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.
No. 2 Walgreens Boots Alliance (Nasdaq: WBA)
Walgreens Boots Alliance is a healthcare pharmacy and retailer. It’s one of the largest drugstore chains in the U.S. WBA owns Walgreens and Boots in addition to many other pharmaceutical manufacturing and distribution companies. The retail leader was formed in 2014 after Walgreens bought the 55% stake in Alliance Boots that it didn’t previously own.
According to CEO, Rosalind Brewer, Q1 results exceeded their expectations and the company is making immense progress in building out Walgreens Health. Brewer continued on by saying “we are raising our guidance for the full year and increasing investments in our people. Looking ahead, we are well positioned for sustainable, long-term value creation.” Much of its recent success is due to WBA’s integral role in COVID-19 vaccines and testing. This consumer staples stock is also the largest pediatric vaccine provider in the pharmaceutical industry.
WBA’s Q2 results demonstrated high earnings growth. The stocks Q2 sales increased 3% from the previous year Adjusted operating income was up 35.9%. With the company’s continued execution of strong results and innovative strategies to push the retail giant further, it’s no wonder why it was recently named one of the world’s 50 most innovative companies by Fast Company’s. Additionally, it was listed on Times 100 Most Influential Companies list.
Top Consumer Staple Stocks No. 1 Nestlé (OTC: NSRGY)
Nestlé began as the Anglo-Swiss Condensed Milk Company in 1866. Brothers, Charles and George Page founded the company. Nestlé founder, Henri Nestlé, was in fierce competition with the condensed milk brothers. In 1902, Anglo-Swiss merged with Nestlé. Nestlé started selling chocolate in 1904, and the rest is history. What was a once a condensed milk company is now a global powerhouse with over 2,000 brands under its roof. The brand categories range from baby food and healthcare nutrition to coffee and chilled & frozen food.
Nestlé reported three-month sales for 2022. So far, the results for this year are looking positive. Organic growth went up 7.6% and total reported sales increased by 5.4% to $22.2 billion. Mark Schneider, CEO, released a statement saying that in spite of these challenging times, “we delivered strong organic sales growth. Cost inflation continues to increase sharply, which will require further mitigating actions over the coming year.” He continued on to say that the “team addressed these headwinds and advanced our long-term strategy and sustainability objectives with agility and determination.”
This consumer staples stock believes the best way to be successful for the long-term is by creating value for shareholders and society. Their focus on shared value is so important right now. And Nestlé is doing a great job of harnessing that success for the long-term.
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