1 Consumer Stock to Own for Decades and 2 to Keep Off Your Radar
Consumer staples stocks are solid insurance policies in frothy markets ripe for corrections. Surprisingly, the sector hasn't played its shielding role over the past six months as it tumbled 14.1%. This drop was much worse than the S&P 500's 1.8% decline.
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. On that note, here is one consumer stock boasting a durable advantage and two that may face trouble.
Market Cap: $16.88 billion
Best known for its SPAM brand, Hormel (NYSE:HRL) is a packaged foods company with products that span meat, poultry, shelf-stable foods, and spreads.
Why Do We Think Twice About HRL?
Shrinking unit sales over the past two years show it's struggled to move its products and had to rely on price increases
Easily substituted products (and therefore stiff competition) result in an inferior gross margin of 16.7% that must be offset through higher volumes
Sales were less profitable over the last three years as its earnings per share fell by 6.5% annually, worse than its revenue declines
Hormel Foods's stock price of $30.70 implies a valuation ratio of 17.7x forward P/E. Check out our free in-depth research report to learn more about why HRL doesn't pass our bar.
Market Cap: $1.59 billion
Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE:FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables.
Why Do We Steer Clear of FDP?
Sales were flat over the last three years, indicating it's failed to expand its business
Gross margin of 8.2% is an output of its commoditized products
Low returns on capital reflect management's struggle to allocate funds effectively
Fresh Del Monte Produce is trading at $33.13 per share, or 8.2x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than FDP.
Market Cap: $7.89 billion
Spun out of Post Holdings in 2019, Bellring Brands (NYSE:BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands.
Why Are We Bullish on BRBR?
Stellar 20.8% growth in unit sales over the past two years demonstrates the high demand for its products
Earnings growth has trumped its peers over the last three years as its EPS has compounded at 28% annually
ROIC punches in at 48.9%, illustrating management's expertise in identifying profitable investments
At $62.15 per share, BellRing Brands trades at 26.1x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it's free.
Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.
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