Consumer staples stocks function noncyclically, meaning they offer investors safety during recessionary climates. Since these companies sell products like food and cleaning products that consumers rely on regardless of the state of the economy, they tend to generate solid profits even in a weak economy.
Key Takeaways. Consumer staple stocks represent companies that are noncyclical because they produce or sell goods or services that are always in demand. Characterized by steady if unspectacular growth, the consumer staple sector is a haven in for investors in recessionary times.
Top Consumer Discretionary Stocks To Watch
Companies whose stocks are cyclical include car manufacturers, airlines, furniture retailers, clothing stores, hotels, and restaurants.
Walmart Inc. dropped to the bottom of the S&P 500 Consumer Staples index in December 2020 after the U.S. Justice Department sued the big-box retailer, alleging that it contributed to the growth of the opioid crisis in the country.
The best stocks to buy for 2021:
Consumer Staples Sector
Consumer staples products include food, personal care items, beverages — both alcoholic and nonalcoholic — and tobacco products. ... Examples of some of the largest consumer staples companies include Coca-Cola, Proctor & Gamble and Wal-Mart Stores.
Best Cyclical Stocks To Watch Right Now
| Best Value Food Stocks | ||
|---|---|---|
| Price ($) | 12-Month Trailing P/E Ratio | |
| Ingles Markets Inc. ( IMKTA) | 60.93 | 5.7 |
| Campbell Soup Co. ( CPB) | 47.88 | 8.2 |
| Albertsons Companies Inc. ( ACI) | 17.89 | 8.7 |
The order of the 11 sectors based on size is as follows: Information Technology, Health Care, Financials, Consumer Discretionary, Communication Services, Industrials, Consumer Staples, Energy, Utilities, Real Estate, and Materials.
Some stocks clearly fit into one category or the other. For example, 130-year-old spice manufacturer McCormick (NYSE:MKC) is clearly a value stock, while fast-moving Tesla (NASDAQ:TSLA) is an obvious example of a growth stock.
Consumer durable stocks are those of companies that produce and sell durable goods. Generally defined as products that last more than three years, durable goods include furniture, appliances, electronics, machinery, toys, tools, jewelry, firearms, and sporting goods.
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