consumer staples companies

Because these companies operate in a stable sector and sell products that are always in demand, the biggest consumer staples companies have been around for ages, sometimes a century or more. The S&P 500® Consumer Staples comprises those companies included in the S&P 500 that are classified as members of the GICS® consumer staples sector. The Procter & Gamble Company(NYSE:PG): The consumer staples sector, which is often seen as a stable stalwart in times of volatility, has been able to stay afloat relatively well amid the pandemic. For this reason, consumer staples stocks are often popular with retirees and other investors seeking income and security. The sector is composed of companies whose primary lines of business … Accessed March, 2021. Find information about the Consumer Staples sector and industry performance in the U.S. Track the Consumer Staples performance of the stock sector against the Broad Global Market US Index. The consumer staples sector is among our top picks for dividend-growth investing but it pays to be choosy, here are three picks with value, growth, and yield. The Consumer Staples sector consists of companies that provide goods and services that people use on a daily basis, like food, clothing, or other personal products. We also reference original research from other reputable publishers where appropriate. The world's largest brewer could still be too big for its own good. How the Utilities Sector is Used by Investors for Dividends and Safety, How Determining the Dividend Rate Pays off for Investors, Top Penny Stocks Using Technical Analysis, Consumer Staples Stocks with the Most Momentum, Graham Holdings Company Reports 2020 and Fourth Quarter Earnings, Chegg Reports 2020 Financial Results and Raises 2021 Guidance, Boston Beer Reports Fourth Quarter 2020 Results, NU SKIN ENTERPRISES ANNOUNCES CEO TRANSITION PLAN, Consumer Staples Select Sector SPDR ETF (. The offers that appear in this table are from partnerships from which Investopedia receives compensation. If commodity prices jump, the companies in question simply raise their prices… and folks keep buying. You can learn more about the standards we follow in producing accurate, unbiased content in our. Chegg Inc. "Chegg Reports 2020 Financial Results and Raises 2021 Guidance." These companies have typically performed well for investors, but they come with risks, too. Though they may not deliver the fastest earnings growth on the market, their ability to withstand recessions, increase their dividends, and put up consistent growth makes them excellent choices for investors looking for reliable, income-producing stocks that will help them sleep easy at night. With so much unpredictability and uncertainty in both the economy and the stock market these days, investors looking to play defense with their portfolios can always count on high-quality consumer staples stocks.Unlike cyclical stocks, consumer staples companies produce household goods, food, beverages and other products that are … Consumer discretionary goods are best defined as wants rather than needs. Consumer staples companies include manufacturers and distributors of food, beverage and tobacco products, drug retailers, consumer super centers and producers of non-durable goods and personal products. But these stocks make up for that modest growth with safety, reliable profits, dividends, and defensive positioning. As a result, these companies are viewed as non-cyclical and able to maintain stable growth regardless of the state of the economy. In this way, the consumer staples sector behaves much differently from consumer discretionary businesses like restaurants, hotels, and apparel. Fast-moving consumer goods are cheaper products that sell quickly such as milk, gum, fruit and vegetables, soda, beer, and common drugs like aspirin. Apr 16, 2021, Demitri Kalogeropoulos | The Fidelity MSCI Consumer Staples Index ETF (FSTA) invests more than 80% of its assets in securities in the MSCI USA IMI Consumer Staples Index, an index that tracks noteworthy stocks such as Procter & Gamble, Coca-Cola, PepsiCo, and Walmart. is comprised of companies that produce and sell items considered essential for everyday use. Accessed March 24, 2021. There are many types of agriculture businesses that provide an array of investing opportunities. With those kinds of goods and services, consumers tend to increase their spending and consumption in good economic times and pull back during a recession. Nu Skin Enterprises Inc. "NU SKIN ENTERPRISES ANNOUNCES CEO TRANSITION PLAN." Coca-Cola Co. (NYSE: KO) Earnings: Over the past four consecutive quarters, Coca-Cola has beat … For instance, a number of consumer staples stocks have thrived during the pandemic as consumers stock up on essentials and avoid spending on things like travel and restaurant meals. Those include the following: Because consumer staples products tend to be timeless and the industry sees relatively little innovation, these companies are likely to endure for generations to come. Investopedia requires writers to use primary sources to support their work. It is an industry worth more than $3 trillion in 2019, according to Statista. What Are Consumer Staples Stocks? These three growth stocks are hitting different markets and are all down from their recent highs. Graham Holdings Co. "Graham Holdings Company Reports 2020 and Fourth Quarter Earnings." In addition, they own popular consumer staples stocks like Walmart (NYSE:WMT) and Coca-Cola as well as stocks like the following: I've given you some of my favorites, but you can find great consumer staples stocks, too. Here are the top 3 consumer staples stocks with the best value, the