As the coronavirus pandemic ebbs in the U.S., spring is transitioning into summer for much of the country and that means getting outdoors. This leads us to some promising opportunities for stocks to buy.
Given the fact that most people have avoided any place where people gather for communal activities for the better part of a year, the consumer stocks that cater to the friends and family gatherings that we’re all used to, are going to be as hot as the Fourth of July in Georgia.
The seven consumer stocks ready for picnic season here are companies that are focused on their particular niche, whether that’s beverages, summer wear or some type of food product. These are all small- to mid-cap firms that are perfectly suited to grow fast in an expanding economy, especially one that has been deprived of group gatherings for such a long time.
Nibble on a few of these stocks to buy rather than gorging on just one:
- Celsius Holdings (NASDAQ:CELH)
- Crocs (NASDAQ:CROX)
- National Beverage Corp (NASDAQ:FIZZ)
- Boston Beer Co (NYSE:SAM)
- Nomad Foods (NYSE:NOMD)
- Flowers Foods (NYSE:FLO)
- Under Armour (NYSE:UA, NYSE:UAA)
Consumer Stocks to Buy: Celsius Holdings (CELH)
One category that continues to draw more players is the healthy soft drink market. It seems like there’s no end to the performance waters and other drinks that continue to launch.
But there’s a reason for this. More Americans are realizing that sugary, high-calorie soft drinks aren’t a food group. And as they transition from consuming traditional soft drinks to new options, there’s a huge opportunity for new brands to show up and either make it big on their own, or get acquired by a major beverage producer.
CELH is one of those consumer stocks that is moving in the right direction. Launched in 2004, it focuses on healthy flavored, non-carbonated performance water drinks that have science to back up its claims.
And in recent years, it has made the big time, with distribution into the world’s largest grocery store and the world’s largest retailer, along with other major U.S. sports retailers, grocers and pharmacies.
CELH stock is in its growth phase now, so it’s more about expanding its market than it is about market valuations. CELH stock is up 15% year to date after a huge run in the past year.
It rates an ‘A’ in my Portfolio Grader.
Crocs (CROX)
When CROX launched nearly two decades ago, it was one of those cool ideas that many people saw as a “one-and-done” kind of concept. Sure, its products were funky, affordable and really comfortable. And they were light, as well as durable.
What I’m saying is, it was easy to underestimate how much people would come to love these funky, injection molded shoes.
Since those early fad-driven days, CROX have become well loved all around the world, with new generations of people wearing them. In that time, CROX has expanded its lines of shoes and accessories, but has maintained its focus while expanding its audience … and fan base.
Today, the company sports a $6 billion market cap. And while it’s up 60% year to date, CROX only trades at a price-to-earnings ratio of 17x, well below the S&P 500 average.
It rates an ‘A’ in my Portfolio Grader.
Consumer Stocks to Buy: National Beverage Corp (FIZZ)
Like CELH, FIZZ is expanding its brands into the traditional soda alternative market. And no, it’s not doing that with its sexy name. It has a number of brands that it has acquired or launched since its launch in 1985.
It has more than three decades navigating the soft drink market and it has done a good job during that time. It really struck gold when its La Croix water brand went viral a couple years ago. And it has used that success to build up its other brands and establish shelf space in the best consumers store in the U.S.
At this point, FIZZ is one of the consumer stocks in this sector that is sure to endure. And it keeps its business focused, so even with its $4 billion market cap it knows where the trends are and how to take advantage. The stock is up 15% year to date after a big run in 2020, but it’s still reasonably priced for its potential.
It rates an ‘A’ in my Portfolio Grader.
Boston Beer Co (SAM)
I love the origin story for this company. Founder Jim Koch, straight out of graduate business school went to his uncle — a Wall Street player — with plans to start a brewery. He had the brewery costs, office space, personnel spreadsheets, the works.
His uncle asked him, “How many customers do you have?” Kock said, “None.” His uncle advised him to go get the customers. So Koch brewed some beer and bottled it and went door-to-door to bars with bottles in his briefcase.
Now SAM has a $15 billion market cap and is one of the most visible small batch brews out there. Although there admittedly has been some debate of whether it has left the orbit of smaller brewers. But even if it has, it’s a testament to the philosophy of craft brewers everywhere.
SAM hasn’t been sleeping during the pandemic, but there’s little doubt volume should expand as picnics, concerts and other outdoor events begin to bloom. SAM stock is up 29% year to date.
It rates a ‘B’ in my Portfolio Grader.
Consumer Stocks to Buy: Nomad Foods (NOMD)
If you’re looking for an alternative to the “same old” choices that are offered up as consumer stocks, then NOMD may be just for you.
It’s not a funky alternative for the new RV set as the name implies. It’s actually a U.K.-based frozen food company that operates under some of the most well-known (and loved) frozen food brands in Europe.
It operates under seven major brands that all have their select markets in the U.K., Ireland and the European continent. The one we’re most familiar with in the U.S. is Birds Eye, which was a U.S. brand first launched by frozen food pioneer Clarence Birdseye.
Given the waves of lockdowns in Europe during the worst days of the pandemic, NOMD has been doing well. It’s a steady growth stock — up nearly 15% year to date — but it helps diversify your consumer goods portfolio with a non-U.S. choice.
It rates a ‘B’ in my Portfolio Grader.
Flowers Foods (FLO)
This is another one of those holding companies with a generic name that doesn’t mean much until you know the brands it has. Also, you would think you might have heard of it at some point, given it has been around for 102 years.
Today it has 47 bakeries around the U.S. and produces niche, beloved brands like Dave’s Killer Bread, Tastykake, Wonder, Sunbeam, Captain John Derst’s and others, including Mi Casa tortillas.
By sticking with niche brands that have built reputations in various regions of the country and sticking to unique features of the brands, FLO remains one of the most durable consumer stocks out there.
FLO stock is up 5% year to date and delivers a very solid and respectable 3.3% dividend.
It rates a ‘B’ in my Portfolio Grader.
Consumer Stocks to Buy: Under Armour (UA)
Back around 2010 and for the next five or six years, UA was a juggernaut in the sports apparel side of consumer stocks. It grew rapidly in the U.S. and then began to eat up market share around the globe, eating the lunch of most of the other major sporting goods labels.
The trouble was, while its growth story was keeping the imagination of investors going, at some point, the company that launched in 1996, and went public in 2005, had to start to mature and establish a base and consolidate its brand. But a slowing economy hit some of its big retailers and moving into sports where it didn’t have core competencies hit the company hard.
The C shares here (there are A shares as well) launched in 2016 at the tail end of the mess. It’s still not back to its glory days, but where it is currently is more realistic as it has gone back to a more focused strategy in the products and sports. That’s where it can really make a difference. UA stock is up 32% year to date and has room to grow.
It rates a ‘B’ in my Portfolio Grader.
On the date of publication, Louis Navellier has positions in CELH, CROX, and SAM in this article. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
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