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5 Consumer Staple Stocks to Trump Earnings Despite Coronavirus
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Consumer Staples sector players appear to be in decent shape this earnings season even as most sectors bear the brunt of coronavirus-related woes.
While results of major companies like Estee Lauder (EL - Free Report) and Tyson Foods were affected by coronavirus-led disruptions, players like Kraft Heinz, Kellogg (K - Free Report) , Church & Dwight and Clorox benefited from increased demand for products. Incidentally, the panic-buying of essentials like packaged foods and beverages, disinfecting products and other household and personal care items has been working well for many players in the sector.
Apart from burgeoning demand for essentials, contributions from buyouts, product innovation and other brand-building efforts bode well for consumer staple players. Further, their stringent saving and restructuring efforts have been helping tackle cost inflation as well as expenditures related to managing operations amid the COVID-19 crisis. Notably, per the latest Earnings Preview, the Consumer Staples sector is expected to see revenue growth of 9.9% and an earnings increase of 9.1% this quarter. In fact, this space has always been a go-to place for investors who want to play it safe during extreme market fluctuations.
All said, we have identified five consumer staple stocks, which are poised to beat the Zacks Consensus Estimate this earnings season, with the help of the Zacks Stock Screener. Our research shows that for stocks with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), the chances of a positive earnings surprise are as high as 70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
5 Solid Picks
Grocery Outlet Holding Corp. (GO - Free Report) is mainly a provider of grocery, dairy and frozen products, among others. The stock has a Zacks Rank #1 and an Earnings ESP of +33.33%. The Zacks Consensus Estimate for first-quarter earnings is pegged at 24 cents. The company, which is scheduled to release results on May 11, has delivered a positive earnings surprise of 31.1%, on average, in the trailing three quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Grocery Outlet Holding Corp. Price, Consensus and EPS Surprise
The Hain Celestial Group, Inc. (HAIN - Free Report) , with a Zacks Rank #1 and an Earnings ESP of +9.24%, is worth betting on. The Zacks Consensus Estimate for third-quarter fiscal 2020 earnings is pegged at 24 cents per share, suggesting growth of 14.3% from the prior-year quarter’s reported figure. This organic and natural products company has a trailing four-quarter positive earnings surprise of about 7%, on average. The company is slated to announce results on May 7.
The Hain Celestial Group, Inc. Price, Consensus and EPS Surprise
Nomad Foods Limited (NOMD - Free Report) also deserves a mention. The stock has a Zacks Rank #2 and an Earnings ESP of +5.32%. The Zacks Consensus Estimate for first-quarter 2020 earnings is pegged at 31 cents. This frozen food provider has a trailing four-quarter positive earnings surprise of 11.8%, on average. The company is slated to announce results on May 7.
Nomad Foods Limited Price, Consensus and EPS Surprise
Investors can even count on TreeHouse Foods, Inc. (THS - Free Report) , a consumer packaged food and beverage manufacturer, with a Zacks Rank #3 and an Earnings ESP of +25.00%. The Zacks Consensus Estimate for first-quarter 2020 earnings is pegged at 32 cents, indicating a significant increase from the prior-year quarter’s reported figure. The company has a trailing four-quarter positive earnings surprise of 9.1%, on average. TreeHouse Foods is slated to announce results on May 7.
TreeHouse Foods, Inc. Price, Consensus and EPS Surprise
Another worthwhile option is International Flavors & Fragrances Inc. (IFF - Free Report) , with a Zacks Rank #3 and an Earnings ESP of +2.19%. The Zacks Consensus Estimate for first-quarter 2020 earnings is pegged at $1.60 per share, suggesting growth of 1.9% from the prior-year period’s reported figure. The company, which produces flavors and fragrances for use in various consumer products, delivered a positive earnings surprise of 2.8% in the last reported quarter.
International Flavors & Fragrances Inc. Price, Consensus and EPS Surprise
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5 Consumer Staple Stocks to Trump Earnings Despite Coronavirus
Consumer Staples sector players appear to be in decent shape this earnings season even as most sectors bear the brunt of coronavirus-related woes.
