Are These Top Consumer Staples Stocks Worth Adding To Your Portfolio Now?
As the COVID-19 situation continues to occupy the minds of many, consumer staples stocks could take center stage. Namely, this section of the stock market is home to companies whose wares are constantly in demand. As the name suggests, consumer staples often provide for the daily necessities of the general public. This would include food items, household supplies, and even day-to-day medication. Understandably, consumers could be turning to said companies to stock up on supplies amidst times of uncertainty. Likewise, I could see investors flocking to this sector of the stock market today as well.
For instance, we could look at the likes of Procter & Gamble (NYSE: PG) and Walmart (NYSE: WMT). On one hand, Procter & Gamble is a multinational consumer goods company that operates in 70 countries worldwide. Some of its notable brands include Ambi Pur, Bounty, Febreze, and Gillette among others. On the other hand, Walmart’s grocery business continues to see strong demand across the board. So much so that it smashed estimates in its recent quarter fiscal earlier this week. Notably, the company reported an earnings per share of $1.78 on revenue of $141.05 billion versus projections of $1.57 and $137.17 billion respectively. Regardless of the current state of the world, both companies will likely continue to cater to the masses.
Not to mention, with the recent volatility in the market, investors could be looking for more defensive stocks as well. This would be where consumer staples stocks like PepsiCo (NASDAQ: PEP) that give out dividends to investors come into play. Should all of this have you interested in the industry, here are three to watch in the stock market today.
Best Consumer Staples Stocks To Buy [Or Sell] Right Now
Target Corporation
Starting us off today is the Target Corporation. In brief, Target is among the largest retailers operating in the U.S. now. For the past 75 years, the company has and continues to serve consumers across the U.S. Today, Target accomplishes this via over 1,900 stores and its e-commerce services. The likes of which are present in all 50 states and the district of Columbia. According to Target, 75% of the U.S. population lives within 10 miles of one of its stores now.
Could all of this make TGT stock a top consumer staples player to watch in the market? Well, to help with that, we could take a look at the company’s recent quarter fiscal posted yesterday. Overall, Target delivered strong figures across the board with an earnings per share of $3.64 on revenue of $25.16 billion. These exceed Wall Streets’ estimates of $3.48 and $24.51 respectively by a fair bit. By and large, the company cited growth across all five of its core merchandise categories as a core growth factor for the quarter.
Moving forward, CEO Brian Cornell had this to say, “Even after unprecedented growth over the last two years, we see much more opportunity ahead of us, and we’re leaning into opportunities to invest in the long-term growth and resiliency of our business.” Seeing as Target seems to be firing on all cylinders now, will you be adding TGT stock to your portfolio?
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Coca-Cola Company
Following that, we will be taking a look at the Coca-Cola Company. For the most part, global consumers and investors alike would be familiar with the company. This would be the case given that its massive portfolio of beverages is present in over 200 countries and territories worldwide. Today, millions of consumers turn to the company’s Coca-Cola, Sprite, and Fanta brands among others for their beverage needs. With KO stock still trading below its pre-pandemic levels, could it have more room to grow moving forward?
Well, for starters, the company does boast a long history of paying dividends to investors. In fact, Coca-Cola has been increasing its dividend yields annually for 59 consecutive years. Supporting this, the company also continues to perform on the financial front. Evidently, Coca-Cola posted solid numbers across the board in its latest quarter fiscal posted last month. The company reportedly raked in a total revenue of $10.13 billion for the quarter, marking a sizable 41% year-over-year jump. Additionally, Coca-Cola also saw 48% surges in both its net income and earnings per share over the same period.
According to CEO James Quincey, these results indicate that “business is rebounding faster than the overall economic recovery”. All in all, Coca-Cola appears to be optimistic about its long-term growth potential, raising its full-year guidance. With the company kicking into high gear, could KO stock be a top buy for you?
[Read more] Top Stocks To Buy Now? 5 Dividend Stocks To Watch
McDonald’s Corporation
Last but not least, we have the McDonald’s Corporation. If anything, McDonald’s is one of, if not the most prominent name in the fast-food industry today. Like many of its peers, the company has and continues to bolster its delivery services globally. As such, some would argue that the company’s market reach remains as massive as ever. In the U.S. alone, McDonald’s serves nearly 25 million customers daily via its network of over 13,500 restaurants.
Now, MCD stock is currently up by over 60% since its pandemic era low and continues to trade towards newer heights. The real question now is, can the company maintain its current momentum even as coronavirus concerns rise? For one thing, the company seems to be seeing continued demand for its offerings. This is apparent seeing as McDonald’s reported stellar figures in its second-quarter fiscal posted late last month. In it, the company reported a solid 56% year-over-year increase in quarterly revenue. Over the same period, McDonald’s also saw massive gains of 358% in net income and 353% in earnings per share.
At the same time, the company’s latest collaborations and new menu items seem to be making waves as well. According to McDonald’s, the company’s Crispy Chicken Sandwich was a key growth driver for the quarter. To the extent where McDonald’s saw its U.S. same-store sales outpace 2019 levels by 14.9%. Would you say that all this makes MCD stock worth investing in now?
