Regarded as defensive investments, consumer staples stocks are generally safe bets in choppy markets. On the other hand, they usually underperform during bull runs, and this paradigm has rung true over the past six months as the sector’s -6.8% decline paled in comparison to the S&P 500’s 11.7% gain.
Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. On that note, here are two resilient consumer stocks we’ve added to our cart and one we’re steering clear of.
One Consumer Staples Stock to Sell:
J. M. Smucker (SJM)
Market Cap: $12.74 billion
Best known for its fruit jams and spreads, J.M Smucker (NYSE: SJM) is a packaged foods company whose products span from peanut butter and coffee to pet food.
Why Is SJM Risky?
- Falling unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Forecasted revenue decline of 3.2% for the upcoming 12 months implies demand will fall off a cliff
- Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its shrinking returns suggest its past profit sources are losing steam
J. M. Smucker is trading at $119.88 per share, or 11.9x forward P/E. Check out our free in-depth research report to learn more about why SJM doesn’t pass our bar.
Two Consumer Staples Stocks to Watch:
Hershey (HSY)
Market Cap: $36.08 billion
Best known for its milk chocolate bar and Hershey's Kisses, Hershey (NYSE: HSY) is an iconic company known for its chocolate products.
Why Do We Like HSY?
- Disciplined cost controls and effective management resulted in a strong two-year operating margin of 18.2%
- HSY is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Hershey’s stock price of $180.00 implies a valuation ratio of 19.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Monster (MNST)
Market Cap: $92.38 billion
Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ: MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.
Why Will MNST Outperform?
- Excellent operating margin of 28.4% highlights the efficiency of its business model, and its rise over the last year was fueled by some leverage on its fixed costs
- Robust free cash flow margin of 23.8% gives it many options for capital deployment
- Industry-leading 36.1% return on capital demonstrates management’s skill in finding high-return investments, and its returns are climbing as it finds even more attractive growth opportunities
At $94.55 per share, Monster trades at 40x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
