Consumer staples stocks are supposed to be bastions of stability, regardless of economic conditions. But over the past year, as Standard & Poor’s 500-stock index rose 16.5%, staples stocks within the index surrendered 6.3%.
Guide to Scoring the Best Deals in 2018
- Disrupter Deal: The Instant Pot
- Get the Real Deal for Less
- Best Bets for Grocery Delivery
- Top Tech Bargains for 2018
- Refurbished and Open-Box Deals
- Disrupter Deal: No-Strings Streaming
- Free Trades on Low-Cost Funds
- Skip the Sales Tax
- Disrupter Deal: Trade Stocks Commission-Free
- Best Deals for Low-Cost Cloud Storage
- Hot Savings on Flights to Hawaii
- Get a Free Hotel Room
- Rent an RV for a Dollar a Day
- Disrupter Deal: Two-in-One Trips
Like many dividend-paying stocks, staples stocks tend to sag when interest rates rise and bond yields become more attractive. Staples are also getting pressure from online retailers that offer substitutes for longtime brand favorites. And growing consumer preference for cheaper, fresher food has challenged packaged-food producers. Contrarian investors might find the values tempting. These are among the better-positioned companies within the sector:
McCormick & Co. (MKC, $106, yield 2.0%) claims roughly 20% of global sales of spices and seasonings. Analysts at Credit Suisse say McCormick’s ability to raise prices without compromising demand is unparalleled. They rate the stock among the firm’s top U.S. investing ideas. Shares of snack giant Mondelez International (MDLZ, $41, 2.2%) have flagged as grocery customers flock to the fresh-food aisles. Analysts at investment research firm CFRA expect a new CEO to implement aggressive strategies to boost sales; the firm rates the stock a “buy.” Pharmacy chain Walgreens Boots Alliance (WBA, $66, 2.4%) acquired Rite Aid in March, adding 1,932 stores plus more clout to negotiate lower prices for the drugs it buys. A projected $300 million in annual cost savings by 2020 as a result of the merger is achievable, according to CFRA, which recommends the stock. Walgreens is replacing General Electric in the Dow Jones industrial average.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
-
Stock Market Today: Dow Dives 1,123 Points After FedMarket participants reacted predictably to a well-telegraphed hawkish turn by the Federal Reserve.
-
Fed Sees Fewer Rate Cuts in 2025: What the Experts Are SayingFederal Reserve The Federal Reserve cut interest rates as expected, but the future path of borrowing costs became more opaque.
-
Why Is Warren Buffett Selling So Much Stock?Berkshire Hathaway is dumping equities, hoarding cash and making market participants nervous.
-
If You'd Put $1,000 Into Google Stock 20 Years Ago, Here's What You'd Have TodayGoogle parent Alphabet has been a market-beating machine for ages.
-
Stock Market Today: Stocks Retreat Ahead of Nvidia EarningsMarkets lost ground on light volume Wednesday as traders keyed on AI bellwether Nvidia earnings after the close.
-
Stock Market Today: Stocks Edge Higher With Nvidia Earnings in FocusNvidia stock gained ground ahead of tomorrow's after-the-close earnings event, while Super Micro Computer got hit by a short seller report.
-
Stock Market Today: Dow Hits New Record Closing HighThe Nasdaq Composite and S&P 500 finished in the red as semiconductor stocks struggled.
-
Stock Market Today: Stocks Pop After Powell's Jackson Hole SpeechFed Chair Powell's Jackson Hole speech struck a dovish tone which sent stocks soaring Friday.
-
Stock Market Today: Stocks Drop Ahead of Powell's Jackson Hole SpeechSentiment turned cautious ahead of Fed Chair Powell's highly anticipated speech Friday at the Jackson Hole Economic Symposium.
-
Stock Market Today: Stocks Rise After Jobs Data Lifts Rate-Cut OddsPreliminary data from the Bureau of Labor Statistics shows job growth was lower than previously estimated.