fastest growth, and the most momentum. Consumer staples stocks are the worst of 2021, but PepsiCo could double in 10 years, trader says Published Fri, Feb 12 2021 6:52 AM EST Lizzy Gurdus @lizzygurdus Consumer staples companies may not have the highest earnings growth or year-over-year revenue growth, because as market leaders, they are already large, mature companies. Consumer staples are noncyclical, meaning they offer investors safety during recessionary climates. Consumer staples companies are those that either produce or sell products that people buy on a regular basis. Apr 16, 2021, Copyright, Trademark and Patent Information. These include white papers, government data, original reporting, and interviews with industry experts. They are products or services that consumers will purchase if they have sufficient income. Open an Account All Consumer Staples investments from Fidelity The utilities sector is a category of stocks for companies that provide basic services including natural gas, electricity, water, and power. That's why I sometimes even pay … CPB stock is another name from consumer staples that is likely to deliver handsome returns in the coming quarters. But … Boston Beer Co. Inc. "Boston Beer Reports Fourth Quarter 2020 Results." Warren Buffett is known for keeping a large portion of his investing dollars in the consumer staples sector.. Accessed March 24, 2021. China's Consumer Staples sector is largely domestically-focused, which is evident by its high domestic revenue exposure (roughly 98%). Apr 17, 2021, Jose Najarro | Consumer staples products include household goods, food, beverages, hygiene products, and other items that individuals are either unwilling or unable to eliminate from their budgets even in times of financial trouble. These are the consumer staples stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. While we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy. The packaged food industry within the consumer staples sector is an excellent example of this. Both sales and earnings are critical factors in the success of a company. Since these companies sell products like food and cleaning products that consumers rely on regardless of the state of the economy, they tend to generate solid profits even in a weak economy. In order to evaluate consumer staples companies and choose the best stocks, it’s important to understand some key industry metrics. The owner of the Truly hard seltzer brand is expected to announce more market-thumping growth on Thursday. He received his bachelor's degree in interdisciplinary studies from St. Stephen's University and his master's degree in economics at The New School for Social Research. Procter & Gamble (PG), Philip Morris (PM), Estée Lauder (EL), Monster Beverage (MNST) and Constellation Brands (STZ) have all delivered impressive results over the past year. Unlike consumer staples, these companies tend to follow broader economic trends during times of expansion and recession. Consumer staples stocks, as represented by the benchmark Consumer Staples Select Sector SPDR ETF (XLP), have underperformed the broader market over the past year. Apr 16, 2021, Motley Fool Transcribing | Consumables are goods, such as food and household items, used by individuals and businesses that use up or wear out and require regular replacement. Consumer staples are companies that produce items we consume every day such as food, beverages, and non-durable household and personal products. Companies that sell consumer packaged goods (CPGs) are traditionally high-margin, high-volume businesses. The beverage and snack giant is still expecting another year of around 5% sales growth. These are the top consumer staples stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly year-over-year (YOY) percentage revenue growth and their most recent quarterly YOY earnings per share (EPS) growth. Its … If these companies stay on their current courses, they'll have plenty of room to make big boosts in their payouts to shareholders. Below is a quick view of … Estee Lauder. They’re the kinds of goods you buy and stock your house with regardless of the greater state of the economy, and the amount you buy or spend on them is relatively fixed. QQQ 342.01 (+0.12%) AAPL 133.91 (-0.44%) Companies with quarterly EPS or revenue growth of over 2,500% were excluded as outliers. Matthew Johnston has more than 5 years writing content for Investopedia. "Financial Data." Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. The chart below presents three different ETFs in the industry, Consumer Staples Select SPDR Fund (NYSEMKT:XLP), Vanguard Consumer Staples ETF (NYSEMKT:VDC) and iShares U.S. Consumer Goods ETF (NYSEMKT:IYK). S&P 500 Consumer Staples Index quotes and charts, consumer staples stocks, new highs & lows, and number of stocks above their moving averages. Consumer staples stocks function noncyclically, meaning they offer investors safety during recessionary climates. Whether you think about it or not, you probably rely on consumer staples companies every day. But Procter & Gamble said it thinks the bump is … Some of the big names in the sector include Procter & Gamble Co. (PG), Coca-Cola Co. (KO), and General Mills Inc. (GIS). Consumer Staples sector, as represented by XLP, an exchange-traded fund [ETF] that holds basket of Consumer Staples stocks (e.g, Proctor & Gamble, Pepsi) is up by 2.91% and is currently underperforming the overall market by -8.37% year-to-date. Apr 16, 2021, Leo Sun | Many of them offer better dividend yields than the S&P 500, which pays a 1.6% yield as of December 2020. These market performance numbers and all statistics in the tables below are as of March 23, 2021. