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So far in 2022, there have been few places for investors to park their cash safely. Pullbacks have been extensive, and bears have kept marching forward.
The Fed has become hawkish, supply chains have been disrupted, and geopolitical issues are still at play. Needless to say, we’ve found ourselves in a highly unique economic environment after a once-in-a-lifetime pandemic.
There have been a few bright spots in this volatility-packed market, and believe it or not, there are stocks out there up double-digit percentages year-to-date.
Three stocks – Campbell Soup (CPB - Free Report) , The Chef’s Warehouse (CHEF - Free Report) , and Kellogg’s (K - Free Report) – have all enjoyed strong price action throughout 2022, up by at least 10%. The year-to-date chart below illustrates the performance of all three companies while blending in the S&P 500.
Image Source: Zacks Investment Research
As we can see, all three companies’ shares have been much stronger than the S&P 500.
The story remains the same upon expanding the time horizon to cover the last year – all three companies’ shares have provided a much higher return than the general market.
Image Source: Zacks Investment Research
In addition, all three companies reside in the Zacks Food - Miscellaneous Industry, which is currently ranked in the top 26% of all Zacks Industries and a part of the Zacks Consumer Staples Sector. Due to its favorable Zacks Industry ranking, we expect the industry to outperform the market over the next three to six months.
Let’s examine each company a little closer to understand better why they would be solid portfolio adds.
Campbell Soup
Campbell Soup (CPB - Free Report) is a worldwide manufacturer and marketer of high-quality, branded convenience food products. The company is a Zacks Rank #2 (Buy) with an overall VGM Score of an A and resides within the Zacks Consumer Staples Sector.
In addition to a favorable Zacks Rank, the company has relatively solid valuation levels. Its current forward earnings multiple of 17.1X is well below 2020 highs of 20.9X and just above its five-year median value of 15.9X.
In addition, shares trade at an enticing 16% discount relative to the Zacks Consumer Staples Sector.
Image Source: Zacks Investment Research
CPB also rewards its shareholders via its 3.1% annual dividend yield with a payout ratio sitting sustainably at 52% of earnings. The company has increased its dividend once over the last five years, with a five-year annualized dividend growth rate of 1.4%.
Furthermore, the yield is much higher than that of the Zacks Consumer Staples Sector.
Image Source: Zacks Investment Research
The Chef’s Warehouse
The Chefs' Warehouse (CHEF - Free Report) is a distributor of specialty food products in the United States. The company sports the highly coveted Zacks Rank #1 (Strong Buy) with an overall VGM Score of a B and resides within the Zacks Consumer Staples Sector.
CHEF has robust forecasted bottom and top-line growth, and analysts have been substantially upping their earnings outlook over the last 60 days. The $0.35 per share estimate for the upcoming quarterly release reflects a triple-digit 775% growth in the bottom-line from the year-ago quarter.
Additionally, the $1.22 EPS estimate for the current fiscal year pencils in a quad-digit 2540% growth in earnings year-over-year.
Image Source: Zacks Investment Research
The Zacks Consensus Sales Estimate of $600 million for the upcoming quarter represents a substantial 40% increase in revenue compared to year-ago quarterly sales of $422 million. Looking ahead a bit, the $2.4 billion revenue estimate for FY22 forecasts a 38% expansion in the top-line year-over-year.
Image Source: Zacks Investment Research
Kellogg’s
Kellogg Company (K - Free Report) manufactures and markets ready-to-eat cereals and convenience foods with a balanced portfolio of cereal and snack products. The company is a Zacks Rank #3 (Hold) with an overall VGM Score of a B.
The cereal giant has respectable valuation levels, further displayed by its Style Score of a B for Value. Its 17.7X forward earnings multiple is nicely below 2020 highs of 18.6X and represents an enticing 13% discount relative to the Zacks Consumer Staples Sector.
Image Source: Zacks Investment Research
For investors with an appetite for income, K has that covered with its annual dividend that yields 3.2% and a payout ratio sitting at 56% of earnings. Impressively, the company has increased its dividend four times over the past years, with a five-year annualized dividend growth rate of a respectable 1.6%.
Additionally, the yield is much higher than that of the Zacks Consumer Staples Sector.
Image Source: Zacks Investment Research
Bottom Line
Believe it or not, a fair number of stocks have provided investors with a positive year-to-date performance, such as all three stocks above. They have weathered the storm, and due to their favorable Zacks Industry Ranking, their runs don’t seem to be over quite yet.
In addition, the Consumer Staples Sector is generally more defensive, and companies residing within it can generate revenue in all sorts of economic environments.
All three stocks would be solid choices for investors looking to add an additional layer of defense to their portfolios amid a volatile market. Furthermore, two of the companies – CPB and K – provide a reliable income stream, undoubtedly another major positive during market weakness.
