3 consumer staple stocks to watch in August: TSN, DLTR, SYY

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Highlights:

  • Tyson Foods' net income in the 2nd quarter of 2022 was US$ 0.833 billion.
  • Dollar Tree's net income for Q2 surged 43.2 per cent to US$ 0.53 billion.
  • Sysco Corporation reported US$12 billion in sales for Q3 2022.

With their ability to maintain sustained growth when the market is down, consumer staple stocks could be an option for investors. However, as stock markets are volatile, the risk is always involved.

Consumer staple companies generally don't go out of demand as people are willing to spend even during financial trouble.

Here, Kalkine Media has shortlisted three consumer staple stocks. Let's look at them to find out if they are worth exploring:

Tyson foods Inc. (NYSE:TSN)

Tyson Foods deals in frozen foods, ranging from chicken, beef, and pork to other food products. The company declared a quarterly dividend of US$ 0.46 per share in May to the shareholders of its Class A common stock.

TSN stock rose by over two per cent month-to-date. It surged by over 22 per cent year-over-year (YoY).

According to Refinitiv data, TSN stock had a Relative Strength Index (RSI) of 61.11 as of August 3, 2022, which indicates a stable trend.

Tyson Foods' net income in the second quarter of fiscal 2022 was US$ 0.833 billion compared to US$ 0.477 billion in the year-ago quarter. TSN gained total sales of US$ 13.117 billion in the second quarter this year relative to US$ 11.3 billion in the same quarter in 2021.

Dollar Tree Inc. (NASDAQ:DLTR)

Dollar Tree's stock gained over 64 per cent YoY discount variety stores operator. The DLTR stock's Relative Strength Index (RSI) was 50.87 as of August 3, 2022, as per Refinitiv data.

Dollar Tree registered consolidated net sales of US$ 6.9 billion in the first quarter of fiscal 2022 versus US$ 6.48 billion in the year-ago quarter. It is a 6.5 per cent jump from the previous year.

Dollar Tree's net income for Q2 FY22 grew 43.2 per cent YoY to US$ 0.53 billion. The company runs 15 distribution centers in the US and two in Canada. DLTR launched as many as 112 new stores during the quarter and expanded 33 stores.

Sysco Corporation (NYSE:SYY)

Sysco Corporation deals in the marketing and distributing of food products, kitchen equipment, and other items.

SYY stock jumped 10.24 per cent in the last month. It grew over 17 per cent YoY. According to Refinitiv data, the Relative Strength Index of Sysco stock was 48.79 as of August 3, 2022.  

Sysco Corporation reported US$ 12 billion in sales in the third quarter of FY22, an increase of 43.6 per cent compared to the same quarter last year.

The company's gross profit soared 38.9 per cent to US$ 2.3 billion, while the gross margin fell 64 basis points to 18.9 per cent compared to the same period in 2021.

Bottom line:

Some consumer staple stocks could provide growth during an economic slowdown. However, investors must exercise caution and research before selecting any stock.


 


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