Citi Research analysts have identified their top 6 buy-rated stocks and top 5 sell-rated stocks within the consumer staples sector (XLP). All industries within this sector, including consumer staples distribution and retail, food, beverage and tobacco, and household and personal products, are rated market weight by Citi analysts.
Analyst Scott Chronert noted that the sector’s underperformance year-to-date has helped to align its valuation with its fundamental setup, leading to the sector being raised from underweight.
The top buy-rated stocks, based on expected total return (ETR), include The Simply Good Foods Co. (SMPL) with an ETR of 36%, Mondelez International Inc. (MDLZ) with an ETR of 27%, Lamb Weston Holdings Inc. (LW) with an ETR of 25%, The J M Smucker Co. (SJM) with an ETR of 24%, Dollar Tree Inc. (DLTR) with an ETR of 23%, and The Kraft Heinz Co. (KHC) with an ETR of 22%.
On the other hand, the top sell-rated stocks are Church & Dwight Co. Inc. (CHD) with an ETR of -13%, Kimberly-Clark Corp. (KMB) with an ETR of -9%, McCormick & Co Inc. (MKC) with an ETR of -8%, Campbell Soup Co. (CPB) with an ETR of -4%, and Brown-Forman Corp. (BF.B) with an ETR of 2%.
Overall, Citi Research’s analysis provides valuable insights for investors interested in the consumer staples sector.