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Buy 5 High-Flying Consumer Staples Stocks for a Stable Portfolio in Q4
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Key Takeaways
KO leverages global scale, innovation and AI-driven productivity as it raises its 2026 outlook.
MO relies on pricing, cost controls and smoke-free investments to offset cigarette volume declines.
LW, SJM and ELF pursue growth through innovation, efficiency and portfolio expansion.
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 in 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 10.8%.
At this stage, we recommend buying five consumer staples bigwigs with a favorable Zacks Rank that have provided more than 20% returns year to date. These are: The Coca-Cola Co. (KO - Free Report) , Altria Group Inc. (MO - Free Report) , Lamb Weston Holdings Inc. (LW - Free Report) , The J. M. Smucker Co. (SJM - Free Report) and e.l.f. Beauty Inc. (ELF - 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.
Image Source: Zacks Investment Research
The Coca-Cola Co.
Zacks Rank #2 Coca-Cola’s growth story is supported by its broad portfolio, global scale and disciplined execution. These strengths drive resilient growth, share gains and margin expansion. Innovation is central to KO, with products, new formats and campaigns expanding consumption occasions and reinforcing brand relevance.
KO’s digital tools, advanced analytics and AI are improving forecasting, pricing, customer engagement and bottling-system execution, supporting productivity and organic growth. KO raised its 2026 outlook, reflecting confidence in the company’s resilient model, operating leverage and long-term earnings potential.
Coca-Cola has an expected revenue and earnings growth rate of 4% and 10%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.3% over the last seven days.
Altria Group Inc.
Zacks Rank #2 Altria Group continues to benefit from strong pricing execution, expanding on! PLUS distribution and disciplined cost management, helping offset cigarette volume declines and preserve earnings resilience.
Smokeable pricing, margin expansion and strong free cash flow reinforce MO’s financial strength. MO’s growing nicotine pouch platform, broader smoke-free investments and shareholder-return strategy, including dividends and buybacks, further support growth.
Altria Group has an expected revenue and earnings growth rate of 2.1% and 4.6%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has remained the same over the last 60 days.
Lamb Weston Holdings Inc.
Zacks Rank #1 Lamb Weston continues to strengthen its business through sustained customer gains, operational improvements and disciplined spending. LW’s expanding relationships with major restaurant chains and continued product innovation provide a foundation for long-term growth. LW’s Focus to Win strategy is helping simplify operations, improve manufacturing efficiency and deliver lasting cost savings.
Industry capacity rationalization also supports better utilization and a more balanced supply setup. LW’s continued innovation across foodservice and retail reinforces product differentiation and customer loyalty.
Although restaurant demand remains subdued and International operations face challenges, ongoing optimization efforts should support gradual earnings recovery. LW’s healthy cash generation and disciplined capital allocation further support shareholder returns.
Lamb Weston has an expected revenue and earnings growth rate of -0.8% and 6.3%, respectively, for the current year (ending May 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 1% over the last seven days.
The J. M. Smucker Co.
Zacks Rank #2 J. M. Smucker benefits from a portfolio of established brands, led by Uncrustables, Cafe Bustelo, coffee and pet foods, with room to expand distribution, household penetration and usage occasions.
SJM’s increased capacity, broader channel reach and product innovation support long-term growth, while healthy cash generation and debt reduction improve financial flexibility. Lower green coffee costs also support SJM’s profitability as pricing adjusts.
J. M. Smucker has an expected revenue and earnings growth rate of -1.4% and 17.1%, respectively, for the current year (ending April 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 0.9% over the last 30 days.
e.l.f. Beauty Inc.
Zacks Rank #1 e.l.f. Beauty’s diversified portfolio, led by rhode, Naturium and e.l.f. SKIN, provides multiple avenues for growth across brands, categories and geographies. Strong international momentum, expanding skincare penetration and ELF’s value-led innovation are supporting market share gains, while the raised fiscal 2027 sales outlook reflects confidence in continued portfolio momentum.
rhode offers significant global runway through broader retail distribution, while e.l.f. SKIN and Naturium have substantial room to expand their presence in skincare. Continued product innovation, retail expansion and geographic growth could strengthen ELF’s competitive position and sustain sales growth.
e.l.f. Beauty has an expected revenue and earnings growth rate of 20.3% and 16.1%, respectively, for the current year (ending March 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 0.6% over the last 30 days.
