The consumer sector is a broad category in the stock market that includes companies providing goods and services directly to consumers. Within this sector, consumer staples stocks represent firms that produce or sell essential products such as food, beverages, household, and personal care items. These products are generally considered necessities, which people need regardless of economic conditions. This inherent demand tends to provide the consumer staples sector with a stable revenue base.
Investing in consumer staples stocks offers several advantages, notably their potential for steady performance during various economic cycles. Since consumer staples are essential items, these companies often maintain consistent demand, leading to relatively stable earnings. This stability can make consumer staples stocks a safe haven during economic downturns. Moreover, many companies in this sector pay dividends, which can be appealing to income-focused investors.
However, there are also disadvantages to consider. Consumer staples stocks typically offer lower growth potential compared to consumer discretionary stocks or other sectors like technology. In booming economic times, they might not see the same gains as more cyclical industries. Additionally, global supply chain issues or changes in commodity prices can impact profitability. Investors should weigh these factors and consider their own financial goals and risk tolerance when investing in this sector. As such, here are two consumer staples stocks to watch in the stock market now.
Consumer Staples Stocks To Buy [Or Sell] Now
The Coca-Cola Company (KO Stock)
Let’s begin with The Coca-Cola Company (NYSE: KO). The company is a global beverage leader widely recognized for its flagship product, Coca-Cola. The company offers a diversified beverage portfolio that includes sparkling soft drinks, water, juices, teas, coffees, and energy drinks. In addition, today, the company offers an annual dividend yield of 3.29%.
At the end of last month, Coca-Cola Company announced that it will release its first quarter 2024 financial results on April 30, before the New York Stock Exchange opens. This announcement was followed by details of an investor conference call scheduled for 8:30 a.m. ET on the same day to discuss the quarterly results.
Looking at the last six months of trading, shares of KO stock have gained by 10.03%. Meanwhile, during Thursday morning’s trading session, Coca-Cola stock opened modestly higher by 0.27% at $59.08 a share.
[Read More] 3 Dow Jones Stocks For Your April 2024 Watch List
Tyson Foods (TSN Stock)
Second, Tyson Foods Inc. (TSN) is one of the world’s largest food companies and a recognized leader in protein. The company produces a wide range of meat products, including chicken, beef, and pork. Currently, Tyson Foods has an annual dividend yield of 3.34%.
Late last month, Tyson Foods announced it will release its second quarter 2024 financial results on May 6, before the market opens. Following the release, management will host a conference call and webcast at 9:00 a.m. Eastern Time (8:00 a.m. Central Time) to discuss the results.
Over the past six months of trading, shares of Tyson Foods stock are up 21.78%. While, on Thursday morning TSN stock opened the trading day up 0.93%, at $58.71 a share.
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