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Build Portfolio Defense with These 3 Buy-Rated Stocks

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Stocks in the Zacks Consumer Staples sector carry a defensive nature, as these companies’ products have an advantageous ability to generate consistent demand in the face of many economic situations.

Three top-ranked stocks from the realm – General Mills (GIS - Free Report) Molson Coors (TAP - Free Report) , and Procter & Gamble (PG - Free Report) – could all be considerations for investors looking to heighten their portfolio’s defense.

Let’s take a closer look at each one.

General Mills

General Mills is a global manufacturer and marketer of branded consumer foods sold through retail stores. Analysts have taken their expectations modestly higher across the board, landing the stock into a Zacks Rank #2 (Buy).

Shares have delivered market-beating gains over the last month, gaining 9% in value and widely outperforming relative to the S&P 500 thanks to better-than-expected quarterly results.

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Image Source: Zacks Investment Research

In fact, the company has regularly exceeded earnings expectations as of late, beating our consensus EPS expectations by an average of 7% across its last four releases. Shares could also interest income-focused investors, with GIS shares currently yielding a solid 3.4% annually.

Dividend growth is also apparent, with the company boasting a 4% five-year annualized dividend growth rate.

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Image Source: Zacks Investment Research

Molson Coors

With centuries of operations, Molson Coors delivers extraordinary brands that delight the world's beer drinkers. The stock sports a Zacks Rank #2 (Buy), with earnings expectations creeping higher across the board.

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Image Source: Zacks Investment Research

Keep an eye out for the company’s upcoming quarterly release expected in early May, as consensus expectations currently allude to a 29% pop in earnings on 6% higher sales. And shares aren’t valuation stretched, with the current 11.8X forward 12-month earnings multiple nicely beneath the respective Zacks Beverages – Alcohol industry average of 18.3X.

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Image Source: Zacks Investment Research

Better-than-expected quarterly results have given fuel to shares in back-to-back instances, as we can see illustrated below.

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Image Source: Zacks Investment Research

Procter & Gamble

Procter & Gamble, also commonly referred to as P&G, is a branded consumer products company. The stock presently sports a favorable Zacks Rank #2 (Buy). Like TAP, better-than-expected quarterly results have pleased investors, with shares moving higher post-earnings in back-to-back instances.

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Image Source: Zacks Investment Research

The company’s shareholder-friendly nature can’t be overlooked, currently sporting a 6% five-year annualized dividend growth rate. Shares currently yield 2.3% annually paired with a payout ratio sitting at 59% of the company’s earnings.

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Image Source: Zacks Investment Research

Bottom Line

Consumer Staples stocks can heighten a portfolio’s defense, as these companies’ products generate reliable and consistent demand in the face of many economic situations.

In addition, many of these stocks pay dividends, undoubtedly a significant boost.

For those looking to shield themselves against volatility, all three stocks above – General Mills (GIS - Free Report) Molson Coors (TAP - Free Report) , and Procter & Gamble (PG - Free Report) – could all be of interest.

All three have seen their near-term earnings outlooks improve as of late, a major positive.


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Procter & Gamble Company (The) (PG) - free report >>

General Mills, Inc. (GIS) - free report >>

Molson Coors Beverage Company (TAP) - free report >>

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