Consumer staples stocks are a type of equity that refers to publicly traded companies whose products are considered essential or necessary for everyday life. This can include food, beverage, and household goods producers as well as retailers who sell these items. The demand for consumer staples is relatively inelastic, meaning that it is not greatly affected by changes in economic conditions.
As a result, these stocks tend to be less volatile than other types of equities and can provide a measure of stability for a stock market investment portfolio. In addition, consumer staples stocks are typically defensive in nature, meaning that they perform relatively well during periods of a market downturn. For these reasons, they are often considered to be a core holding for long-term investors. Now knowing this, if you’re looking at the consumer staples sector, here are four companies for your late September 2022 radar.
Consumer Staples Stocks To Buy [Or Avoid] Now
- Philip Morris International Inc. (NYSE: PM)
- Anheuser-Busch Inbev SA (NYSE: BUD)
- The Estee Lauder Companies Inc. (NYSE: EL)
- Mondelez International Inc. (NASDAQ: MDLZ)
1. Philip Morris International (PM Stock)
Philip Morris International (PM) is an international tobacco company. The company has a broad product portfolio that consists of cigarettes and reduced-risk products, including heat-not-burn, vapor, and oral nicotine products, among others. Currently, PM shareholders enjoy an annual dividend yield of 5.1%.
PM Recent Stock News
Just in July, Philip Morris International (PM) announced stronger-than-expected 2nd quarter 2022 financial results. Diving right in, PM reported earnings of $1.48 per share, with revenue of $20.4 billion for Q2 2022. This is versus analysts’ consensus earnings estimate of $1.24 per share and revenue of $6.7 billion. What’s more, the company also revised its outlook for full-year 2022 earnings. In detail, the company said it estimates 2022 earnings per share in the range of $5.90 to $6.04 per share. For context, Philip Morris previously said they were projecting earnings of $5.45 to $5.56 per share for the full-year 2022.
Jacek Olczak, Chief Executive Officer stated, “We are raising our outlook for the full year and now expect to deliver pro forma adjusted growth in net revenues of 6% to 8%, on an organic basis, and diluted EPS of 10% to 12%, excluding currency, underpinned by pro forma heated tobacco unit shipment volume of 90 to 92 billion units.”
PM Stock Chart
As of Friday’s afternoon trading session, shares of PM stock are trading down over 4% at $91.17 per share. Keeping this in mind, should investors add Philip Morris stock to their radar today?
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2. Anheuser-Busch InBev (BUD Stock)
Next, Anheuser-Busch InBev (BUD) is the largest brewer in the world. As well as one of the world’s top five consumer product companies, as measured by EBITDA. The company’s portfolio currently includes five of the top 10 beer brands by sales and 18 brands with combined retail sales of over $1 billion.
BUD Recent Stock News
In July, Anheuser-Busch InBev released its second quarter 2022 results. In the report, the company reported earnings of $0.75 per share, along with revenue of $14.8 billion for Q2 2022. The street’s consensus earnings estimate for the second quarter was $0.73 per share and revenue of $14.8 billion. In addition to that, the company reported a revenue increase of 9.3% during the same period, in 2021.
Furthermore, Michel Doukeris, CEO of BUD had this to say about the quarter’s performance, “Our business delivered sustained profitable growth. Our volume increased by 3.4%, our top-line by 11.3%, and EBITDA by 7.2%. The relentless execution of our strategy, the strength of our brands, and accelerated digital transformation enabled us to meet the moment in an ongoing dynamic operating environment.”
BUD Stock Chart
Meanwhile, shares of BUD stock are down 21% year-to-date. During Friday’s afternoon trading session BUD stock is trading at $46.38 per share.
3. Estee Lauder Companies (EL Stock)
Following that, Estee Lauder Companies (EL) is one of the world’s leading manufacturers and marketers of skincare, makeup, fragrance, and hair care products. The company has more than 20 brands, including Estee Lauder, Clinique, Origins, MAC, Bobbi Brown, Aveda, La Mer, and Jo Malone London being sold in approximately 150 countries worldwide.
EL Recent Stock News
Last month, Estee Lauder Companies reported its fiscal 2022 financial results. Diving into the release, the company reported full-year net sales of $17.74 billion for its fiscal year ending June 30, 2022. This represents a 9% increase on a year-over-year basis. Additionally, EL saw an 8% in organic net sales. Separate from that, EL shareholders currently receive an annual dividend yield of 1.06%.
Fabrizio Freda, President, and Chief Executive Officer said, “We delivered excellent results in fiscal 2022, exceeding our expectations in the fourth quarter and achieving record revenue and profitability on an adjusted basis for the year. Our multiple engines of growth strategy proved invaluable amid pandemic and macro complexity, affording us the diversification to seize growth of the moment. The Americas and EMEA prospered, Fragrance soared, and Makeup realized the promise of its emerging renaissance.”
EL Stock Chart
Continuing on, going into Friday’s power hour session, EL stock is down over 3% on the day at $226.43 per share. All in all, do you think Estee Lauder stock deserves a spot on your consumer staples stocks watchlist?
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4. Mondelez International (MDLZ Stock)
Finishing off this list, Mondelez International (MDLZ) is an American multinational confectionery, food, and beverage company. Mondelez owns some of the world’s best-known snack brands, including Oreo, Chips Ahoy!, Cadbury, Nabisco, and Ritz to name a couple. Today, MDLZ has an annual dividend yield of 2.64% for shareholders.
MDLZ Recent Stock News
At the end of July, Mondelez released stronger-than-expected results for its most recent 2nd quarter 2022 financials. Diving straight in, the company posted earnings of $0.67 per share and revenue of $7.3 billion for the second quarter of 2022. This is in comparison with analysts’ estimates for the quarter, which were $0.64 earnings per share, along with revenue estimates of $6.8 billion. The revenue numbers from Q2 represent a 9.5% increase on a year-over-year basis. Aside from that, Mondelez also announced a 10% increase in its quarterly dividend.
Dirk Van de Put, Chairman and Chief Executive Officer, “Our second quarter and first half results were marked by strong top and bottom-line performance across all regions and categories, supporting the raising of our full-year revenue growth outlook. Our chocolate and biscuit businesses continue to demonstrate strong volume growth and pricing resilience across both developed and emerging markets. These results combined with ongoing cost discipline, simplification and revenue growth management are delivering robust profit dollar growth and strong cash flow, enabling us to increase our dividend by 10 percent.”
MDLZ Stock Chart
As of Friday’s afternoon session, MDLZ stock is down over 2% at $58.44 per share. After reading this, do you think MDLZ stock would be a good addition to your portfolio?
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