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4 Consumer Staples Stocks That Are Up More Than 100% in 2020

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Ansuiya Mohta
·5 min read
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It is safe to say that while the coronavirus outbreak has dealt huge blows to many sectors, the Consumer Staples sector has been quite resilient. People continue to spend on consumer staples like groceries, household goods, alcoholic and non-alcoholic beverages, cleaning products and cosmetics or toiletries among others, regardless of the state of the economy.

Incidentally, a number of consumer staple players are seeing an upward sales trend on the back of the pandemic-induced stockpiling and increased at-home consumption as Americans are spending more time at home and limiting shopping trips to maintain social distancing. Moreover, companies in the sector are taking proactive measures to preserve cash and strength liquidity to deal with the coronavirus crisis.

Additionally, players in this space have been focused on creating seamless shopping experiences, which has been accelerating growth. To this end, they have been making incremental investments in their digital platforms to keep pace with consumers’ evolving shopping patterns. Apart from this, continued investments to enhance their offerings through customer-friendly innovation as well as acquisitions and other expansions have been major drivers. Also, these players have been keen on undertaking prudent divestitures to focus on areas with higher growth potential.

These robust fundamentals, combined with pandemic-led surging demand have been backing a number of players in the consumer staples space and have in fact helped some of the participants to return more than 100% in 2020. Even in general, the sector has historically been better positioned during economic slowdowns and periods of uncertainty – thanks to its non-cyclical nature.

All said, we have handpicked four consumer staple stocks, which have rallied more than 100% on a year-to-date basis and possess a market cap of more than $1 billion.

 

Top Picks

Tupperware Brands Corporation TUP is benefiting from elevated at-home consumption trends, thanks to the pandemic. Moreover, this Zacks Rank #1 (Strong Buy) company’s meaningful turnaround plan, which includes enhancing its core business, is contributing to its growth and profitability. Further, the company has been gaining on its efforts to augment its sales force’s dependence on digital methods. Apart from this, its cost-saving initiatives have been yielding favorable results. With a market cap of $1.6 billion, this provider of design-centric preparation, storage, and serving solutions for home and kitchen, along with cookware, microwave products, microfiber textiles and water-filtration related items, has soared 270.9% in the year-to-date period. The company has a long-term earnings growth rate of 12%. Further, the Zacks Consensus Estimate for Tupperware Brands’ current-year earnings per share (EPS) has surged 60.4% in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Boston Beer Company Inc. SAM has soared 154.9% year to date. Unparalleled strength in depletions and shipments has been a key growth driver for the company. Moreover, a three-point growth plan focused on the revival of its Samuel Adams and Angry Orchard brands along with cost-saving initiatives and innovative position the company for a strong upside in the long term. The Zacks Rank #2 (Buy) company has also been a key beneficiary of the recent boom in the hard seltzer market. Further, the consensus mark for its current-year EPS has moved up 21.2% in the past 60 days. Markedly, the company has a market capitalization of $11.8 billion.

Celsius Holdings, Inc. CELH has specialization in commercializing healthier, nutritional functional foods beverages and dietary supplements. Notably, the shift in consumer preference from carbonated soft drinks is leading to a rise in demand for Celsius Holdings’ products. Moreover, the company, which develops, markets, distributes, and sells functional calorie-burning fitness beverages in the United States and internationally, is gaining from increased focus on its online business. Also, significant expansion of its direct store delivery distribution network and strategic buyouts is paving the way for the company to tap growth opportunities. The Zacks Consensus Estimate for the company’s current-year EPS has risen 25% in the past 60 days. The company has a Zacks Rank #3 (Hold) and a market cap of nearly $3 billion. Encouragingly, the stock has returned a whopping 754.3% so far this year.

Utz Brands, Inc. UTZ, which has railed 111.5% year to date, is gaining on burgeoning coronavirus-led demand, stemming from increased at-home consumption. Also, the company has been focused on solidifying its core business across geographies and key channels. This provider of diverse savory snacks boasts a solid brand portfolio, competitively-advantaged production and distribution network coupled with solid execution capabilities. Apart from this, the company’s strategic buyouts and cost-saving initiatives have been yielding meaningful results. The company holds a Zacks Rank #3 and has a market cap of $2.6 billion.

Zacks Top 10 Stocks for 2021

In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2021?

These 10 are painstakingly hand-picked from over 4,000 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Start Your Access to the New Zacks Top 10 Stocks >>


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Tupperware Brands Corporation (TUP) : Free Stock Analysis Report
 
The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report
 
Celsius Holdings Inc. (CELH) : Free Stock Analysis Report
 
Utz Brands, Inc. (UTZ) : Free Stock Analysis Report
 
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