5 Safe Stocks to Buy as Consumer Sentiment Hits 6-Month Low

Economic Overview - Rising inflation is causing concerns about an economic slowdown, with consumer sentiment declining significantly [1] - The University of Michigan's consumer sentiment index dropped to 67.4 in May, down from 77.2 in April, reflecting a 12.7% month-over-month and 14.2% year-over-year decline [1] - Economic growth slowed to 1.6% in the first quarter, below the consensus estimate of 2.2% [2] - The Consumer Price Index (CPI) rose 3.5% in March, raising concerns about potential delays in Federal Reserve rate cuts [2] Investment Recommendations - Defensive stocks such as utilities and consumer staples are recommended for investment, including California Water Service Group, National Grid plc, Pinnacle West Capital Corporation, Colgate-Palmolive Company, and PepsiCo, Inc. [3] - These stocks are categorized as low-beta stocks, with beta values greater than 0 but less than 1, and are expected to provide stability during market volatility [3] Company-Specific Insights - California Water Service Group (CWT): Expected earnings growth rate of 246.2% for the current year, with a Zacks Rank 1 and a current dividend yield of 2.11% [4] - National Grid plc (NGG): Expected earnings growth rate of 29.3% for the current year, Zacks Rank 2, and a current dividend yield of 3.31% [5] - Pinnacle West Capital Corporation (PNW): Expected earnings growth rate of 7.9% for the current year, Zacks Rank 2, and a current dividend yield of 4.56% [6] - Colgate-Palmolive Company (CL): Expected earnings growth rate of 9% for the current year, Zacks Rank 2, and a current dividend yield of 2.10% [7] - PepsiCo, Inc. (PEP): Expected earnings growth rate of 7.1% for the current year, Zacks Rank 2, and a current dividend yield of 2.81% [7]