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5 Consumer Staples Giants to Buy Amid the Sector's Strong Momentum
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Key Takeaways
The Consumer Staples sector is up 13.2% YTD, ranking third among S&P 500 broad sectors amid a value rotation.
EL, HSY, KMB, MNST and NYT are cited as top consumer staples picks to tap sector's ongoing momentum.
The group is benefiting from pricing discipline, innovation, digital expansion and supply-chain improvements.
Wall Street’s impressive bull run of the last three years has received an initial breakthrough this year, too. The consumer staples sector, which has not participated in this astonishing growth of U.S. stock markets so far, has gathered momentum.
As market participants shifted their preference from highly overvalued growth-oriented sectors to more value-oriented sectors, consumer staples stocks gathered pace. Year to date, the Consumer Staples Select Sector SPDR (XLP), one out of the 11 broad sectors of the S&P 500 Index, has advanced 13.2%, third only after the Energy and Materials sectors.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
The Estée Lauder Companies Inc.
Estée Lauder is focused on rebuilding profitability through its expanded Profit Recovery and Growth Plan, which aims to restore margins while supporting sustainable sales growth. EL’s disciplined cost actions combined with increased consumer-facing investments are improving efficiency and agility.
The “Beauty Reimagined” strategy of EL is gaining traction through stronger innovation, expanded global reach and improved brand execution. Digital remains a key growth driver, supported by social commerce, broader online distribution and a new Shopify partnership. Solid momentum in emerging markets, including China, Mexico and India, further supports confidence in a durable turnaround and long-term growth.
Estée Lauder has an expected revenue and earnings growth rate of 4% and 46.4%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 1.8% over the last seven days. EL has a current dividend yield of 1.41%.
The Hershey Co.
Hershey is focused on strengthening innovation, supply-chain agility and commercial execution as it expands its presence across the snacking category. HSY is supported by strong pricing discipline, a successful innovation pipeline and solid growth in salty snacks.
Hershey is progressing through a multi-year transformation that modernizes and integrates its supply chain, strengthens commercial capabilities, and enhances demand forecasting and execution. HSY highlighted upgrades across procurement, production, distribution and commercial planning, supported by investments in data, analytics and digital tools.
HSY’s retail takeaway improved across core categories, reflecting better shelf execution and effective brand investment. Management expressed confidence in returning to its long-term growth algorithm in the following year.
Hershey has an expected revenue and earnings growth rate of 4.1% and 13.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 2% over the last seven days. HSY has a current dividend yield of 2.37%.
Kimberly-Clark Corp.
Kimberly-Clark is advancing its transformation through the Powering Care strategy, with fourth-quarter 2025 results showing improving growth quality, profitability and organizational focus. Innovation remains a central pillar of KMB’s growth agenda, with management underscoring that recent performance has become increasingly innovation-led across its portfolio.
KMB’s stronger organic growth and volume trends reflect better consumer engagement and more consistent execution across regions. Innovation-led performance, guided by a structured “good-better-best” approach, is driving premiumization, expanding consumer reach and reinforcing brand strength.
The shift toward a volume and mix-led growth model underscores healthier demand dynamics, while solid productivity execution and supply-chain efficiencies help protect KMB’s margins and support continued reinvestment.
Hershey has an expected revenue and earnings growth rate of -2.1% and -6.2%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.2% over the last 30 days. KMB has a current dividend yield of 4.83%.
Monster Beverage Corp.
Monster Beverage continues to benefit from the expansion of the energy drinks market and product launches, reinforcing its category strength. MNST continues to benefit from constant growth in the global energy drink market, backed by strong demand across convenience stores and other key retail channels. Improving margins, supported by easing supply-chain pressures and lower costs, have contributed to MNST’s financial stability.
Product innovation remains a core growth driver for MNST. The company continues to invest heavily in new launches to strengthen its global footprint. Last year, Monster Beverage rolled out several high-profile innovations, with a solid innovation pipeline planned for 2026.
Building on the success of its $1 billion Ultra brand, MNST also introduced a new visual identity and merchandising strategy with dedicated Zero Sugar coolers, supported by a viral social media campaign around its flagship Zero Ultra drink.
Monster Beverage has an expected revenue and earnings growth rate of 9.5% and 22.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.5% over the last 60 days.
The New York Times Co.
New York Times is capitalizing on its multi-platform strategy to drive digital growth, broaden audience engagement, and diversify revenue streams. NYT’s expansion into lifestyle categories such as Cooking, Games, and Sports, supported by bundled subscription offerings, is deepening customer relationships and boosting retention.
Strong execution in digital subscription growth and ARPU improvement reflects effective monetization of NYT’s content portfolio. A solid balance sheet and healthy free cash flow provide ample flexibility for continued investment and shareholder returns. While the ongoing decline in print and rising operating costs pose structural challenges, NYT’s ability to adapt quickly and leverage high-value verticals positions it well for growth.
New York Times has an expected revenue and earnings growth rate of 7.9 and 11.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 2.2% over the last seven days. NYT has a current dividend yield of 1.06%.
