3 US consumer stocks to watch as Christmas nears

By - Mridul Gogoi


  • Proctor & Gamble paid US$ 2.3 billion in dividend payout in Q1 2023.
  • PepsiCo Inc. posted a net income of US$ 8,443 million in Q3 2022.
  • Philip Morris International paid a quarterly dividend of US$ 1.27 per share.

Consumer stocks are those companies that produce consumer staples and are used in the everyday lives by the people. The consumer sector is an all-important part of the stock market, as its movement impacts market participants.

Some of the mega-cap companies in the US are from the consumer sector. Some of the key players in this sector include- Procter & Gamble Company (NYSE: PG), PepsiCo Inc. (NASDAQ: PEP), and Philip Morris International Inc (NYSE: PM).

Here, we’ll look at these companies and their performances in recent quarters:

Procter & Gamble Company (NYSE: PG)

Procter & Gamble is one of the world's largest consumer products, producing a range of products extensively used by people. Founded in 1837, Procter & Gamble has come a long way to generate more than US$ 80 billion in annual sales.

In its first quarter of fiscal 2023 results, Procter & Gamble reported net sales of US$ 20.6 billion, which was a one per cent change from US$ 20.3 billion in the same period in the previous year.

The diluted EPS of the company in the reported quarter was US$ 1.57 compared to US$ 1.61 in the year-ago quarter.

The consumer products behemoth returned close to US$ 6.3 billion in cash to shareholders in the first quarter of fiscal 2023, which was US$ 2.3 billion in the form of dividend payouts and US$ 4 billion in the form of stock repurchases. The company’s operating cash flow in the quarter was US$ 4.07 billion.

PepsiCo Inc. (NASDAQ: PEP)

The market leader in snacks and beverages, PepsiCo manufactures a range of products consumed daily across the world. The second-largest beverage provider in the world, PepsiCo, has a dividend yield of 2.538 per cent. It paid a quarterly dividend of US$ 1.15 apiece.

In the third quarter of 2022, PepsiCo posted a net income of US$ 2,724 million compared to US$ 2,243 million in the same quarter a year ago. The total current assets at the end of Q3 2022 were US$ 23,543 million. The net revenue in Q3 2022 was US$ 21,971 million compared to US$ 20,189 million in Q3 2021.

The EPS of the popular beverage and snacks company is 6.99, with a P/E ratio of 25.90.    

Philip Morris International Inc (NYSE: PM)

Tobacco company Philip Morris International is a global firm selling cigarettes and reduced-risk products. It sells vaping products outside the US. With a dividend yield of 5.034 per cent, it paid a quarterly dividend of US$ 1.27 per share. It has an EPS of 5.62 while the P/E ratio is 17.90.

The tobacco giant reported a Q3 2022 diluted EPS of US$ 1.34 and an adjusted diluted EPS of US$ 1.53.

The company’s net revenue in the third quarter of fiscal 2022 was US$ 8,032 million. For the nine months that ended September 30, 2022, Philip Morris reported net revenues of US$ 23,610 million compared to US$ 23,301 million.

The PM stock gained more than 6.23 per cent YTD while rising over 21.57 per cent in the running quarter.

Bottom line:

Even if certain stocks perform well, it does not guarantee future performance, especially when there are so many uncertainties in the market. Major companies and stocks have plunged this year due to volatility in the market. So, as an investor, always do your analysis well because the market is bearish at the moment.