3 staple consumer stocks to check out this week
Consumer staples stocks are among the most popular investments in the stock market. For the uninitiated, consumer staples companies produce essential goods and services that are consumed daily, such as food, beverages, household products, and personal care items. These companies tend to be less volatile than other market sectors and provide investors with a steady stream of dividend income. For example, some of the most popular consumer staple names in the stock market today are like Walmart Inc. (NYSE: WMT), and Proctor & Gamble Company (NYSE:PG)
Additionally, consumer staples stocks are often less affected by economic downturns than other sectors, making them a relatively safe investment choice. For these reasons, consumer staples stocks can be considered a good addition to any investment portfolio. Given that, here are three top consumer staples stocks to check out in the stock market right now.
Consumer Staples Stocks to Invest In [Or Avoid] Now
Kroger Company (KR Shares)
First of all, The Kroger Company (KR) is one of the largest grocery retailers in the United States. Kroger operates 2,765 supermarkets and multi-department stores in 35 states and the District of Columbia. Kroger also owns and operates 36 food processing plants, 1,360 supermarket gas stations and 37 distribution warehouses. Currently, KR shareholders enjoy an annual dividend yield of 2.00%. Additionally, last week the company announced better than expected second quarter 2022 financial results.
Plunging, the company posted earnings per share of $0.90 in Q2 2022, along with revenue of $34.6 billion. This is compared to the consensus earnings estimate of $0.84 per share and revenue estimates of $34.2 billion. Kroger also reported revenue growth of 9.3% over the same period, in 2021. Additionally, the company raised its full-year guidance. In detail, Kroger announced that it now estimates earnings for the year at $3.95 to $4.05 per share, compared to the previous earnings announcement of $3.85 to $3.95 per share. stock.
Chairman and CEO Rodney McMullen commented in his letter to shareholders:Kroger delivered strong results in the second quarter, powered by our Leading with Fresh and Accelerating with Digital strategy. We are extremely grateful to our dedicated associates who continue to provide a complete, fresh and friendly customer experience.“Following this earnings release, KR shares jumped more than 7% last Friday to $51.94 per share. Additionally, Kroger shares are up more than 14% so far in 2022. Given this strong quarter, is now a good time to buy KR shares?
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Albertsons companies (ACI shares)
Next, Albertsons Companies Inc. (ACI) is an American food company. The company operates several grocery store banners, including Albertsons, Safeway, Vons, Jewel-Osco, Randalls, Tom Thumb, Shaw’s and Star Market. In July, the company reported stronger-than-expected first-quarter 2022 financial results.
To cut to the chase, Albertsons Companies Inc reported earnings per share of $0.95 in the first quarter of 2022, along with revenue of $23.3 billion. Meanwhile, Wall Street consensus estimates for the quarter were earnings of $0.87 per share and revenue of $22.6 billion. Additionally, the company saw a 9.6% year-over-year increase in revenue over the same period.
Additionally, CEO Vivek Sankaran said in his note to shareholders:In the first quarter, our teams continued to deliver strong operational and financial performance across all key metrics, and we continued to gain market share. As we look forward to the remainder of the year, as we reflect on the macro environment and possible implications on consumer behavior, our teams have consistently demonstrated their ability to adapt to a changing environment in real time. .“With that, ACI shares have recovered more than 6% in the last week of trading, while closing Friday’s trading session at $29.71 per share. Given that, do you think Is ACI stock worth adding to your list of core consumer stocks to watch now?
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BJ’s Wholesale Club (BJ Stock)
Lately, Big BJ Club (BJ) is a major operator of warehouse clubs in the United States. BJ’s serves its members by providing access to low prices on a wide range of merchandise, including groceries, electronics, housewares, and more. Additionally, last month, BJ’s Wholesale Club announced a beat for its fiscal second quarter 2022 results.
In the report, BJ reported earnings per share of $1.06, with revenue of $5.1 billion. For context, these were better-than-expected consensus estimates of earnings per share of $0.83 and revenue of $4.6 billion. As a result, the company recorded a 22.2% increase in revenue over the same period a year ago. Other than that, BJ’s Wholesale Club said it estimates fiscal 2023 earnings between $3.50 and $3.60 per share. This compares to the company’s previously announced guidance of around $3.25 per share.
Additionally, BJ’s Wholesale Club President and CEO Bob Eddy said, “Our strong second quarter results were led by traffic and market share gains as we continue to deliver tremendous value in virtually every aspect of our business. Our consistent focus on investing in our long-term initiatives has allowed us to capitalize on current trends and deliver this strong performance.“Year-to-date, BJ shares are up more than 20% to close Friday at $78.91 per share. As a result, BJ stock has outperformed the broader market so far in 2022. With that in mind, could BJ stock be a good buy-and-hold for your long-term portfolio?
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