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Consumer Staples Sector Regains Momentum in 2026: 5 Top Picks

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Key Takeaways

  • Este Lauder is driving recovery through digital growth, Beauty Reimagined and China demand.
  • New York Times is boosting digital subscriptions with bundled lifestyle content and ARPU growth.
  • Tyson Foods and FMX are benefiting from strong execution, protein demand and loyalty ecosystems.

Wall Street’s impressive bull run of the last three years has received yet another breakthrough this year. The consumer staples sector, which has not participated in this astonishing growth of U.S. stock markets so far, has gathered momentum. 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 8.7%.

At this stage, we recommend buying five consumer staples bigwigs with a favorable Zacks Rank. These are: The Estée Lauder Companies Inc. (EL - Free Report) , The New York Times Co. (NYT - Free Report) , Archer-Daniels-Midland Co. (ADM - Free Report) , Tyson Foods Inc. (TSN - Free Report) and Fomento Económico Mexicano, S.A.B. de C.V. (FMX - Free Report) .

Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our five picks year to date.

Zacks Investment Research
Image Source: Zacks Investment Research

The Estée Lauder Companies Inc.

Zacks Rank #1 Estée Lauder continues to gain traction as its Profit Recovery and Growth Plan supports margin recovery, operational efficiencies and stronger sales visibility. The Beauty Reimagined strategy, digital expansion and portfolio investments are helping EL improve innovation, consumer reach and online engagement, while emerging markets and improving trends in Mainland China provide long-term growth support. 

Online sales growth, stronger social commerce momentum and broader distribution across Sephora, Amazon Premium Beauty and TikTok Shop continue to strengthen the company’s omnichannel position, positioning EL for a more sustainable long-term recovery and growth trajectory.

The Estée Lauder Companies has an expected revenue and earnings growth rate of 3.6% and 32.5%, respectively, for the next year (ending June 2027). The Zacks Consensus Estimate for next year’s earnings has improved 0.9% over the last seven days.

The New York Times Co.

Zacks Rank #2 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 9.1% and 17.9%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.7% over the last seven days. 

Archer-Daniels-Midland Co.

Zacks Rank #2 Archer-Daniels-Midland is benefiting from a rebound in its Nutrition segment. Human Nutrition is gaining traction, with the Flavors portfolio benefiting from solid North American demand, international customer wins and improved margins from a favorable mix and disciplined pricing. 

ADM continues to advance its Optimize, Drive and Grow pillars, enhancing productivity, accelerating cost savings, expanding BioSolutions and leveraging digital tools to unlock margin opportunities and strengthen customer reach.

ADM is actively managing productivity and innovation as well as aligning work to the interconnected trends in food security, health and wellbeing. The company is well-positioned for sustainable long-term profit growth across new avenues. 

ADM has been creating additional margin opportunities, opening up channels to customers, advancing digital technologies in areas like farmer needs, the extension of Regen Act programs and partnerships, and the growth of its BioSolutions platform. 

Archer-Daniels-Midland has an expected revenue and earnings growth rate of 6.5% and 32.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 6.6% over the last 30 days.

Tyson Foods Inc.

Zacks Rank #2 Tyson Foods benefits from a diversified, multi-protein and multi-channel portfolio that supports resilience across varying market cycles. Second-quarter fiscal 2026 results reflected strong execution, led by momentum in the Chicken and Prepared Foods businesses amid healthy protein demand across retail and foodservice channels. 

TSN’s Chicken segment remains a key earnings driver, supported by volume growth, value-added mix and operational improvements, while Prepared Foods delivers stable, higher-margin growth through strong brands and market share gains. TSN also maintains disciplined capital allocation, solid liquidity and healthy free cash flow generation, supporting investments and shareholder returns.

Tyson Foods has an expected revenue and earnings growth rate of 4.5% and 0.5%, respectively, for the current year (ending September 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 4.8% over the last 30 days.

Fomento Económico Mexicano, S.A.B. de C.V. 

Zacks Rank #1 Fomento Económico Mexicano has been benefiting from the steady execution of its Forward Strategy. FMX’s transformation into a focused, financially disciplined, and shareholder-oriented enterprise has strengthened its retail, health, fuel, digital, and beverage platforms. 

FMX continues to build its financial and loyalty ecosystem around OXXO, with Spin by OXXO and Spin Premia increasing engagement and expanding penetration. FMX’s affordability strategy, including promotional activity and price-package architecture, remains central to boosting traffic.

FMX’s digital momentum, led by Spin by OXXO and Spin Premia, and its disciplined capital allocation plan, balancing investments with robust shareholder returns, underscore its financial resilience and long-term commitment to sustainable value creation. 

Fomento Económico Mexicano has an expected revenue and earnings growth rate of 16.2% and 81.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 6.8% over the last 30 days.

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