The 3 Best Consumer Stocks to Buy in August 2024

Group 1: Market Overview - Consumer stocks are currently in a unique position, with many consumer discretionary stocks being oversold due to economic uncertainty, while consumer defensive stocks offer protection against market volatility [1] - A rigorous screening process was undertaken to identify three prudent consumer stocks, focusing on a mix of undervalued and low-beta assets [2] Group 2: Constellation Brands (STZ) - Constellation Brands is classified as a consumer staples stock, providing a defensive play in the market [4] - The company has a strong market position and an operating profit margin of 35.45%, indicating economies of scale and price flexibility [5] - STZ stock has a "buy" rating from Goldman Sachs, with expectations for the stock to reach $300 [6] - The stock has decreased by approximately 8% over the past year, with a forward price-to-earnings ratio of 18.15x and a forward dividend yield of 1.64% [7] Group 3: Ford Motor Company (F) - Ford's stock is considered to have deep value, having declined by about 20% year-over-year due to weaker sales and rising input costs [8] - Despite recent challenges, Ford remains a market leader, with a slight decrease in vehicle sales of 0.2% year-over-year [9] - Ford's Electric Vehicle (EV) sales increased by 31.2% year-over-year, indicating growth potential in this segment [10] - The stock has a price-to-earnings-growth (PEG) ratio of 0.56x and a price-to-sales ratio of 0.22x, suggesting it is undervalued [11] Group 4: British American Tobacco (BTI) - British American Tobacco offers a blend of defensive and value investment opportunities, with a focus on consumer staples [12] - The company is restructuring and has increased its stake in Canadian cannabis producer Organigram to 45%, indicating diversification [12] - BTI is targeting a net EBITDA ratio of 2x to 2.5x, which could enhance value for investors [13] - The stock has a forward price-to-earnings ratio of 8.06x and a forward dividend yield of 8.15%, appealing to income-seeking investors [14]