($)||Market Cap ($ B)||Final 12-month P / E ratio|
|Bunge Ltd. (BG)||73.59||10.4||5.1|
|Tyson Foods Inc. (TSN)||71.40||26.1||12.1|
|Spectrum Brands Holdings Inc. (SPB)||84.81||3.6||12.2|
- Bunge Ltd .: Bunge is a global agri-food company. Supplies and transports agricultural products, including sugar, ethanol, wheat, and corn. The company also processes oilseeds and cereals and sells fertilizers.
- Tyson Foods Inc .: Tyson Foods produces, distributes and markets chicken, beef, pork and prepared foods. Some of their brands include Hillshire Farm, Sara Lee, and State Fair. The company announced in early June that Chief Operating Officer (COO) Donnie King was named president and chief executive officer (CEO), effective immediately. He replaced Dean Banks, who left the company and his position on the board for personal reasons.
- Spectrum Brands Holdings Inc .: Spectrum Brands offers basic household products. Offers home builder hardware, plumbing, personal care products, small appliances, lawn and garden products, specialty pet supplies, and more.
These are the top consumer staples stocks ranked by a growth model that rates companies based on a 50/50 weighting of their most recent quarterly annual percentage revenue growth and their quarterly earnings per share (EPS) growth on a quarterly basis. more recent. Both sales and profits are critical factors for the success of a business. Therefore, ranking companies by a single growth metric makes a ranking susceptible to accounting anomalies from that quarter (such as changes in tax law or restructuring costs) that can make one or the other figure unrepresentative. of the business in general. Companies with quarterly EPS or revenue growth greater than 2,500% were excluded as outliers.
|Fastest growing consumer staples|
|Price ($)||Market Cap ($ B)||EPS growth (%)||Revenue growth (%)|
|Target Corp. (TGT)||251.15||124.3||644.6||23.4|
|Boston Beer Co. Inc. (SAM)||925.09||11.4||253.0||64.9|
|Herbalife Nutrition Ltd. (HLF)||51.29||5.5||315.6||19.0|
- Target Corp .: Target owns and operates discount grocery and general merchandise stores, as well as a fully integrated online business. The company offers a wide variety of merchandise and food in general.
- Boston Beer Co. Inc .: Boston Beer is a brewery that is in the business of producing and selling craft beers and cider products in its own breweries and various other contracted breweries. The company announced in mid-May that it was establishing a new subsidiary in Canada. The subsidiary will be a research and innovation center focused on non-alcoholic cannabis drinks. Boston Beer hired cannabis industry veteran Paul Weaver with the title of Director, Head of Cannabis, to lead the new research center.
- Herbalife Nutrition Ltd .: Herbalife Nutrition is a global nutrition company. It offers weight management products and healthy meals and snacks, as well as sports and fitness, energy and other specific nutritional products. It also sells personal care products. Herbalife Nutrition announced in early May the appointment of Mark Schissel as Chief Operating Officer. Schissel was previously Executive Vice President of Worldwide Operations and joined the company in 2007. He is set to assume his new role on August 2, 2021 and will replace David Pezzullo, who is retiring.
These are the consumer staples stocks that delivered the highest total returns in the past 12 months.
|Consumer staples with greater momentum|
|Price ($)||Market Cap ($ B)||Total return at 12 months (%)|
|Darling Ingredients Inc. (DAR)||65.58||10.7||148.5|
|Target Corp. (TGT)||251.15||124.3||109.3|
|Coty Inc. (COTY)||8.44||6.5||96.3|
|Russell 1000||N / A||N / A||38.1|
|Consumer Staples Select Sector SPDR ETF (XLP)||N / A||N / A||19.0|
- Darling Ingredients Inc .: Darling Ingredients develops and produces sustainable natural ingredients from edible and non-edible bio-nutrients. Its products are used in the pharmaceutical, food, pet food, fuel, bioenergy, fertilizer and other industries. Darling Ingredients announced financial results in May for the first quarter of its fiscal year 2021, the three-month period ended April 3, 2021. Net income increased 78.2% with a 22.7% increase in sales. net compared to the prior year quarter.
- Target Corp .: See above for company description.
- Coty Inc .: Coty is a manufacturer and distributor of beauty products. The company’s products include color cosmetics, hygiene products, fragrances, sun protection products, and skin treatments. Coty products are sold in department stores, retailers, and duty-free shops at airports around the world.
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