5 Top Consumer Staples Stocks To Watch Right Now

Should Investors Be Buying These Consumer Staples Stocks In May 2022?

As inflation continues to weigh on consumers, fears of a possible recession arise. On top of that, with the ongoing volatility in the stock market, investors may be looking to take the safer route in terms of their investments. As such, more resilient and stable sectors of the stock market such as consumer staples stocks could be worth watching right now. Consumer staples consist of essential products used by consumers. This would include the likes of foods and beverages, household goods, and hygiene products. Despite the high inflation forcing consumers to reduce spending, these essential goods will always have their place in the shopping carts of consumers. Hence, demand will always be there for consumer staples regardless of how the economy is performing. 

A solid consumer staples pick right now could be Procter & Gamble (NYSE: PG). The company recently reported its quarterly financials with strong sales across the board. On top of that, it also raised its top-line growth outlook for the year. Elsewhere, The Clorox Company (NYSE: CLX) also reported quarterly performance that beat estimates on earnings and revenue. “We saw continued strong demand for our products this quarter and delivered sequential gross margin improvement against the backdrop of a volatile and challenging environment,” said CEO Linda Rendle. With that being said, here are five consumer staples stocks to watch in the stock market today.

Consumer Staples Stocks To Buy [Or Sell] In May 2022 

Estee Lauder 

Starting off our list today is Estee Lauder (EL). It is a multinational manufacturer and marketer of prestige skincare, makeup, fragrance, and hair care products. The company is a leader in global prestige beauty, a dynamic and vibrant industry that is benefitting from favorable demographic trends. EL boasts a portfolio of famous brands such as Clinique, Aveda, Bobby Brown, and Jo Malone among many others.

Yesterday, EL reported its third-quarter financials for fiscal year 2022. Diving into revenue, the company brought in net sales of $4.25 billion for the quarter, a 10% boost in revenue over the year before. Besides that, its organic net sales grew by 9% as well. Next to that, net earnings for the quarter came in at $558 million, a rise of 22% from $456 million in 2021. With that, earnings per share were $1.90, up by 17% year-over-year and beating Wall Street estimates of $1.67. And on that note, will you be buying EL stock? 

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Archer-Daniels-Midland Company

Archer-Daniels-Midland, commonly known as ADM, is an agricultural origination and processing company. Its primary focus is on sustainable human and animal nutrition. The company doesn’t own farms. Instead, it works with growers, supporting them with services and innovative technologies. It takes natural products and turns them into staple foods, sustainable, renewable, and industrial products. Over the past year, ADM stock has grown roughly 40%. 

Last week, the company reported its financials for the first quarter of the year. Starting with revenue, ADM reported a revenue of $23.65 billion for the quarter. This marks a cool 25% climb in revenue over last year’s $18.9 billion. Moving on to profits, the company raked in a net income of $1.05 billion, a large increase of 53% from the $689 million last year. Given the strong earnings this quarter, should you invest in ADM stock?

Coca-Cola

Coca-Cola is a beverage company that sells its products in more than 200 countries and territories. Its multiple billion-dollar brands are spread across several beverage categories worldwide. Namely, these include soft drink brands such as Coca-Cola, Sprite, and Fanta to name a few. Besides soft drinks, the company also offers sports, coffee, and tea brands. For a sense of scale, the company has more than 700,000 employees across the globe. 

On April 25, the company announced its first-quarter financials. Coca-Cola reported a net revenue of $10.49 billion, representing an increase of 16% from $9.02 billion the year before. As for its profits, the company brought in $2.78 billion. This represents a rise of 24% from $2.25 billion last year. Besides that, earnings per share improved to $0.64, up 23% compared to the prior year’s quarter. All in all, the company was able to surpass analysts’ estimates for the quarter largely thanks to inflation-fueled price increases. As such, should you keep tabs on KO stock?

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PepsiCo

Another notable consumer staple stock would be PepsiCo. By and large, most of us would be familiar with the global food company’s offerings. This ranges from its famous beverage lines such as Pepsi-Cola and Gatorade to food brands like Frito-Lay and Quaker. In fact, the company estimates that its products are consumed over a billion times a day across more than 200 countries worldwide. Considering the impressive market reach of PepsiCo, I can see why investors may be eyeing PEP stock. 

Last Tuesday, the company reported its first-quarter 2022 results. Diving in, net revenue grew by 9.3% year-over-year to $16.2 billion. Along with that, PepsiCo’s organic revenue grew by 13.7% during the quarter. When it comes to profit, the company brought in a net income of $4.26 billion, a massive rise from $1.71 billion in 2021. For the year, PepsiCo expects to deliver 8% in organic revenue growth, a bump from its previous guidance of 6%. All things considered, are you keen on PEP stock?

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Kimberly-Clark 

Last, but not least, we have Kimberly-Clark, a multinational personal care company. For the most part, it produces mostly paper-based consumer products. This would include the likes of sanitary paper products and surgical and medical instruments. Kimberly-Clark boasts a portfolio of famous household brands such as Kleenex, Kotex, Scott, and Huggies to name a few. And for a sense of scale, the company has over 40,000 employees.

On April 22, the company reported its financials for the first quarter of 2022. Diving in, the personal care company brought in net sales of $5.1 billion, up by 7% from the year-ago period. As for profits, Kimberly-Clark reported earnings of $1.55 per share for the first quarter. For 2022, it is expecting net sales to increase by 2% to 4%. Adjusted earnings per share are forecasted to range between $5.60 and $6. Given the earnings report, should you give KMB stock a go?

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