The Zacks Analyst Blog Highlights Clorox, Grocery Outlet, Molson Coors, Tyson Foods and Pilgrim's Pride
For Immediate Release
Chicago, IL – March 20, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: The Clorox Co. CLX, Grocery Outlet Holding Corp. GO, Molson Coors Beverage Co. TAP, Tyson Foods TSN and Pilgrim's Pride Corp. PPC.
Here are highlights from Tuesday’s Analyst Blog:
5 Consumer Staples Stocks to Buy on Rising Inflation in February
Volatility has returned to Wall Street after a solid rally in the first two months of the year. Inflation rose once again in February, dampening investors’ morale on fading hopes of a rate cut anytime soon.
The Labor Department reported last week that the consumer price index (CPI) rose 0.4% sequentially in February, higher than January’s rise of 0.3%. February’s jump was also the most since September 2023, after which inflation declined steadily to fall below 3% before climbing again in January.
Year over year, CPI jumped 3.2% in February after increasing 3.1% in the prior month.
Core CPI, which excludes the volatile energy and food prices, also rose 0.4% sequentially in February and 3.8% from year-ago levels.
Declining inflation saw the Federal Reserve ending its monetary tightening campaign at the end of last year. Investors cheered the decision after the Federal Reserve said it would initiate multiple rate cuts this year after hiking interest rates by 525 basis points since March 2022.
However, the expectations of the Federal Reserve implementing the first rate cut in March have now been dashed as inflation rose again in the first two months of 2024.
The Federal Reserve also said that the central bank officials would closely monitor inflation data and go for a rate cut only when they are confident. Market participants are now expecting the first rate cut not before the Fed’s June FOMC meeting.
Higher interest rates and uncertainty over the timing of the first rate cut could keep markets volatile for a longer period.
Our Choices
Given this situation, it would be wise to invest in five defensive consumer staples, such as The Clorox Co., Grocery Outlet Holding Corp., Molson Coors Beverage Co., Tyson Foods and Pilgrim's Pride Corp. These have a favorable Zacks Rank and are likely to strengthen one’s portfolio. Each of the stocks has a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Clorox Company is engaged in the production, marketing and sale of consumer products in the United States. and international markets. CLX sells its products primarily through mass merchandisers, grocery stores and other retail outlets.
The Clorox Company has an expected earnings growth rate of 5.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 21.6% over the last 60 days. CLX presently has a Zacks Rank #2.
Grocery Outlet Holding Corp. is a high-growth, extreme-value retailer of quality, name-brand consumables and fresh products that are sold through a network of independently owned and operated stores. Notably, GO’s stores offer a fun, treasure hunt shopping experience in an easy-to-navigate, “small-box” format of size 15,000-20,000 square feet.
Grocery Outlet has an expected earnings growth rate of 10.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.6% over the last 60 days. GO currently has a Zacks Rank #2.
Molson Coors Beverage Company, the global manufacturer and seller of beer and other beverage products, has an impressive diverse portfolio of owned and partner brands. TAP’s brands include global priority brands such as Blue Moon, Miller Lite, CoorsBanquet, Coors Light, Miller Genuine Draft and Staropramen, as well as regional champion brands like Carling and Molson Canadian.
Molson Coors Beverage Company’s expected earnings growth rate for the current year is 4.2%. The Zacks Consensus Estimate for the current-year earnings has improved 4.6% over the past 60 days. TAP presently carries a Zacks Rank #2.
Tyson Foods is the biggest U.S. chicken company and produces, distributes and markets chicken, beef, pork, as well as prepared foods. TSN’s products are marketed and sold primarily by sales staff to grocery retailers, grocery wholesalers, meat distributors, military commissaries, industrial food processing companies, chain restaurants, international export companies and domestic distributors.
Tyson Foods’ expected earnings growth rate for the current year is 74.6%. The Zacks Consensus Estimate for the current-year earnings has improved 23.2% over the past 60 days. TSN currently sports a Zacks Rank #1.
Pilgrim's Pride Corporation is engaged in the processing, production, marketing and distribution of frozen, fresh as well as value-added chicken products. PPC offers its services in the United States, Mexico, France, the Netherlands, Puerto Rico and Mexico through a number of distributors, retailers and food service operators.
Pilgrim's Pride’s expected earnings growth rate for the current year is 68.6%. The Zacks Consensus Estimate for the current-year earnings has improved 14.9% over the past 60 days. PPC presently sports a Zacks Rank #1.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Clorox Company (CLX) : Free Stock Analysis Report
Molson Coors Beverage Company (TAP) : Free Stock Analysis Report
Tyson Foods, Inc. (TSN) : Free Stock Analysis Report
Pilgrim's Pride Corporation (PPC) : Free Stock Analysis Report
Grocery Outlet Holding Corp. (GO) : Free Stock Analysis Report
