Betting on the best consumer stocks to buy in April isn’t a pointless endeavor. Consumer stocks have proven to be bastions of stability over time, promising steady portfolio growth along with healthy shareholder rewards.
The Consumer Staples Select Sector SPDR Fund ETF has trailed the S&P 500’s AI-led gains in the past year. Nevertheless, its stability and healthy dividend payouts offer investors a refuge. Therefore, it’s imperative to have a balanced approach that effectively marginalizes risk while capitalizing on potential rewards. With that said, here are three consumer stocks you’d want to bet on in April.
Procter & Gamble (PG)
Consumer products giant Procter & Gamble (NYSE:PG) has been a top inflation-resistant pick and one of the most rewarding investments over the years. It boasts a portfolio of iconic brands under its umbrella, including Tide and Gillette, to name a few, with operations in over 180 countries. Its expertise in efficiently tackling economic downturns through its essential product lines and pricing power positions it as a juggernaut in the consumer goods space.
It recently raised its annual dividend payment for the 67th consecutive year, a testament to the quality of its business. Recent quarterly results have been encouraging, with its pricing power effectively making up for the drop in sales volume.
Its second quarter (Q2) fiscal 2024 report showed organic sales jumping 3% to 4% on a year-over-year (YOY) basis, driven by strategic price increases. Despite operating in a high inflationary environment, its quarterly EPS rose 16% from $1.59 to $1.84, surpassing analyst predictions by 14 cents. P&G also maintained its 4% to 5% organic sales growth forecast for the year while upgrading its EPS growth outlook to 8% to 9%.
Vita Coco Company (COCO)
Vita Coco Company (NASDAQ:COCO) is a top beverage player that emerges as an underappreciated consumer stock pick. With a dominant position in the coconut water niche, Vita Coco has more than a 50% market share. Moreover, through a key partnership with Diageo, it’s looking to spread its tentacles into the evolving alcoholic beverage market through spiked coconut water varieties, which sets it apart from its competition in the energy and sports drinks industry.
COCO impressed everyone with its rock-solid performances in the past few quarters. Having bested top-and-bottom-line estimates in four of the past five quarters, it posted another banger in Q4. EPS for the quarter came in at 11 cents, beating estimates by four cents. Moreover, its revenues shot up 15.4% YOY to $106.2 million, beating estimates by almost $7 million.
Tipranks’ analysts concur over its robust growth runway ahead, assigning a ‘strong buy’ rating while forecasting a superb 20% upside from current price levels.
Archer Daniels Midland (ADM)
Archer Daniels Midland (NYSE:ADM) is a true titan in food processing and commodities trading, critical to the global food supply chain. With its diverse business portfolio and integrated value chain, it’s been one of the most consistent businesses in its sector.
However, ADM stock dipped over 20% last year because of margin declines across different segments and an accounting investigation impacting its nutrition segment.
Despite the headwinds impacting ADM stock’s short to mid-term stock performance, it remains in an excellent position for a rebound once the headwinds clear out. The company is still generating solid profits, and ethanol margins remain elevated, which points to an encouraging outlook. Moreover, its dividend portfolio remains as attractive as ever, yielding more than 3%, with 30 consecutive years of payout expansion. Also, with its current challenges, ADM stock trades at just 0.4 times forward sales estimates, 72% lower than the sector median.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
