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5 Consumer Staple Stocks to Trump Earnings Despite Coronavirus

Zacks Equity Research

Consumer Staples sector players appear to be in decent shape this earnings season even as most sectors bear the brunt of coronavirus-related  woes.

While results of major companies like Estee Lauder EL and Tyson Foods were affected by coronavirus-led disruptions, players like Kraft Heinz, Kellogg K, Church & Dwight and Clorox benefited from increased demand for products. Incidentally, the panic-buying of essentials like packaged foods and beverages, disinfecting products and other household and personal care items has been working well for many players in the sector.

Apart from burgeoning demand for essentials, contributions from buyouts, product innovation and other brand-building efforts bode well for consumer staple players. Further, their stringent saving and restructuring efforts have been helping tackle cost inflation as well as expenditures related to managing operations amid the COVID-19 crisis. Notably, per the latest Earnings Preview, the Consumer Staples sector is expected to see revenue growth of 9.9% and an earnings increase of 9.1% this quarter. In fact, this space has always been a go-to place for investors who want to play it safe during extreme market fluctuations.

All said, we have identified five consumer staple stocks, which are poised to beat the Zacks Consensus Estimate this earnings season, with the help of the Zacks Stock Screener. Our research shows that for stocks with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), the chances of a positive earnings surprise are as high as 70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

5 Solid Picks

Grocery Outlet Holding Corp. GO is mainly a provider of grocery, dairy and frozen products, among others. The stock has a Zacks Rank #1 and an Earnings ESP of +33.33%. The Zacks Consensus Estimate for first-quarter earnings is pegged at 24 cents. The company, which is scheduled to release results on May 11, has delivered a positive earnings surprise of 31.1%, on average, in the trailing three quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

Grocery Outlet Holding Corp. Price, Consensus and EPS Surprise



Grocery Outlet Holding Corp. Price, Consensus and EPS Surprise

Grocery Outlet Holding Corp. price-consensus-eps-surprise-chart | Grocery Outlet Holding Corp. Quote

The Hain Celestial Group, Inc. HAIN, with a Zacks Rank #1 and an Earnings ESP of +9.24%, is worth betting on. The Zacks Consensus Estimate for third-quarter fiscal 2020 earnings is pegged at 24 cents per share, suggesting growth of 14.3% from the prior-year quarter’s reported figure. This organic and natural products company has a trailing four-quarter positive earnings surprise of about 7%, on average. The company is slated to announce results on May 7.

The Hain Celestial Group, Inc. Price, Consensus and EPS Surprise



The Hain Celestial Group, Inc. Price, Consensus and EPS Surprise

The Hain Celestial Group, Inc. price-consensus-eps-surprise-chart | The Hain Celestial Group, Inc. Quote

Nomad Foods Limited NOMD also deserves a mention. The stock has a Zacks Rank #2 and an Earnings ESP of +5.32%. The Zacks Consensus Estimate for first-quarter 2020 earnings is pegged at 31 cents. This frozen food provider has a trailing four-quarter positive earnings surprise of 11.8%, on average. The company is slated to announce results on May 7.

Nomad Foods Limited Price, Consensus and EPS Surprise



Nomad Foods Limited Price, Consensus and EPS Surprise

Nomad Foods Limited price-consensus-eps-surprise-chart | Nomad Foods Limited Quote

Investors can even count on TreeHouse Foods, Inc. THS, a consumer packaged food and beverage manufacturer, with a Zacks Rank #3 and an Earnings ESP of +25.00%. The Zacks Consensus Estimate for first-quarter 2020 earnings is pegged at 32 cents, indicating a significant increase from the prior-year quarter’s reported figure. The company has a trailing four-quarter positive earnings surprise of 9.1%, on average. TreeHouse Foods is slated to announce results on May 7.

TreeHouse Foods, Inc. Price, Consensus and EPS Surprise



TreeHouse Foods, Inc. Price, Consensus and EPS Surprise

TreeHouse Foods, Inc. price-consensus-eps-surprise-chart | TreeHouse Foods, Inc. Quote

Another worthwhile option is International Flavors & Fragrances Inc. IFF, with a Zacks Rank #3 and an Earnings ESP of +2.19%. The Zacks Consensus Estimate for first-quarter 2020 earnings is pegged at $1.60 per share, suggesting growth of 1.9% from the prior-year period’s reported figure. The company, which produces flavors and fragrances for use in various consumer products, delivered a positive earnings surprise of 2.8% in the last reported quarter.

International Flavors & Fragrances Inc. Price, Consensus and EPS Surprise



International Flavors & Fragrances Inc. Price, Consensus and EPS Surprise

International Flavors & Fragrances Inc. price-consensus-eps-surprise-chart | International Flavors & Fragrances Inc. Quote

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The Estee Lauder Companies Inc (EL) : Free Stock Analysis Report
 
International Flavors Fragrances Inc (IFF) : Free Stock Analysis Report
 
The Hain Celestial Group Inc (HAIN) : Free Stock Analysis Report
 
Kellogg Company (K) : Free Stock Analysis Report
 
TreeHouse Foods Inc (THS) : Free Stock Analysis Report
 
Grocery Outlet Holding Corp (GO) : Free Stock Analysis Report
 
Nomad Foods Limited (NOMD) : Free Stock Analysis Report
 
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