Investing in consumer staples stocks are essential for investors during strong economic times, especially during a shift into economic stagnation. They provide investors with a strong base that isn’t wildly affected by investor selloffs.
On Aug. 5, Japan’s Nikkei 225 Index fell over 13%, shocking the global market. Consumer staples stocks were not nearly as affected as other industries such as tech, healthcare, and financials.
Some consumer staples stocks provide investors with a safety net and a challenging economic outlook. These companies have reported impressive share price appreciation over this past year and offer stunning potential for investors.
Sprouts Farmers Market (SFM)
Sprouts Farmers Market (NASDAQ:SFM) is a food retail chain that sells fresh, natural, and organic food products such as dairy, meat, supplements, perishables, frozen food, beverages, and bulk items. Over the past year, its share price increased by 147%, making it one of the best-performing consumer staples stocks due to its strong earnings and consistent opening of new stores.
On July 29, SFM reported earnings for Q2 2024, stating that total revenue increased by 12% and net income by 42%. It opened five new stores within the second quarter. Recently, its Board of Directors approved a $600 million share repurchase plan, replacing its previous plan.
Sprouts announced it would be raising its full-year 2024 outlook. Net sales are expected to rise by 9% to 10%, and adjusted earnings per share are expected to be $3.29 to $3.37.
Since the second-quarter earnings report, when SFM beat analyst predictions, its share price has risen by 12%.
Sprouts Farmers Market is a safe bet for investors, especially during an economic downturn, due to its strong financial position and consistent growth in new store locations.
Costco Wholesale (COST)
Costco Wholesale (NASDAQ:COST) is a globally operating warehouse membership company that offers a wide range of products such as groceries, furniture, electronics, sporting goods, and housewares. It also provides gasoline, pharmacies, optical centers, and automotive centers.
Over the past year, COST shares have risen by 47%, partly due to increased sales growth and increased membership fees.
On May 30, Costco reported its earnings for the third quarter of fiscal year 2024, stating that total revenue increased by 9% and net income rose by 29%.
For the month of June, sales were up by 7.4% to $24.48 billion compared to June of last year. The raised membership fees will go into place on Sept. 1. This includes a 5-dollar increase to annual memberships; executive memberships will increase from $120 per year to $130.
Costco beat analyst expectations for its Q3 FY 2024 results, and its increased membership fees have investors excited to see how this will affect COST in the future. It is a strong company to hold during difficult economic times that will continue to have consistent growth potential.
Casey’s General Stores (CASY)
Casey’s General Stores (NASDAQ:CASY) operates convenience store locations throughout the Central United States. It offers breakfast items, sandwiches, beverages, snacks, and pizza.
On June 11, Casey’s reported earnings for the fourth quarter of fiscal year 2024, which stated that total revenue increased by 8% and net income rose by 55%. Throughout the fiscal year of 2024, Casey’s announced that it built or acquired 154 convenience store locations.
It beat analysts’ earnings predictions and announced a 16% increase in its dividend to fifty cents per share.
On July 26, CASY’s reported that it acquired Fike’s Wholesale, which operates a convenience store chain known as CEFCO, in an all-cash transaction valued at $1.145 billion. This deal will result in 198 new store locations for Casey’s and increase its footprint primarily in Texas and other Southern States.
Casey’s General Stores is quickly growing, primarily in the Southern market. It is providing numerous reasons why investors should seek investment in the stock. It offers very strong growth potential. And its share price could continue to grow after increasing by 51% over this past year.
As of this writing, Noah Bolton did not hold (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.
On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.
