Consumer staples stocks have traditionally been viewed as safe investments during recessions due to their stability. However, in today’s environment of strong economic growth and high inflation, some staples providers are able to raise prices faster than their costs, making their stocks attractive to conservative, value, and growth-at-a-reasonable-price investors. These well-established companies are unlikely to go bankrupt, making them low-risk investments with growth potential.
During times when the market wrongly predicts a recession, some consumer staples stocks become overpriced. Yet, there are still undervalued options in this sector. Here are three consumer staples stocks worth considering:
1. Mondolez (MDLZ)
Snack maker Mondolez had a successful year in 2023 with significant revenue and earnings growth. The company’s presence in key markets and plans for expansion make it a strong investment option. With an attractive enterprise value EBITDA ratio, Mondolez is one of the best consumer staples stocks to buy now.
2. Costco (COST)
Costco, known for attracting affluent customers, recently diversified its offerings by selling precious metals. The company’s strong sales performance and positive outlook make it a favored pick among analysts. With expected earnings growth, Costco is a top consumer staples stock to consider.
3. Molson Coors (TAP)
As a leading beer maker, Molson Coors has benefited from consumer demand, price increases, and market share gains. The company’s impressive sales and profit growth, along with a low forward price-earnings ratio, make it an attractive investment choice.
In conclusion, these three consumer staples stocks offer investors the opportunity to own resilient and potentially rewarding assets in today’s market climate.