ZACKS·2025-06-20 13:31Core Viewpoint - Geopolitical tensions, delayed interest rate cuts, and tariff uncertainties are causing market volatility, despite a slight rebound in consumer confidence [1][4][5] Group 1: Market Conditions - The Federal Reserve maintained interest rates at 4.25% to 4.5%, indicating a cautious approach to rate cuts while monitoring the impact of tariffs on inflation [4] - Policymakers have lowered the 2025 economic growth forecast to 1.4% and increased the core inflation outlook to 3.1% due to tariff-related uncertainties [5] - Ongoing geopolitical tensions, particularly between Iran and Israel, are contributing to market volatility, with potential U.S. involvement raising further concerns [6][7] Group 2: Investment Recommendations - In light of market volatility, investing in low-beta defensive stocks from the consumer staples sector is recommended, including Philip Morris International Inc. (PM), Nomad Foods Limited (NOMD), Altria Group, Inc. (MO), The Coca-Cola Company (KO), and Ingredion Incorporated (INGR) [2][11] - These stocks are characterized by low beta (greater than 0 but less than 1), high dividend yields, and favorable Zacks Ranks [3] Group 3: Company Profiles - Philip Morris International Inc. (PM): Expected earnings growth rate of 13.7% for the current year, with a Zacks Rank of 2 and a dividend yield of 2.96% [9] - Nomad Foods Limited (NOMD): Expected earnings growth rate of 7.3% for the current year, Zacks Rank 1, and a dividend yield of 3.96% [13] - Altria Group, Inc. (MO): Expected earnings growth rate of 5.3% for the current year, Zacks Rank 2, and a dividend yield of 6.86% [15] - The Coca-Cola Company (KO): Expected earnings growth rate of 3.1% for the current year, Zacks Rank 2, and a dividend yield of 2.95% [17] - Ingredion Incorporated (INGR): Expected earnings growth rate of 6.1% for the current year, Zacks Rank 2, and a dividend yield of 2.34% [19]