Best Consumer Staples Stocks to Invest In
Consumer staples stocks have been on a rollercoaster throughout the COVID-19 pandemic. However, they have the necessities that consumers are looking for. And during the height of the pandemic, many people were ordering their products online. This worked out well for some companies, and today, we’ll go over my top four consumer staples stocks that are looking to benefit from the new wave of COVID-19 fears. Let’s get started…
Top Consumer Staples Stocks List for 2022
No. 4 Hormel Foods (NYSE: HRL)
Hormel Foods is over 130 years old. It’s a Fortune 500 company manufacturing brand-name food and meat products on a global scale. Hormel is a master of innovation. It currently has 52 brands under its belt. With its stellar leadership and dedication to making good food available to everyone, it’s no wonder why Hormel is one of the largest and most successful food companies in the world.
Regarding Hormel’s earnings report, its volume of 1.2 billion lbs. is up 2%. The company reported net sales of $3.0 billion, up 24%. And organic net sales are up 13%. Its operating income of $320 million is up 19% compared to 10.9% last year. And cash flow from operations of $384 million is up 87%. According to Jim Snee, chairman of the board, president and CEO, he believes the company is “on track to deliver our sales and earnings guidance for the year. Our team achieved its fifth consecutive quarter of record net sales and grew operating income by double digits during the first quarter.”
He continued by saying “We expect the demand environment to remain favorable, pricing actions to combat inflationary pressures and continued growth.” The operating environment looks to remain volatile, however, Hormel’s supply chain is on track to continue to show improvement.
Analysts believe Hormel to be a solid investment option for the long-term. However, it is up to you to do due diligence and research the company to see if it’s the right investment for you. Now, let’s look at a few more consumer staples stocks to consider for your portfolio.
No. 3 Tyson Foods (NYSE: TSN)
Tyson Food has quite the history. It started during the Great Depression in 1931. John W. Tyson started delivering chickens to large markets in the Midwest. In 1972, the company changed its name to Tyson Foods. In addition to the new name, it also introduced a new look. Tyson Foods is a staple in the food industry. The company has done so much for its community and consumers. Starting in 2000, the company became partners with Share Our Strength. So far, they’ve donated over 100 million pounds of products to hunger and disaster relief in over 49 states. And in 2014, Tyson Foods acquired The Hillshire Brands Company resulting in annual sales of over $40 billion. The company has completed 13 acquisitions.
Analysts are recommending holding this stock due to its recent stable pricing levels. The stock is looking to be a good long-term investment, considering the rise in food products due to inflation. Regarding Q1 results, the stocks GAAP earnings per share (EPS) of $3.07 is up 140% from the previous year. And adjusted EPS is up 48% from last year. GAAP operating income is up 106% from last year and adjusted operating income is also up from the previous year at a 40% increase. Donnie King, President and CEO said the company is very pleased with these results and believes “our future is bright.” And, Q2 results were just as impressive.
This consumer staples stock is adjusting and improving due to continued changes and effects of the market and global economy. Inflationary pressures are continuing across the supply chain. However, King praises the company by saying “we are working to drive costs down by continuing to increase our efficiency, productivity and bringing more capacity on line.” Tyson Foods plans to win with excellence in execution.
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Why Consumer Staples Stocks Are a Good Investment
Consumer staples stocks may be a great way to diversify your portfolio. The stocks mentioned above may be solid long-term investments for you. But this is why your independent research is so important. To enhance your portfolio, it may be beneficial to explore new investment opportunities. You can discover if the best consumer staples stocks can enhance your portfolio right now.
