Top consumer staples stocks to explore in July: HSY, PM, KO, LW & TAP

Be the First to Comment Read

Top consumer staples stocks to explore in July: HSY, PM, KO, LW & TAP

 Top consumer staples stocks to explore in July: HSY, PM, KO, LW & TAP
Image source: © Xiuxiu84 | Megapixl.com

Highlights:

  • Molson Coors Beverage Company (NYSE: TAP) sales jumped over 16% YoY in Q1, FY22.
  • The Hershey Company (NYSE: HSY) expects its net sales growth to be between 10% and 12% in fiscal 2022.
  • Coca-Cola Company (NYSE: KO) will report its second-quarter fiscal 2022 financial results on July 26.

The consumer staples sector is comprised of firms that specialize in producing and selling items or products for everyday use. The products include household items, food, beverages, personal hygiene items, and other related products.

The demand for these products is generally less likely to decrease even during a financial turmoil. Hence, these companies are considered non-cyclical and tend to maintain a steady momentum even during an economic downturn.

People rely on the consumer staples sector for their everyday needs. The amount of the product a consumer buys also tends to remain fixed regardless of the health of the economy.

Now, given the uncertainties in the market due to elevated inflation and Fed's aggressive stance to curb it, the investors are exploring opportunities in the consumer staples sector. The sector has gained traction as many investors anticipate that the interest rate hikes by the central bank might tip the economy into a recession.

Here we explore some of the top S&P 500 consumer staples stocks to explore in the third quarter.

Molson Coors Beverage Company (NYSE: TAP)

Molson Coors is a multinational drink and brewing firm based in Chicago, Illinois. The beverages brewing firm has operations in various markets, globally.

The shares of the company traded at US$56.395 at 12:59 pm ET on June 28, up 4.82% from their closing price of June 27. Its stock value increased by 16.96% YTD.

The firm has a market cap of US$12.24 billion, a P/E ratio of 11.43, and a forward one-year P/E ratio of 13.85. Its current yield is 2.73%, and its annualized dividend is US$1.52.

The 52-week highest and lowest stock prices were US$57.45 and US$42.46, respectively. Its trading volume was 1,198,897 on June 27.

The company reported net sales of US$2.21 billion in Q1, FY22, representing an increase of 16.7% YoY. Its GAAP net income was US$151.5 million, or US$0.70 per diluted share, as compared to US$84.1 million, or US$0.39 per diluted share in Q1, FY21.

Top consumer staples stocks to explore with highest YTD returnSource: Pixabay

Lamb Weston Holdings, Inc. (NYSE: LW)

Lamb Weston Holdings is a food processing firm that specializes in the production and processing of frozen French fries, waffle fries, and other related potato products. It is based in Eagle, Idaho.

The stock of the company traded at US$72.54 at 1:05 pm ET on June 28, down by 0.18% from its previous closing price. The LW stock rose 13.69% YTD.

The market cap of the company is US$10.52 billion, the P/E ratio is 45.81, and the forward one-year P/E ratio is 37.65. Its current yield is 1.36%, and its annualized dividend is US$0.98.

The stock touched a peak price of US$81.42 and the lowest price of US$49.71 in the last 52 weeks. Its share volume on June 27 was 1,160,161.

The company will report its fourth quarter and fiscal 2022 financial results on July 27, before the opening bell.

Meanwhile, in the third quarter of fiscal 2022, its net sales rose 7% YoY to US$955 million, while its net income rose 61% YoY to US$107 million.

The Hershey Company (NYSE: HSY)

The Hershey Company is a chocolate company based in Derry Township, Pennsylvania. The leading chocolate manufacturer also specializes in baked products like cookies, cakes, etc.

The shares of the company traded at US$219.79 at 1:10 pm ET on June 28, down 0.53% from their closing price of June 27. Its stock value soared 14.36% YTD.

The firm has a market cap of US$45.36 billion, a P/E ratio of 28.36, and a forward one-year P/E ratio of 27.52. Its current yield is 1.63%, and its annualized dividend is US$3.604.

The 52-week highest and lowest stock prices were US$231.59 and US$167.80, respectively. Its trading volume was 1,050,275 on June 27.

The company's consolidated net sales were US$2.66 billion in Q1, FY22, up 16.1% YoY. It reported a net income of US$523.47 million, as compared to US$400.56 million in Q1, FY21.

The firm expects its net sales growth to be between 10% and 12% in fiscal 2022.

Philip Morris International Inc (NYSE: PM)

Phillip Morris International is one of the leading tobacco companies that has its business in several international markets. It is based in New York.

The stock of the company traded at US$101.91 at 1:49 pm ET on June 28, down 0.78% from its previous closing price. The PM stock surged 7.29% YTD.

The market cap of the company is US$158.49 billion, the P/E ratio is 17.69, and the forward one-year P/E ratio is 18.57. Its current yield is 4.84%, and its annualized dividend is US$5.00.

The stock touched a peak price of US$112.48 and hit the lowest price of US$85.64 in the last 52 weeks. Its share volume on June 27 was 5,446,829.

The company's net revenue increased by 2.1% YoY to US$7.74 billion in Q1, FY22. Its net earnings came in at US$2.46 billion, versus US$2.59 billion in the year-ago quarter.

Top consumer-staples stocks: TAP, LW, HSY, PM, KO

Coca-Cola Company (NYSE: KO)

Coca-Cola is one of the leading beverage companies that owns or licenses a range of beverage brands. The company is based in Atlanta, Georgia.

The shares of the company traded at US$62.60 at 1:56 pm ET on June 28, down 0.49% from their closing price of June 27. Its stock value jumped 6.09% YTD.

The firm has a market cap of US$271.54 billion, a P/E ratio of 26.32, and a forward one-year P/E ratio of 25.47. Its current yield is 2.79%, and its annualized dividend is US$1.76.

The 52-week highest and lowest stock prices were US$67.20 and US$52.28, respectively. Its trading volume was 12,142,110 on June 27.

The company will report its second-quarter fiscal 2022 financial results on July 26, before the market opens.

Meanwhile, in the first quarter of fiscal 2022, its net revenue rose 16% YoY to US$10.5 billion, while its earnings per share rose 23% to US$0.64.

Bottom line:

The consumer staples sector was no exception amid a slump in the broader market this year due to various macroeconomic factors and other global uncertainties. The S&P 500 consumer staples sector declined 5.93% YTD while increasing 5.24% over the past 12 months. Hence, investors should exercise due diligence and closely evaluate the companies before spending on the stocks.

Disclaimer

Speak your Mind

Featured Articles