We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
3 Low-Beta Consumer Staple Stocks to Buy as Inflation Stays Elevated
Read MoreHide Full Article
Key Takeaways
Lamb Weston benefits from 7.6% expected earnings growth, a 0.49 beta and a 2.66% dividend yield.
J. M. Smucker projects 17.1% earnings growth, with a 0.26 beta and a 3.35% dividend yield.
Altria is expanding its smokeless category, with 5.2% expected earnings growth and a 5.82% yield.
Higher prices of goods and services have been creating pressure on consumers, impacting the broader economy. Inflation rose more than expected in October, giving the Federal Reserve ample reason to go for another rate hike before the end of this year.
Wall Street has been feeling the heat lately, as investors continue to rotate out of AI-related tech stocks on fears that the Democrats’ win in the U.S. midterm election could lead to a slowdown in spending on data centers.
Given this situation, it would be wise to buy defensive stocks from the consumer staples sector, namely Lamb Weston Holdings, Inc.(LW - Free Report) , The J. M. Smucker Company (SJM - Free Report) and Altria Group, Inc. (MO - Free Report) .
Inflation Rises Further
The Commerce Department reported earlier this week that the consumer price index (CPI) rose 0.4% sequentially in October, after increasing 0.6% the prior month and above the consensus estimate of 0.3%. Core CPI, which strips out volatile food and energy, rose 0.3%, above analysts’ expectations of 0.2%.
The year-over-year inflation reading was not released, as last year’s government shutdown didn’t allow the collection of CPI data in October 2025.
Inflation has now increased by 0.4% or more for the third straight month. October’s jump was driven by higher costs of food and living. The U.S.-Iran war has been primarily responsible for the steep rise in inflation this year. Oil prices surged after the war broke out at the end of February, pushing up the prices of goods and services.
Although energy costs have somewhat eased, they remain sharply higher than the pre-war levels. Higher oil prices have resulted in a jump in inflation, which has posed a major challenge for the Federal Reserve.
The Federal Reserve raised interest rates by a quarter percentage point in September and the October inflation reading strongly suggests that the central bank might go for yet another rate hike.
Also, markets are suffering lately, with AI-related stocks taking a beating. The rising costs of food and accommodation contributed to Republicans’ loss in the midterm elections. Investors now fear that the Democrats could crack down on the heavy spending on AI infrastructure and data centers. The weak investor sentiment could further weigh on the broader market.
3 Low-Beta Consumer Staples Stocks With Upside
Lamb Weston Holdings
Lamb Weston Holdings is a leading global manufacturer, marketer and distributor of value-added frozen potato products, particularly French fries, and provides a range of appetizers. LW, along with its joint venture allies, is the top frozen potato products supplier in North America, while it also operates internationally, with a robust and growing presence in emerging markets.
Lamb Weston’s expected earnings growth rate for the current year is 7.6%. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the past 60 days. Lamb Weston has a beta of 0.49 and a current dividend yield of 2.66%. LW currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The J. M. Smucker Company
The J. M. Smucker Company is a leading marketer and manufacturer of consumer food and beverage products and pet food and pet snacks in North America. SJM boasts a strong portfolio of iconic food and beverages. The J. M. Smucker Company mainly caters to coffee, pet food, peanut butter, fruit spreads, baking products, ready-to-spread frostings, frozen sandwiches, flour, juices and beverages, and portion control products.
The J. M. Smucker Company has an expected earnings growth rate of 17.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.8% over the last 60 days. SJM currently has a Zacks Rank #2 (Buy). The J. M. Smucker Company has a beta of 0.26 and a current dividend yield of 3.35%.
Altria Group
Altria Group has been evolving with the changing industry dynamics. Given the rising health consciousness and stern government regulations to discourage smoking, MO has been moving beyond traditional cigarettes and expanding in the smokeless category.
