Consumer Staples stocks represent firms that manufacture or sell items or services constantly in demand. Inflation and ongoing interest-rate increases this year have affected practically every industry. The Consumer Staples sector, however, is outperforming the rest of the market since these businesses have a high demand for their goods even amid economic downturns. Investors prefer these equities to those in other hazardous industries since they can hedge against inflation well.
Due to increasing consumer spending, mainly through internet channels, consumer staples firms benefited greatly throughout the pandemic. And, as more individuals have access to various online platforms thanks to the change in how businesses are managed, the industry has grown even more. The consumer staples sector has earned a 14% annualized return in a three-year period, compared to 11% in the energy sector and 13.2% in industrials. Consumer staples have robust balance sheets, steady profitability, and constant cash flows, which are crucial. It’s no wonder investors favor them.
Let’s break down three stocks I picked from the Consumer Staples sector, each of which shows an excellent financial track record, a history of paying dividends, healthy growth, and optimistic forecasts. The experts are with me in recommending these timely tickers:
Target Corp (TGT)
Target Corp (TGT) is a general goods store in the United States. Food assortments such as perishables, dairy, dry goods, and frozen items are available, as well as fashion, accessories, home décor products, electronics, toys, seasonal offerings, food, and other commodities. TGT’s in-store facilities include Target Café, Target Optical, Starbucks, and other food service options. TGT offers its items through its shops and digital platforms such as Target.com. The firm had over 2,000 shops as of March 2022. TGT was founded in 1902 and is based in Minneapolis, Minnesota.
TGT has the faith of 46 hedge funds that collectively own $1.2 billion in shares. Despite TGT’s having mixed quarterly earnings results this year, a quarterly EPS growth margin of 452.59% is forecasted. With TGT’s stock down by about 29% year-to-date, we have a decent opportunity to bring “buying the dip” to fruition. Since its IPO, TGT has paid stockholders recurring dividends and has a 51-year dividend increase history. TGT has increased dividends at a CAGR (Compound Annual Growth Rate) of 14.96% over the last five years, making it one of the top dividend stocks. TGT has a dividend yield of 2.64%, with a quarterly payout of $1.08 per share. According to analysts who provide yearly price estimates, TGT has a consensus median price target of 190.00, with a high of 244.00 and a low of 161.00. This reveals a 15.61% increase over current pricing, and the consensus is also confident in TGT’s buy rating.
Mondelez International Inc (MDLZ)
Mondelez International, Inc. (MDLZ) is a worldwide confectionery, food, beverage, and snack food corporation headquartered in Chicago. Mondelez is present in almost 160 countries. MDLZ was rated 108th on the 2021 Fortune 500 list of the top firms in the U.S. by total revenue. The current iteration of the firm (MDLZ) was formed in 2012 when Kraft Foods was rebranded Mondelez and kept its snack food division while spinning off its grocery business. The name is derived from the Latin terms mundus and delez, a witty spin on the word “delicious.” MDLZ also acts as a chocolate, cookie, biscuit, gum, and powdered beverage manufacturer. MDLZ’s portfolio contains multiple items worth billions.
MDLZ has had no problem living up to its reputation, showing great resilience during the pandemic and managing to come out of it a stronger business that has continued growing. For MDLZ’s Q3 earnings report, it reported $7.76 billion in sales (beating projections by 4.40%) with an EPS of 74 cents per share (winning by a margin of 7.75%). MDLZ shows forecasted revenue and earnings of $8.2 billion and 70 cents per share, respectively. MDLZ‘s operational cash flow year-to-date was $2.5 billion, generating more than $1.9 billion in free cash flow. Its cash creation was significant, as MDLZ paid $800 million in dividends to stockholders during the third quarter of 2022. MDLZ has a dividend yield of 2.37%, with a quarterly payout of 39 cents per share. With a recently recorded market cap of $87.93 billion, MDLZ has been given a consensus median price target of 70.00, with a high of 76.00 and a low of 65.80. This is a 7.76% increase from its last price; it’s safe to say that MDLZ has earned its buy rating.
