5 Consumer Staples Stocks to Buy for a Stable Portfolio

Economic Overview - U.S. stock markets experienced a strong rally in 2024, despite a setback in April, following an impressive performance in 2023 [1] - U.S. GDP growth for Q1 2024 was reported at 1.6%, below the consensus estimate of 2.5% [1] - The unemployment rate rose to 3.9% in April, the highest since January 2022, with job additions of 175,000 falling short of the 200,000 estimate [1] Consumer Sentiment and Retail Sales - Consumer sentiment dropped significantly, with the University of Michigan's final reading for May at 69.1%, down from 77.2% in April [2] - Retail sales remained flat month over month in April, missing the expected increase of 0.4%, with a year-over-year increase of 2.7% [2] - The consumer price index rose by 3.4% year over year in April, indicating that wage growth did not keep pace with inflation [2] Consumer Staples Sector - The consumer staples sector is characterized as mature and fundamentally strong, providing stability during economic fluctuations [4] - This sector is considered defensive, making it a preferred choice for investors seeking safety amid market volatility [4] Top Consumer Staples Picks - Colgate-Palmolive Co. (CL) expects net sales growth of 2-5% for 2024, with an earnings growth rate of 9.3% [6] - Tyson Foods Inc. (TSN) raised its adjusted operating income guidance for fiscal 2024, with an expected earnings growth rate of 91% [7] - McCormick & Company Inc. (MKC) anticipates a revenue growth rate of 0.3% and earnings growth of 5.6% for the current year [8] - PepsiCo Inc. (PEP) expects organic revenue growth of at least 4% for 2024, with earnings growth projected at 7.2% [9][10] - Freshpet Inc. (FRPT) has a remarkable expected revenue growth rate of 24.8% and earnings growth of over 100% for the current year [10]