Altria Group’sexpected earnings growth rate for the current year is 5.2%. The Zacks Consensus Estimate for its current-year earnings has improved 0.5% over the past 60 days. MO currently has a Zacks Rank #2. Altria Group has a beta of 0.43 and a current dividend yield of 5.82%.
View the Zacks #1 Rank List
Image: Bigstock
3 Low-Beta Consumer Staple Stocks to Buy as Inflation Stays Elevated
Key Takeaways
Higher prices of goods and services have been creating pressure on consumers, impacting the broader economy. Inflation rose more than expected in October, giving the Federal Reserve ample reason to go for another rate hike before the end of this year.
Wall Street has been feeling the heat lately, as investors continue to rotate out of AI-related tech stocks on fears that the Democrats’ win in the U.S. midterm election could lead to a slowdown in spending on data centers.
Given this situation, it would be wise to buy defensive stocks from the consumer staples sector, namely Lamb Weston Holdings, Inc.(LW - Free Report) , The J. M. Smucker Company (SJM - Free Report) and Altria Group, Inc. (MO - Free Report) .
Inflation Rises Further
The Commerce Department reported earlier this week that the consumer price index (CPI) rose 0.4% sequentially in October, after increasing 0.6% the prior month and above the consensus estimate of 0.3%. Core CPI, which strips out volatile food and energy, rose 0.3%, above analysts’ expectations of 0.2%.
The year-over-year inflation reading was not released, as last year’s government shutdown didn’t allow the collection of CPI data in October 2025.
Inflation has now increased by 0.4% or more for the third straight month. October’s jump was driven by higher costs of food and living. The U.S.-Iran war has been primarily responsible for the steep rise in inflation this year. Oil prices surged after the war broke out at the end of February, pushing up the prices of goods and services.
Although energy costs have somewhat eased, they remain sharply higher than the pre-war levels. Higher oil prices have resulted in a jump in inflation, which has posed a major challenge for the Federal Reserve.
The Federal Reserve raised interest rates by a quarter percentage point in September and the October inflation reading strongly suggests that the central bank might go for yet another rate hike.
Also, markets are suffering lately, with AI-related stocks taking a beating. The rising costs of food and accommodation contributed to Republicans’ loss in the midterm elections. Investors now fear that the Democrats could crack down on the heavy spending on AI infrastructure and data centers. The weak investor sentiment could further weigh on the broader market.
3 Low-Beta Consumer Staples Stocks With Upside
Lamb Weston Holdings
Lamb Weston Holdings is a leading global manufacturer, marketer and distributor of value-added frozen potato products, particularly French fries, and provides a range of appetizers. LW, along with its joint venture allies, is the top frozen potato products supplier in North America, while it also operates internationally, with a robust and growing presence in emerging markets.
Lamb Weston’s expected earnings growth rate for the current year is 7.6%. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the past 60 days. Lamb Weston has a beta of 0.49 and a current dividend yield of 2.66%. LW currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The J. M. Smucker Company
The J. M. Smucker Company is a leading marketer and manufacturer of consumer food and beverage products and pet food and pet snacks in North America. SJM boasts a strong portfolio of iconic food and beverages. The J. M. Smucker Company mainly caters to coffee, pet food, peanut butter, fruit spreads, baking products, ready-to-spread frostings, frozen sandwiches, flour, juices and beverages, and portion control products.
The J. M. Smucker Company has an expected earnings growth rate of 17.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.8% over the last 60 days. SJM currently has a Zacks Rank #2 (Buy). The J. M. Smucker Company has a beta of 0.26 and a current dividend yield of 3.35%.
Altria Group
Altria Group has been evolving with the changing industry dynamics. Given the rising health consciousness and stern government regulations to discourage smoking, MO has been moving beyond traditional cigarettes and expanding in the smokeless category.
Altria Group’sexpected earnings growth rate for the current year is 5.2%. The Zacks Consensus Estimate for its current-year earnings has improved 0.5% over the past 60 days. MO currently has a Zacks Rank #2. Altria Group has a beta of 0.43 and a current dividend yield of 5.82%.