Walmart Inc (WMT)
Walmart Inc. (WMT) is a global retail company that runs a chain of U.S. supermarkets, cheap department stores, and grocery shops. Sam Walton established WMT in Rogers, Arkansas, in 1962, and it was officially registered under Delaware General Corporation Law on October 31, 1969. Additionally, WMT owns and runs retail warehouses for Sam’s Club. WMT has over 10,500 locations, operating in 24 countries under 46 distinct names. In the U.S. and Canada, WMT is known as Walmart (of course). In contrast, in Mexico and Central America, WMT is known as “Walmart de México y Centroamérica,” and in India, as “Flipkart Wholesale.” It operates in South Africa, Canada, Chile, and many other countries. WMT’s headquarters are in Bentonville, Arkansas.
It’s no surprise that WMT has the stockholder support of 67 different hedge funds; the collective total of owned shares amounts to a value of $3.78 billion. Another example of WMT’s intimidating size as a business: Its reported revenue for the fiscal year 2021 was $572.8 billion, of which $13.7 billion was profit (with a net profit margin of 2.39%). For the current quarter, WMT shows forecasted sales of $147.4 billion at $1.32 per share. During the most recent quarter, WMT exceeded analysts’ projections for EPS by 10.59%, and the retail behemoth shows year-over-year growth in all areas crucial to success. Humorously, its Net Change in Cash growth read as >9999.99%, which is literally off the charts or too large to quantify. WMT has a dividend yield of 1.57%, with a quarterly shareholder payout of 56 cents per share owned. According to analysts that provide yearly price projections, WMT has a consensus median price target of 155.00, with a high of 165.00 and a low of 130.00. This represents an 8.89% increase over its current price. Will WMT ever not have a buy rating?
Read Next: America is going mad—is this next?
America is definitely going a little mad…
Some states are threatening to break away. The rich are fleeing. The wealth gap is soaring.
According to a recent article in the New York Times, people are driving more recklessly than ever… and drinking more alcohol than ever too.
And that’s just the beginning…
Altercations on airplanes are now at all-time highs. So are murder rates. And violent crime is soaring across the board. Students are more disruptive than ever. Hate crimes have hit a 12-year high, according to the FBI.
The question of course is:
Where is this all headed… and what’s coming next?
Well, one of the wealthiest and most successful entrepreneurs in America has a very clear answer you’re unlikely to hear anywhere else…
Bill Bonner is a 73-year-old son of a tobacco farmer, who now owns six large properties in South America, Central America, and the U.S… plus three in Europe.
Bonner is also one of the most humble and thoughtful men in the world today. He’s the author of three New York Times bestsellers… and has built several homes with his own hands, using ancient building techniques.
I’m telling you about Bonner today because has just come forward with an important message…
What he calls: His 4th and Final Warning.
It’s worth paying attention to, because Bonner has made 3 other big macro-economic predictions in his career… and each one proved to be exactly right.
Today, Bonner says we are headed towards a very difficult period in the U.S.… one of our most difficult times ever… which will result in something he calls: “America’s Nightmare Winter.”
What does that mean, exactly—and how could it affect you and your money?
Bonner doesn’t claim to have all the answers–but he recently went public with the fascinating analysis, recorded at his 60-acre property overlooking one of Europe’s most beautiful rivers.
He says:
“I believe it falls on someone like me to warn people… clearly… and without distraction.
“I can do this now because I’m too rich to care about money… and too old to care about what anyone says about me.”
And in this analysis, Bonner explains exactly how he believes this difficult period will play out, and even more important: The 4 Steps every American should take right now to prepare.
Get the facts.
Learn how to protect yourself and get a peek inside Bonner’s spectacular European property.
We’ve posted Bonner’s full analysis and his 4 recommended steps on our website.
You can view it free of charge here…