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5 Consumer Staples Giants to Buy Amid the Sector's Strong Momentum
Key Takeaways
Wall Street’s impressive bull run of the last three years has received an initial breakthrough this year, too. The consumer staples sector, which has not participated in this astonishing growth of U.S. stock markets so far, has gathered momentum.
As market participants shifted their preference from highly overvalued growth-oriented sectors to more value-oriented sectors, consumer staples stocks gathered pace. Year to date, the Consumer Staples Select Sector SPDR (XLP), one out of the 11 broad sectors of the S&P 500 Index, has advanced 13.2%, third only after the Energy and Materials sectors.
At this stage, we recommend buying five consumer staples behemoths with a favorable Zacks Rank. These are: The Estée Lauder Companies Inc. (EL - Free Report) , The Hershey Co. (HSY - Free Report) , Kimberly-Clark Corp. (KMB - Free Report) , Monster Beverage Corp. (MNST - Free Report) and The New York Times Co. (NYT - Free Report) . Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
The Estée Lauder Companies Inc.
Estée Lauder is focused on rebuilding profitability through its expanded Profit Recovery and Growth Plan, which aims to restore margins while supporting sustainable sales growth. EL’s disciplined cost actions combined with increased consumer-facing investments are improving efficiency and agility.
The “Beauty Reimagined” strategy of EL is gaining traction through stronger innovation, expanded global reach and improved brand execution. Digital remains a key growth driver, supported by social commerce, broader online distribution and a new Shopify partnership. Solid momentum in emerging markets, including China, Mexico and India, further supports confidence in a durable turnaround and long-term growth.
Estée Lauder has an expected revenue and earnings growth rate of 4% and 46.4%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 1.8% over the last seven days. EL has a current dividend yield of 1.41%.
The Hershey Co.
Hershey is focused on strengthening innovation, supply-chain agility and commercial execution as it expands its presence across the snacking category. HSY is supported by strong pricing discipline, a successful innovation pipeline and solid growth in salty snacks.
Hershey is progressing through a multi-year transformation that modernizes and integrates its supply chain, strengthens commercial capabilities, and enhances demand forecasting and execution. HSY highlighted upgrades across procurement, production, distribution and commercial planning, supported by investments in data, analytics and digital tools.
HSY’s retail takeaway improved across core categories, reflecting better shelf execution and effective brand investment. Management expressed confidence in returning to its long-term growth algorithm in the following year.
Hershey has an expected revenue and earnings growth rate of 4.1% and 13.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 2% over the last seven days. HSY has a current dividend yield of 2.37%.
Kimberly-Clark Corp.
Kimberly-Clark is advancing its transformation through the Powering Care strategy, with fourth-quarter 2025 results showing improving growth quality, profitability and organizational focus. Innovation remains a central pillar of KMB’s growth agenda, with management underscoring that recent performance has become increasingly innovation-led across its portfolio.
KMB’s stronger organic growth and volume trends reflect better consumer engagement and more consistent execution across regions. Innovation-led performance, guided by a structured “good-better-best” approach, is driving premiumization, expanding consumer reach and reinforcing brand strength.
The shift toward a volume and mix-led growth model underscores healthier demand dynamics, while solid productivity execution and supply-chain efficiencies help protect KMB’s margins and support continued reinvestment.
Hershey has an expected revenue and earnings growth rate of -2.1% and -6.2%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.2% over the last 30 days. KMB has a current dividend yield of 4.83%.
Monster Beverage Corp.
Monster Beverage continues to benefit from the expansion of the energy drinks market and product launches, reinforcing its category strength. MNST continues to benefit from constant growth in the global energy drink market, backed by strong demand across convenience stores and other key retail channels. Improving margins, supported by easing supply-chain pressures and lower costs, have contributed to MNST’s financial stability.
Product innovation remains a core growth driver for MNST. The company continues to invest heavily in new launches to strengthen its global footprint. Last year, Monster Beverage rolled out several high-profile innovations, with a solid innovation pipeline planned for 2026.
Building on the success of its $1 billion Ultra brand, MNST also introduced a new visual identity and merchandising strategy with dedicated Zero Sugar coolers, supported by a viral social media campaign around its flagship Zero Ultra drink.
Monster Beverage has an expected revenue and earnings growth rate of 9.5% and 22.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.5% over the last 60 days.
The New York Times Co.
New York Times is capitalizing on its multi-platform strategy to drive digital growth, broaden audience engagement, and diversify revenue streams. NYT’s expansion into lifestyle categories such as Cooking, Games, and Sports, supported by bundled subscription offerings, is deepening customer relationships and boosting retention.
Strong execution in digital subscription growth and ARPU improvement reflects effective monetization of NYT’s content portfolio. A solid balance sheet and healthy free cash flow provide ample flexibility for continued investment and shareholder returns. While the ongoing decline in print and rising operating costs pose structural challenges, NYT’s ability to adapt quickly and leverage high-value verticals positions it well for growth.
New York Times has an expected revenue and earnings growth rate of 7.9 and 11.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 2.2% over the last seven days. NYT has a current dividend yield of 1.06%.