View the Zacks #1 Rank List
Image: Bigstock
Buy 5 High-Flying Consumer Staples Stocks for a Stable Portfolio in Q4
Key Takeaways
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 in 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 10.8%.
At this stage, we recommend buying five consumer staples bigwigs with a favorable Zacks Rank that have provided more than 20% returns year to date. These are: The Coca-Cola Co. (KO - Free Report) , Altria Group Inc. (MO - Free Report) , Lamb Weston Holdings Inc. (LW - Free Report) , The J. M. Smucker Co. (SJM - Free Report) and e.l.f. Beauty Inc. (ELF - 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.
Image Source: Zacks Investment Research
The Coca-Cola Co.
Zacks Rank #2 Coca-Cola’s growth story is supported by its broad portfolio, global scale and disciplined execution. These strengths drive resilient growth, share gains and margin expansion. Innovation is central to KO, with products, new formats and campaigns expanding consumption occasions and reinforcing brand relevance.
KO’s digital tools, advanced analytics and AI are improving forecasting, pricing, customer engagement and bottling-system execution, supporting productivity and organic growth. KO raised its 2026 outlook, reflecting confidence in the company’s resilient model, operating leverage and long-term earnings potential.
Coca-Cola has an expected revenue and earnings growth rate of 4% and 10%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.3% over the last seven days.
Altria Group Inc.
Zacks Rank #2 Altria Group continues to benefit from strong pricing execution, expanding on! PLUS distribution and disciplined cost management, helping offset cigarette volume declines and preserve earnings resilience.
Smokeable pricing, margin expansion and strong free cash flow reinforce MO’s financial strength. MO’s growing nicotine pouch platform, broader smoke-free investments and shareholder-return strategy, including dividends and buybacks, further support growth.
Altria Group has an expected revenue and earnings growth rate of 2.1% and 4.6%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has remained the same over the last 60 days.
Lamb Weston Holdings Inc.
Zacks Rank #1 Lamb Weston continues to strengthen its business through sustained customer gains, operational improvements and disciplined spending. LW’s expanding relationships with major restaurant chains and continued product innovation provide a foundation for long-term growth. LW’s Focus to Win strategy is helping simplify operations, improve manufacturing efficiency and deliver lasting cost savings.
Industry capacity rationalization also supports better utilization and a more balanced supply setup. LW’s continued innovation across foodservice and retail reinforces product differentiation and customer loyalty.
Although restaurant demand remains subdued and International operations face challenges, ongoing optimization efforts should support gradual earnings recovery. LW’s healthy cash generation and disciplined capital allocation further support shareholder returns.
Lamb Weston has an expected revenue and earnings growth rate of -0.8% and 6.3%, respectively, for the current year (ending May 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 1% over the last seven days.
The J. M. Smucker Co.
Zacks Rank #2 J. M. Smucker benefits from a portfolio of established brands, led by Uncrustables, Cafe Bustelo, coffee and pet foods, with room to expand distribution, household penetration and usage occasions.
SJM’s increased capacity, broader channel reach and product innovation support long-term growth, while healthy cash generation and debt reduction improve financial flexibility. Lower green coffee costs also support SJM’s profitability as pricing adjusts.
J. M. Smucker has an expected revenue and earnings growth rate of -1.4% and 17.1%, respectively, for the current year (ending April 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 0.9% over the last 30 days.
e.l.f. Beauty Inc.
Zacks Rank #1 e.l.f. Beauty’s diversified portfolio, led by rhode, Naturium and e.l.f. SKIN, provides multiple avenues for growth across brands, categories and geographies. Strong international momentum, expanding skincare penetration and ELF’s value-led innovation are supporting market share gains, while the raised fiscal 2027 sales outlook reflects confidence in continued portfolio momentum.
rhode offers significant global runway through broader retail distribution, while e.l.f. SKIN and Naturium have substantial room to expand their presence in skincare. Continued product innovation, retail expansion and geographic growth could strengthen ELF’s competitive position and sustain sales growth.
e.l.f. Beauty has an expected revenue and earnings growth rate of 20.3% and 16.1%, respectively, for the current year (ending March 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 0.6% over the last 30 days.