3 Consumer Staples Stock To Buy [Or Avoid] Right Now
The stock market has been a challenging place for investors thus far this year. From the rising fear of inflation to the Russian invasion of Ukraine, there are numerous factors that weigh on investor sentiments. As a result, consumer staples stocks have been gaining attention. Well, the sector comprises companies that provide items and services that are deemed essential for everyday use. This includes household goods, food, beverages, and many other necessities. Therefore, companies within the industry are likely to remain stable regardless of the state of the economy.
In the modern world, telecommunication services have become a necessity. Yesterday, reports said Verizon (NYSE: VZ) will be joining AT&T (NYSE: T) in raising wireless prices. Millions of consumers will have to pay a $1.35 increase in administrative charges for each voice line starting in June. Given the importance of connectivity, it is unlikely that consumers will stop using these services.
Elsewhere, Home Depot (NYSE: HD) just announced its strongest ever first-quarter sales on record. Its total sales for the quarter were $38.9 billion while its net earnings were $4.2 billion or $4.09 per diluted share. The solid performance is even more impressive when you consider its historic growth last year. Overall, it makes sense for investors to pay more attention to top consumer staples stocks right now. With that said, here are some of the top names to put on your radar in the stock market today.
Consumer Staples Stock To Buy [Or Sell] Now
T-Mobile is one of the largest mobile communication providers in the world. The company delivers an advanced 4G LTE and transformative nationwide 5G network that offers reliable connectivity. Besides that, it also offers a selection of wireless devices that includes handsets, tablets, and various mobile accessories. Thus, the company’s customers can benefit from its unmatched combination of value and quality. Despite trading sideways since the start of the year, TMUS stock has still climbed by more than 10% within the period.
Earlier this month, T-Mobile and Cradlepoint announced a partnership to deliver an enterprise-grade custom-designed all-in-one 5G router. This new solution will combine Cradlepoint’s custom-designed E320 5G router and NetCloud Service with T-Mobile’s nationwide 5G footprint. Specifically, this will cater to T-Mobile Business Internet customers. Both companies believe that together, they can deliver a compelling fixed wireless solution tailored to organizations that depend on fast and secure internet for their business operations.
Financially, T-Mobile has also made several meaningful strides to start the fiscal year 2022. During its first quarter, the company’s services revenue grew to $15.1 billion, up 7% year-over-year. Also, the company reported a strong net income of $713 million and diluted earnings per share of $0.57. Besides that, T-Mobile announced an additional 1.3 million postpaid net customers. This is the highest first-quarter figure over the past eight years. Considering these encouraging developments, would you add TMUS stock to your portfolio?
Another top consumer staples company worth noting is Tyson Foods. This is a company that built its name on providing families with wholesome and great-tasting protein products. Its segments include Beef, Pork, Chicken, and Prepared Foods. Not only does it have some of the fastest-growing portfolio of protein-centric brands, but Tyson also prides itself on offering great transparency in everything it does. As such, it should not be surprising that TSN stock often comes to mind when investors are looking for top consumer staples stocks to buy.
Last week, Tyson Foods provided its second-quarter financial updates. The company’s total sales for the quarter were $13.1 billion, representing an increase of 15.9% compared to the prior year’s quarter. Meanwhile, its GAAP earnings per share climbed to $2.28, up 75% year-over-year. These financial figures are a reflection of the increasing consumer demand for its brands and products. To top it off, the company was also able to reduce its total debt by approximately $1 billion.
Donnie King, president and CEO of Tyson Foods, commented, “Although we continue to see inflationary pressures across the supply chain, we are working to drive costs down by continuing to increase our efficiency, productivity, and bringing more capacity on line. This is all part of our strategy to win with customers and consumers, win with team members and win with excellence in execution.” Separately, the company recently announced a partnership with Commute with Enterprise to help its team members address the barriers to transportation. This is a growing ride-share program that provides a low-cost way to commute to work. All things considered, would you bank on the future of TSN stock?
Last but not least, we have another food company in Bunge. In detail, the company operates through four segments, Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. The company boasts a diverse and talented team that focuses on being the most innovative and dynamic company in its industry. In fact, Bunge is one of the founding members of Together We Grow, an industry association that aims to build a diverse and inclusive workforce in the U.S. Impressively, BG stock has risen more than 20% since the start of the year.
In April, Bunge reported stronger-than-expected first-quarter earnings and several positive developments. The company’s quarterly GAAP adjusted net income per diluted share was $4.26 versus $3.13 in the prior year’s quarter. Its Agribusiness continues to impress as it adapts to the rapidly changing market conditions while connecting farmers to global consumers. Also, its Refined and Specialty Oils appear to be benefiting from favorable demand trends and supply chain capabilities. In light of all this, the company is increasing its full-year adjusted EPS outlook to at least $11.50.
On top of that, Bunge North America and Chevron U.S.A (NYSE: CVX) also recently announced the creation of Bunge Chevron Ag Renewables LLC. The new company will develop renewable fuel feedstocks that leverage Bunge’s expertise in oilseed processing and farmer relationships. It would also pursue new growth opportunities in lower carbon intensity feedstock and consider feedstock pretreatment investments. All in all, there appear to be plenty of positives around the consumer giant right now. With that in mind, would you consider BG stock to be a viable investment right now?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.