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated. 3 Best Consumer Staples Stocks to Buy Now | The Motley Fool Demitri Kalogeropoulos | For investors who prefer to get exposure to the whole sector rather than pick individual stocks, buying an exchange-traded fund in the sector is the most sensible option. Highlights from management's call with Wall Street analysts. Accessed March 24, 2021. The Consumer Staples sector has some high-quality stocks, but these seem to be trading at a premium valuation most of the time. He teaches macroeconomics at St. Stephen's University. Market data powered by FactSet and Web Financial Group. Therefore ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general. The consumer staples sector is a favorite among some of the biggest players in the investing community. YCharts. So Barron’s screened for North American consumer-staples companies worth $5 billion or more that analysts expect will be able to notch increases in organic growth of … The consumer staples sector is characterized by its global industry classification sector (GICS). Some of them are Dividend Aristocrats -- stocks that have increased their dividend payout every year for at least 25 years. Morningstar recommends these consumer staples stocks. No matter what happens in the market, folks buy the basics. Unlike cyclical stocks, consumer staples companies produce household goods, food, beverages and other products that are always in demand, even during an economic downturn. He is an expert on company news, market news, political news, trading news, investing, and the economy. Consumer staples companies may not have the highest earnings growth or year-over-year revenue growth, because as market leaders, they are already large, mature companies. They are also generally defensive, dividend-paying stocks, meaning they tend to outperform in down markets. First of all, consumer staples stocks are very recession-resistant by definition. That’s a sign of their brand power, as well as their ability to endure a wide range of challenges and economic cycles, and it adds to their attractiveness as defensive stocks with healthy dividends. RAD earnings call for the period ending March 31, 2021. At a price-earnings-ratio of 16.9x, CPB stock is … Apr 16, 2021, Ryan Downie | There are 73 companies in the Consumer Staples sector listed on the Australian Stock Exchange (ASX) The consumer staples sector is made up of three industry groups: Food, Beverage & Tobacco industry contains packaged foods, agricultural products, brewers, distillers, soft drinks and tobacco companies. They produce goods primarily in the consumer staples … Consumer staples are daily life essentials like food and beverages, cleaning and personal hygiene products, household products like paper goods, and alcohol, tobacco, and cosmetics. XLP has provided investors with a total return of 41.6% over the past 12 months, well below the Russell 1000's total return of 83.1%. Consumer staples companies make and sell the basics. Other consumer staples companies, from food manufacturers to big-box retailers, are reporting similar surges in orders and customer traffic. Apr 18, 2021, Demitri Kalogeropoulos | The first two of these ETFs have Costco, Procter & Gamble, and PepsiCo as their top three holdings, while the last one includes both consumer staples and discretionary stocks. Accessed March 24, 2021. Find the Latest News, Headlines, Blogs and Watch Video about Consumer Staples, and Retail from CNBC.com. Investors are expecting to hear mostly good news from P&G in a few days. The brands best known to U.S. investors include Nestle, Nescafe, Gerber Baby Products, Butternut, Crunch, KitKat, Carnation and Dreyer's. Each of … Companies in the consumer discretionary sector sell goods and services that are considered non-essential, such as appliances, cars, and entertainment. Altria Group (MO) Expected Annual Returns: 15.6% Altria is primarily a tobacco manufacturer. While they are not considered staples, retail companies are intertwined with the consumer staples sector. The views and strategies described in our content may not be suitable for all investors. Consumer staples companies make products or deliver services that are considered to be ‘staples’ – in other words, consumers can’t do without them. Motor vehicle sales represent the number of domestically produced units of cars, SUVs, minivans, and light trucks that are sold. These are the consumer staples stocks that had the highest total return over the last 12 months. The consumer staples sector is composed of companies that produce and sell items considered essential for everyday use. Just as you’re already familiar with many consumer staples products, you likely know many of the top stocks in the sector, such as Costco Wholesale (NASDAQ:COST), Procter & Gamble (NYSE:PG), and Pepsico (NYSE:PEP), which we discuss below. If you don’t think vanity is a powerful force, tell customers of cosmetics giant Estee … ... companies in the consumer staples … Here's what the consumer staples giant's double-digit payout hike means. The Main Street Lending Program was an initiative by the Federal Reserve System to keep credit flowing to small- and mid-sized businesses and nonprofits during the COVID-19 crisis. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the posting and may change without notice. The comments, opinions, and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or to adopt any investment strategy. For example… shampoo, toothpaste, toilet paper, soft drinks, cigarettes and mouthwash. The dividend is the percentage of a security's price paid out as dividend income to investors.

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