On Wall Street, question marks over the health of the economy have increased as many sectors struggle to maintain stability. However, consumer stocks — especially those related to essential goods — often exhibit resilience during such volatility. Companies that provide everyday products, such as food and beverages, are particularly well-positioned to weather economic downturns.

For instance, since January, the S&P 500 Consumer Staples index has gained over 11%. Many of these consumer stocks have gained as the companies have adapted to changing consumer behaviors. They have also leveraged their strong brands and maintained operational efficiency to deliver consistent financial performance.

This article will examine three consumer stocks that are not only surviving but thriving despite the current economic challenges. We believe they will likely enjoy continued growth through strategic initiatives and strong financial performance for the rest of 2024.

Coca-Cola (KO)

We start our discussion on consumer stocks with the beverage icon Coca-Cola (NYSE:KO). While the company is best known for its flagship Coca-Cola beverage, its product line extends far beyond sodas to include juices, sports drinks, water and even coffee. This diversity in offerings has allowed Coca-Cola to remain a dominant force in the consumer sector worldwide.

One of the key reasons Coca-Cola continues to thrive, even in uncertain economic times, is its strong brand loyalty. Thus, despite the challenges posed by inflation and supply chain disruptions, Coca-Cola has generally reported strong financial performance. Similarly, in its most recent quarterly earnings, the company beat analyst expectations.

The consumer group enjoyed a 7% growth in comparable earnings per share despite facing headwinds. It achieved volume growth, strong organic revenue growth and margin expansion while continuing to invest in its business. Management cited higher-than-anticipated demand for its products across various categories.

In addition, Coca-Cola expects organic revenue growth of 9% to 10% and comparable currency-neutral earnings per share growth of 13% to 15% for 2024. Coca-Cola’s ability to pass on higher costs to consumers without significantly impacting demand is a testament to its pricing power and brand strength.

So far in 2024, KO shares have advanced over 17% and offer a dividend yield of 2.82%. Its forward price-to-earnings (P/E) ratio currently stands at 23.2x. Meanwhile, several other valuation metrics suggest Coca-Cola could be slightly overvalued compared to its peers. Therefore, investors interested in this consumer stock may want to wait for a pullback toward the $65 level.

Conagra Brands (CAG)

Next up on our list of consumer stocks is Conagra Brands (NYSE:CAG). As a leading provider of packaged foods, Conagra’s products are found in millions of households stateside. The company’s diverse portfolio includes well-known brands such as Healthy Choice, Marie Callender’s, Hunt’s and Orville Redenbacher’s, among others.

Conagra focuses on providing relatively affordable and convenient food products that appeal to a wide range of consumers. In times of economic uncertainty, consumers often turn to packaged foods as a cost-effective alternative to dining out. This shift in consumer behavior has benefited the consumer company as well as CAG stock. Conagra has also expanded its product offerings to include healthier options, such as plant-based and organic products. Management’s focus on frozen and packaged foods, which offer convenience and longer shelf life, also resonates well with consumers.

As a result, Conagra’s financial performance has been solid, with the company consistently delivering strong earnings. According to its most recent earnings report, Conagra demonstrated progress during fiscal year 2024 despite a challenging consumer environment. The consumer company reported sequential volume improvement in its domestic retail business and strengthened market share in frozen and snacks.

The company’s ability to manage rising input costs and supply chain challenges has also been helpful. Looking ahead to fiscal year 2025, Conagra Brands expects the consumer environment to remain challenging but gradually transition towards a more normalized operating environment.

Year-to-date (YTD), CAG stock has advanced over 5.0% and currently offers a dividend yield of 4.64%. Its forward P/E ratio of 11.5x, as well as several other valuation metrics, suggest CAG shares still offer value compared to peers. Interested readers may consider buying the dips in Conagra stock.

Sysco (SYY)

The final pick among our consumer stocks is Sysco (NYSE:SYY), one of the largest food service distribution companies worldwide. It supplies food and related products to restaurants, healthcare facilities, schools and other institutions.

Sysco’s ability to thrive in uncertain economic times can be attributed to its operational adaptability. For example, during the COVID-19 pandemic, Sysco rapidly adjusted its operations to support the surge in demand from grocery stores and healthcare facilities. Understandably, Sysco’s scale and extensive distribution network provide a significant competitive advantage. As a result, management can also negotiate favorable pricing with suppliers, which it can then pass on to its customers.

Consequently, Sysco’s financial performance has remained robust, even in the face of economic challenges. The company has recently reported strong earnings, driven by higher sales volumes and effective cost management.

Management announced $79 billion in top-line revenue for fiscal year 2024, a growth of 3.3% compared to the prior year. For fiscal year 2025, the consumer company is guiding for 4% to 6% net sales growth and 6% to 8% adjusted EPS growth.

SYY stock has advanced 3.6% YTD, supported by a current dividend yield of 2.7%. Meanwhile, its forward P/E ratio stands at 16.3x. Finally, Wall Street remains optimistic about SYY shares with a price target that suggests a potential up-move of 13.0%.

On the date of publication, Tezcan Gecgil 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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.