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3 Stocks up Double-Digit Percentages in 2022
So far in 2022, there have been few places for investors to park their cash safely. Pullbacks have been extensive, and bears have kept marching forward.
The Fed has become hawkish, supply chains have been disrupted, and geopolitical issues are still at play. Needless to say, we’ve found ourselves in a highly unique economic environment after a once-in-a-lifetime pandemic.
There have been a few bright spots in this volatility-packed market, and believe it or not, there are stocks out there up double-digit percentages year-to-date.
Three stocks – Campbell Soup (CPB - Free Report) , The Chef’s Warehouse (CHEF - Free Report) , and Kellogg’s (K - Free Report) – have all enjoyed strong price action throughout 2022, up by at least 10%. The year-to-date chart below illustrates the performance of all three companies while blending in the S&P 500.
Image Source: Zacks Investment Research
As we can see, all three companies’ shares have been much stronger than the S&P 500.
The story remains the same upon expanding the time horizon to cover the last year – all three companies’ shares have provided a much higher return than the general market.
Image Source: Zacks Investment Research
In addition, all three companies reside in the Zacks Food - Miscellaneous Industry, which is currently ranked in the top 26% of all Zacks Industries and a part of the Zacks Consumer Staples Sector. Due to its favorable Zacks Industry ranking, we expect the industry to outperform the market over the next three to six months.
Let’s examine each company a little closer to understand better why they would be solid portfolio adds.
Campbell Soup
Campbell Soup (CPB - Free Report) is a worldwide manufacturer and marketer of high-quality, branded convenience food products. The company is a Zacks Rank #2 (Buy) with an overall VGM Score of an A and resides within the Zacks Consumer Staples Sector.
In addition to a favorable Zacks Rank, the company has relatively solid valuation levels. Its current forward earnings multiple of 17.1X is well below 2020 highs of 20.9X and just above its five-year median value of 15.9X.
In addition, shares trade at an enticing 16% discount relative to the Zacks Consumer Staples Sector.
Image Source: Zacks Investment Research
CPB also rewards its shareholders via its 3.1% annual dividend yield with a payout ratio sitting sustainably at 52% of earnings. The company has increased its dividend once over the last five years, with a five-year annualized dividend growth rate of 1.4%.
Furthermore, the yield is much higher than that of the Zacks Consumer Staples Sector.
Image Source: Zacks Investment Research
The Chef’s Warehouse
The Chefs' Warehouse (CHEF - Free Report) is a distributor of specialty food products in the United States. The company sports the highly coveted Zacks Rank #1 (Strong Buy) with an overall VGM Score of a B and resides within the Zacks Consumer Staples Sector.
CHEF has robust forecasted bottom and top-line growth, and analysts have been substantially upping their earnings outlook over the last 60 days. The $0.35 per share estimate for the upcoming quarterly release reflects a triple-digit 775% growth in the bottom-line from the year-ago quarter.
Additionally, the $1.22 EPS estimate for the current fiscal year pencils in a quad-digit 2540% growth in earnings year-over-year.
Image Source: Zacks Investment Research
The Zacks Consensus Sales Estimate of $600 million for the upcoming quarter represents a substantial 40% increase in revenue compared to year-ago quarterly sales of $422 million. Looking ahead a bit, the $2.4 billion revenue estimate for FY22 forecasts a 38% expansion in the top-line year-over-year.
Image Source: Zacks Investment Research
Kellogg’s
Kellogg Company (K - Free Report) manufactures and markets ready-to-eat cereals and convenience foods with a balanced portfolio of cereal and snack products. The company is a Zacks Rank #3 (Hold) with an overall VGM Score of a B.
The cereal giant has respectable valuation levels, further displayed by its Style Score of a B for Value. Its 17.7X forward earnings multiple is nicely below 2020 highs of 18.6X and represents an enticing 13% discount relative to the Zacks Consumer Staples Sector.
Image Source: Zacks Investment Research
For investors with an appetite for income, K has that covered with its annual dividend that yields 3.2% and a payout ratio sitting at 56% of earnings. Impressively, the company has increased its dividend four times over the past years, with a five-year annualized dividend growth rate of a respectable 1.6%.
Additionally, the yield is much higher than that of the Zacks Consumer Staples Sector.
Image Source: Zacks Investment Research
Bottom Line
Believe it or not, a fair number of stocks have provided investors with a positive year-to-date performance, such as all three stocks above. They have weathered the storm, and due to their favorable Zacks Industry Ranking, their runs don’t seem to be over quite yet.
In addition, the Consumer Staples Sector is generally more defensive, and companies residing within it can generate revenue in all sorts of economic environments.
All three stocks would be solid choices for investors looking to add an additional layer of defense to their portfolios amid a volatile market. Furthermore, two of the companies – CPB and K – provide a reliable income stream, undoubtedly another major positive during market weakness.