While results of major companies like Estee Lauder (EL - Free Report) and Tyson Foods were affected by coronavirus-led disruptions, players like Kraft Heinz, Kellogg (K - Free Report) , Church & Dwight and Clorox benefited from increased demand for products. Incidentally, the panic-buying of essentials like packaged foods and beverages, disinfecting products and other household and personal care items has been working well for many players in the sector.
Apart from burgeoning demand for essentials, contributions from buyouts, product innovation and other brand-building efforts bode well for consumer staple players. Further, their stringent saving and restructuring efforts have been helping tackle cost inflation as well as expenditures related to managing operations amid the COVID-19 crisis. Notably, per the latest Earnings Preview, the Consumer Staples sector is expected to see revenue growth of 9.9% and an earnings increase of 9.1% this quarter. In fact, this space has always been a go-to place for investors who want to play it safe during extreme market fluctuations.
All said, we have identified five consumer staple stocks, which are poised to beat the Zacks Consensus Estimate this earnings season, with the help of the Zacks Stock Screener. Our research shows that for stocks with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), the chances of a positive earnings surprise are as high as 70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
5 Solid Picks
Grocery Outlet Holding Corp. (GO - Free Report) is mainly a provider of grocery, dairy and frozen products, among others. The stock has a Zacks Rank #1 and an Earnings ESP of +33.33%. The Zacks Consensus Estimate for first-quarter earnings is pegged at 24 cents. The company, which is scheduled to release results on May 11, has delivered a positive earnings surprise of 31.1%, on average, in the trailing three quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Grocery Outlet Holding Corp. Price, Consensus and EPS Surprise
Grocery Outlet Holding Corp. price-consensus-eps-surprise-chart | Grocery Outlet Holding Corp. Quote
The Hain Celestial Group, Inc. (HAIN - Free Report) , with a Zacks Rank #1 and an Earnings ESP of +9.24%, is worth betting on. The Zacks Consensus Estimate for third-quarter fiscal 2020 earnings is pegged at 24 cents per share, suggesting growth of 14.3% from the prior-year quarter’s reported figure. This organic and natural products company has a trailing four-quarter positive earnings surprise of about 7%, on average. The company is slated to announce results on May 7.
The Hain Celestial Group, Inc. Price, Consensus and EPS Surprise
The Hain Celestial Group, Inc. price-consensus-eps-surprise-chart | The Hain Celestial Group, Inc. Quote
Nomad Foods Limited (NOMD - Free Report) also deserves a mention. The stock has a Zacks Rank #2 and an Earnings ESP of +5.32%. The Zacks Consensus Estimate for first-quarter 2020 earnings is pegged at 31 cents. This frozen food provider has a trailing four-quarter positive earnings surprise of 11.8%, on average. The company is slated to announce results on May 7.
Nomad Foods Limited Price, Consensus and EPS Surprise
Nomad Foods Limited price-consensus-eps-surprise-chart | Nomad Foods Limited Quote
Investors can even count on TreeHouse Foods, Inc. (THS - Free Report) , a consumer packaged food and beverage manufacturer, with a Zacks Rank #3 and an Earnings ESP of +25.00%. The Zacks Consensus Estimate for first-quarter 2020 earnings is pegged at 32 cents, indicating a significant increase from the prior-year quarter’s reported figure. The company has a trailing four-quarter positive earnings surprise of 9.1%, on average. TreeHouse Foods is slated to announce results on May 7.
TreeHouse Foods, Inc. Price, Consensus and EPS Surprise
TreeHouse Foods, Inc. price-consensus-eps-surprise-chart | TreeHouse Foods, Inc. Quote
Another worthwhile option is International Flavors & Fragrances Inc. (IFF - Free Report) , with a Zacks Rank #3 and an Earnings ESP of +2.19%. The Zacks Consensus Estimate for first-quarter 2020 earnings is pegged at $1.60 per share, suggesting growth of 1.9% from the prior-year period’s reported figure. The company, which produces flavors and fragrances for use in various consumer products, delivered a positive earnings surprise of 2.8% in the last reported quarter.
International Flavors & Fragrances Inc. Price, Consensus and EPS Surprise
International Flavors & Fragrances Inc. price-consensus-eps-surprise-chart | International Flavors & Fragrances Inc. Quote
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>