Those in the Consumer Staples sector carry a defensive nature, as these companies’ products possess an advantageous ability to generate consistent demand in the face of many economic situations.
In addition, many also pay dividends, providing the cherry on top for those who prefer income.
Three stocks from the realm – PepsiCo (PEP - Free Report) , Procter & Gamble (PG - Free Report) , and Kimberly-Clark (KMB - Free Report) – could be worth adding to your radar.
All three presently carry a favorable Zacks Rank and are low-beta, with the latter helping to tame volatility. Let’s take a closer look at each for those seeking a more defensive approach.
PepsiCo
Consumer Staples titan PepsiCo has enjoyed positive revisions following better-than-expected results, with the stock sporting a Zacks Rank #2 (Buy).
Regarding the mentioned release, the company exceeded the Zacks Consensus EPS estimate by 7% and reported sales more than 3% ahead of expectations thanks to strong consumer demand. Earnings saw growth of 13%, whereas revenue climbed 10% from the year-ago quarter.
And to top it off, the company lifted its FY23 guidance. Shares saw bullish activity post-earnings, similar to what occurred in the release prior.
The company is forecasted to grow steadily, with estimates suggesting 10% earnings growth in its current fiscal year on 7% higher revenues.
Procter & Gamble
Procter & Gamble, a current Zacks Rank #2 (Buy), is a branded consumer products company that markets its products in more than 180 countries. PG would likely attract income-focused investors, with shares currently yielding 2.4% annually.
The company has consistently boosted its payout as well, sporting a 6.5% five-year annualized dividend growth rate.
Shares may not entice value-conscious investors, with the current 24.8X forward earnings multiple sitting above the five-year median and the Zacks Consumer Staples sector average. Still, it’s worth noting that shares trade well below the 28.0X high in 2022.
And like PEP, Procter & Gamble posted results that beat expectations in its latest release just on July 28th, exceeding the Zacks Consensus EPS Estimate by 3.8% and delivering a positive 2.6% revenue beat.
Kimberly-Clark
Like those above, Kimberly-Clark has seen its earnings outlook improve over the last several months, helping land the stock into a Zacks Rank #2 (Buy). The revisions trend has been particularly notable for the company’s upcoming release in October, with the $1.58 per share estimate up nearly 3% since May.
For those seeking income, KMB has that covered; KMB shares currently yield a sizable 3.7% annually, well above the Zacks Consumer Staples sector average. The company’s payout has grown by a modest 4% over the last five years.
The company has delivered some big beats as of late, exceeding the Zacks Consensus EPS Estimate by an average of 8% across its last four quarters.
Bottom Line
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.
And all three low-beta stocks above – PepsiCo (PEP - Free Report) , Procter & Gamble (PG - Free Report) , and Kimberly-Clark (KMB - Free Report) – could be great considerations for those seeking a more defensive approach.
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Those in the Consumer Staples sector carry a defensive nature, as these companies’ products possess an advantageous ability to generate consistent demand in the face of many economic situations.
In addition, many also pay dividends, providing the cherry on top for those who prefer income.
Three stocks from the realm – PepsiCo (PEP - Free Report) , Procter & Gamble (PG - Free Report) , and Kimberly-Clark (KMB - Free Report) – could be worth adding to your radar.
All three presently carry a favorable Zacks Rank and are low-beta, with the latter helping to tame volatility. Let’s take a closer look at each for those seeking a more defensive approach.
PepsiCo
Consumer Staples titan PepsiCo has enjoyed positive revisions following better-than-expected results, with the stock sporting a Zacks Rank #2 (Buy).
Regarding the mentioned release, the company exceeded the Zacks Consensus EPS estimate by 7% and reported sales more than 3% ahead of expectations thanks to strong consumer demand. Earnings saw growth of 13%, whereas revenue climbed 10% from the year-ago quarter.
And to top it off, the company lifted its FY23 guidance. Shares saw bullish activity post-earnings, similar to what occurred in the release prior.
The company is forecasted to grow steadily, with estimates suggesting 10% earnings growth in its current fiscal year on 7% higher revenues.
Procter & Gamble
Procter & Gamble, a current Zacks Rank #2 (Buy), is a branded consumer products company that markets its products in more than 180 countries. PG would likely attract income-focused investors, with shares currently yielding 2.4% annually.
The company has consistently boosted its payout as well, sporting a 6.5% five-year annualized dividend growth rate.
Shares may not entice value-conscious investors, with the current 24.8X forward earnings multiple sitting above the five-year median and the Zacks Consumer Staples sector average. Still, it’s worth noting that shares trade well below the 28.0X high in 2022.
And like PEP, Procter & Gamble posted results that beat expectations in its latest release just on July 28th, exceeding the Zacks Consensus EPS Estimate by 3.8% and delivering a positive 2.6% revenue beat.
Kimberly-Clark
Like those above, Kimberly-Clark has seen its earnings outlook improve over the last several months, helping land the stock into a Zacks Rank #2 (Buy). The revisions trend has been particularly notable for the company’s upcoming release in October, with the $1.58 per share estimate up nearly 3% since May.
For those seeking income, KMB has that covered; KMB shares currently yield a sizable 3.7% annually, well above the Zacks Consumer Staples sector average. The company’s payout has grown by a modest 4% over the last five years.
The company has delivered some big beats as of late, exceeding the Zacks Consensus EPS Estimate by an average of 8% across its last four quarters.
Bottom Line
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.
And all three low-beta stocks above – PepsiCo (PEP - Free Report) , Procter & Gamble (PG - Free Report) , and Kimberly-Clark (KMB - Free Report) – could be great considerations for those seeking a more defensive approach.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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