STOCKS TELEGRAPH

Tag: KO Stock

  • The Three Best Consumer Staples Stocks to Buy and Hold

    The Three Best Consumer Staples Stocks to Buy and Hold

    Holding a consumer staple stock is always a good option.

    The consumer staples segment is a wider part of the food industry. Majority of the consumer staples are multinational firms with subsidiaries, meaning they have a long chain of revenues.

    Early in 2020, when the lockdown started to begin, the consumer staples stocks were outperforming—in general. Consumer firms produce different items including household goods, food, hygiene, and other daily life products.

    Consumer staples usually are slow-growth stocks and do not provide the highest earnings growth on annual basis. Investors with a caliber of Warren Buffet much be the right persons to jump into this category. So, let’s have a look three best consumer stocks to buy and hold.

    Coca-Cola (KO)

    The multinational beverages giant, Coca-Cola (KO) is one from the stapes sector—a good investment option. In a phase of uncertain economic circumstances, the company is starting to adapt accordingly.

    Recently, the company reported its fourth-quarter results, which were on the impressive side. Driven by the growth in adjusted operating margin and prudent cost management, Coca-Cola posted better-than-expected.

    The Q4 adjusted earnings were $0.47 per share, which soared over 6.8% year-over-year and crossed Street estimates of $0.42. While the adjusted net operating revenues were on the lower side dropping by 5.5% to $8.6 billion. Most importantly, the company expanded its adjusted operating margin up to 27.35% from the prioryear.

    The company believes that the progress they made in 2020 has set the platform that would pave the way for growth this year. For this reason, Coca-Cola has projected its adjusted EPS to grow in between the high single-digit to low double-digit percentage range. Whereas, the organic revenue is expected to rise in space of high single-digit. The free cash flow is anticipated at $8.5 billion.

    So, Coca-Cola (KO) is well set to follow through this pandemic stream and makes it move for the future.

    Tyson Foods (TSN)

    Tyson Foods (TSN) is one of the largest food operators in the world. The company is the second largest processor and marketer of chicken, beef, and pork after JBS S.A.TSN is also one of those consumer staples stocks that would be a good hold in the long-term.

    Recently, the company released its first quarter 2021 results surpassing Zacks estimates. The earnings were $1.94 per share, beating consensus estimate of $1.58. The Q1 earnings surprise was 22.78%. In the past four quarters, the company surpasses the consensus EPS estimates three times.

    Whereas, Tyson’s Meat Product industry revenues peaked at over $10.46 billion, which missed the Zacks estimates by 5.57%. The impact on revenue is due to unprecedented sales—amid the pandemic. The overall results have been promising over the past year, which shows that the company has much potential in the long run. Another positive is the dividend of Tyson, with a yield of 2.27%, as we write this.

    Reynolds Consumer (REYN)

    Reynolds Consumer (REYN) is the parent company behind Hefty trash bags, disposable tableware, Reynolds-branded parchment paper, and Fresh-Lock zipper bags.

    In Q4, the company reported revenues of $888 million, beating Zacks estimates by 1.21% and up from $835 million year-over-year. Based on the latest results, analysts have raised the yearly outlook for Reynolds. The revenues for this year are projected to cross $3.3 billion, along with statutory earnings of $1.77 per share.

    The stability in the business operations is phenomenal. In the last four quarters, Reynolds Consumer (REYN) has topped quarterly revenues estimates three times. So, REYN could be a good option to go with as we move ahead.

  • The Three Top Consumer Stocks that should be on your Watch List

    The Three Top Consumer Stocks that should be on your Watch List

    The consumer stocks are mostlya long-term option for investors, with usually high dividend yields.

    Consumer stocks held up well last year, and on reasonable grounds. When the pandemic reached its peak in March, daily life product sales soared as people got panic with a potential threat of supply issues.

    Looking into this year’s probability of consumer stocks success, it’s expected that things would be better economically compared to that of 2020. Moreover, there is a favorable amount of research work going on vaccines, and Pfizer’s vaccine is already being utilized. So, overall, the health and economic condition seem to be getting better with time.

    For investors, the consumer stock market has minimal volatility and well-charted returns. That’s what Warren Buffet—the investor’s Guru believes. On top of that, many of the consumer staple stocks are great dividend stocks with high yields, as well. If you are interested in consumer stocks, here are the three top stocks for investment.

    Coca-Cola (KO)

    The leading beverage company across the globe, Coca-Cola (KO) is one of the big giants in the market. The largest guru shareholder in the company is Warren Buffet, who has around 9.31% stakes in the company. KO has a dividend yield of 3.30%, as we write this.

    With the go green campaign in the US, the company has finally completed the launch of drink bottles made out of 100% recycled plastic for North American markets. All the recycled bottles will be available in stores later this month, as the company moves one step further to its bigger goal.

    The company claims that their recycled bottles will help in reducing greenhouse gas emissions by 10,000 metric tons per year—across different large markets. Coca-Cola has the goal to achieve up to 50% of recycled materials worldwide by 2030.

    The company is expected to report low results in the fourth quarter of 2020. Though Coca-Cola surpassed third-quarter expectations on a 6% revenue decline. The company will see a difference in its sale this year, with the stores expected to remain open. While the lockdown in the same period last year had a larger impact on sales.

    Costco Wholesale (COST)

    Costco Wholesale (COST) is a US-based multinational firm that runs a chain of membership-only warehouse clubs. The company has several advantages over its retailers, and that’s mostly due to its membership model having quite a reliable customer base. The customer retention rate is approximately 90%, which is remarkable.

    The company receives most of its profits on membership fees. This allows the company offering rock-bottom prices on merchandise, making it difficult to compete—along with recession-proof, as well.

    Costco’s growth strategies and better price management, along with its penetration into the online market have improved its sales performance. Recently, the company reported upbeat sales with sequential growth over the past few months. The warehouses recorded 17.9% growth to $13.64 billion in net sales during Jan. 2021. While, the growth rate in the last three months was 12.3%, 15.1%, and 15.9% as of Dec., Nov., and Oct., respectively.

    So, it seems that Costco Wholesale (COST) is synchronizing well with the e-commerce market. This will be a big plus for the company to generate large revenue in the long-term.

    Clorox (CLX)

    Clorox (CLX) is a global manufacturer and marketer of consumer and professional products. The company has recently declared its quarterly dividend for the 52ndconsecutive year. The dividend to be paid to the shareholders of Clorox’s common stock will be $1.11 per share. While it will be paid on May 7, 2021, to stockholders as of record of the close of business on April 21, 2021.

    On Feb.4, the company also updated its fiscal second-quarter 2021 results. The quarterly sales soared to 20%, with growth in all three businesses for a third consecutive quarter. The grilling sales surged up to double digits, driven by high consumption. This shows a massive rise in in-home meal occasions—as people are spending more time at home.

    Clorox (CLX) is growing with continued momentum. The company expects to keep up the pace in the coming quarters, as well.