We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Currently, the Zacks Consumer Staples sector is ranked in the top 25% of all Zacks Sectors, indicating that companies within have witnessed positive earnings estimate revisions.
Those in the 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 with a preference for income.
Three stocks from the realm – Lamb Weston (LW - Free Report) , The Coca-Cola Company (KO - Free Report) , and Clorox (CLX - 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.
Coca-Cola
The Coca-Cola Company, a current Zacks Rank #2 (Buy), is best known for its flagship Coca-Cola beverage. The company has also invested in healthier alternatives such as coffee, sparkling water, and sports drinks.
KO’s 43% trailing twelve-month return on equity is certainly worth highlighting, indicating that the company has efficiently generated profits from existing assets relative to other peers in the Zacks Consumer Staples sector.
Image Source: Zacks Investment Research
The company is a member of the elite Dividend Kings club, reflecting an unparalleled commitment to shareholders through 50+ years of increased payouts. Shares currently yield a solid 3% annually with a payout ratio sitting at 73% of earnings.
Image Source: Zacks Investment Research
Lamb Weston
Lamb Weston, a current Zacks Rank #2 (Buy), is a leading global manufacturer, marketer, and distributor of value-added frozen potato products. The company has enjoyed positive earnings estimate revisions for some time, with the trend particularly noteworthy for its current fiscal year.
Image Source: Zacks Investment Research
Lamb Weston has been a big-time earnings performer, exceeding the Zacks Consensus EPS estimate by an average of nearly 50% across its last four quarters. The company delivered a sizable 45% EPS beat in its latest print and reported sales 6% above expectations.
The company’s sales growth has been strong as of late, further displayed in the chart below.
Image Source: Zacks Investment Research
Keep an eye out for LW’s next quarterly release expected on July 25th; the Zacks Consensus EPS estimate of $1.06 suggests a 60% improvement in earnings from the year-ago quarter. The quarterly estimate has been revised marginally higher over the last several months.
Clorox
Clorox, a Zacks Rank #2 (Buy), markets some of the most trusted and recognized brands, including its namesake bleach and cleaning products. Similar to LW, the revisions trend has been notable for Clorox’s current fiscal year, with the quarterly EPS estimate up 2% just over the last several months.
Image Source: Zacks Investment Research
In addition, the company sports an inspiring growth profile, with earnings forecasted to soar 11% in its current fiscal year (FY23) and a further 25% in FY24. Revenue growth is also apparent, forecasted to see growth of 2% in FY23 and 3% in FY24.
It’s worth noting that value-conscious investors may not find CLX shares as attractive, further reflected by the Style Score of “F” for Value. Shares currently trade at a 35.1X forward earnings multiple, well above the five-year median.
Image Source: Zacks Investment Research
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 companies above – Lamb Weston (LW - Free Report) , The Coca-Cola Company (KO - Free Report) , and Clorox (CLX - Free Report) – could be great considerations for those seeking a more defensive approach.
All three companies currently sport a favorable Zacks Rank, indicating optimism among analysts.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
3 Stocks Tailored Toward a Defensive Approach
Currently, the Zacks Consumer Staples sector is ranked in the top 25% of all Zacks Sectors, indicating that companies within have witnessed positive earnings estimate revisions.
Those in the 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 with a preference for income.
Three stocks from the realm – Lamb Weston (LW - Free Report) , The Coca-Cola Company (KO - Free Report) , and Clorox (CLX - 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.
Coca-Cola
The Coca-Cola Company, a current Zacks Rank #2 (Buy), is best known for its flagship Coca-Cola beverage. The company has also invested in healthier alternatives such as coffee, sparkling water, and sports drinks.
KO’s 43% trailing twelve-month return on equity is certainly worth highlighting, indicating that the company has efficiently generated profits from existing assets relative to other peers in the Zacks Consumer Staples sector.
Image Source: Zacks Investment Research
The company is a member of the elite Dividend Kings club, reflecting an unparalleled commitment to shareholders through 50+ years of increased payouts. Shares currently yield a solid 3% annually with a payout ratio sitting at 73% of earnings.
Image Source: Zacks Investment Research
Lamb Weston
Lamb Weston, a current Zacks Rank #2 (Buy), is a leading global manufacturer, marketer, and distributor of value-added frozen potato products. The company has enjoyed positive earnings estimate revisions for some time, with the trend particularly noteworthy for its current fiscal year.
Image Source: Zacks Investment Research
Lamb Weston has been a big-time earnings performer, exceeding the Zacks Consensus EPS estimate by an average of nearly 50% across its last four quarters. The company delivered a sizable 45% EPS beat in its latest print and reported sales 6% above expectations.
The company’s sales growth has been strong as of late, further displayed in the chart below.
Image Source: Zacks Investment Research
Keep an eye out for LW’s next quarterly release expected on July 25th; the Zacks Consensus EPS estimate of $1.06 suggests a 60% improvement in earnings from the year-ago quarter. The quarterly estimate has been revised marginally higher over the last several months.
Clorox
Clorox, a Zacks Rank #2 (Buy), markets some of the most trusted and recognized brands, including its namesake bleach and cleaning products. Similar to LW, the revisions trend has been notable for Clorox’s current fiscal year, with the quarterly EPS estimate up 2% just over the last several months.
Image Source: Zacks Investment Research
In addition, the company sports an inspiring growth profile, with earnings forecasted to soar 11% in its current fiscal year (FY23) and a further 25% in FY24. Revenue growth is also apparent, forecasted to see growth of 2% in FY23 and 3% in FY24.
It’s worth noting that value-conscious investors may not find CLX shares as attractive, further reflected by the Style Score of “F” for Value. Shares currently trade at a 35.1X forward earnings multiple, well above the five-year median.
Image Source: Zacks Investment Research
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 companies above – Lamb Weston (LW - Free Report) , The Coca-Cola Company (KO - Free Report) , and Clorox (CLX - Free Report) – could be great considerations for those seeking a more defensive approach.
All three companies currently sport a favorable Zacks Rank, indicating optimism among analysts.