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The Zacks Analyst Blog Highlights The Procter & Gamble, Corteva, e.l.f. Beauty, Mondelez International and TreeHouse Foods

For Immediate Release

Chicago, IL – January 19, 2023 – 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 Procter & Gamble Co. PG, Corteva Inc. CTVA, e.l.f. Beauty Inc. ELF, Mondelez International Inc. MDLZ and TreeHouse Foods Inc. THS.

Here are highlights from Wednesday’s Analyst Blog:

Top 5 Consumer Staple Stocks Set to Beat This Earnings Season

The fourth-quarter 2022 earnings season is gathering pace this week. This reporting cycle will be important as market participants will closely monitor any sign of earnings, revenues or margin decline. A large section of economists and financial experts are concerned that the U.S. economy may face at least a mild recession in 2023 with a higher interest rate regime and tighter monetary control adopted by the Fed.

However, five consumer staple stocks with a favorable Zacks Rank are poised to beat on earnings. The combination of a favorable Zacks Rank and a possible earnings beat should drive their stock prices in the near-term. These companies are - The Procter & Gamble Co., Corteva Inc., e.l.f. Beauty Inc., Mondelez International Inc. and TreeHouse Foods Inc..

Consumer Staple Sector in Q4 2022

Out of the 11 broad sectors of the market's benchmark — the S&P 500 Index — only the energy sector traded in positive territory with a huge rally of 64.2% in 2022. However, among the remaining 10 sectors, consumer staples suffered marginally by declining 0.8% last year while the benchmark itself tumbled 19.4%.

The consumer staples sector is mature and fundamentally strong as demand for such services is generally immune to the changes in the economic cycle. The consumer staples sector includes companies that provide necessities and products for daily use. This makes the sector defensive in nature.

Therefore, this has always been a go-to place for investors, who want to play it safe during extreme market fluctuations irrespective of internal or external disturbances. Consequently, consumer staples stocks performed relatively well in fourth-quarter 2022, which was extremely volatile unlike other years.

Our Top Picks

Five consumer staples companies' earnings are set to beat estimates. Each of these stocks carries a Zacks Rank #2 (Buy) and has a positive Earnings ESP. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that for stocks with the combination of a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are anticipated to appreciate after their earnings releases. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Procter & Gamble has benefitted from robust pricing and a favorable mix, along with strength across segments. PG's products play a key role in meeting the daily health, hygiene and cleaning needs of consumers around the world. PG witnessed continued strong momentum as reflected by the underlying strength in brands and appropriate strategies, which aided its organic sales growth.

Procter & Gamble remains focused on productivity and cost-saving plans to boost margins. Its continued investment in business alongside efforts to offset macro cost headwinds and balance top and bottom-line growth underscores its productivity efforts. PG is witnessing cost savings and efficiency improvements across all facets of the business.

Procter & Gamble has an Earnings ESP of +0.28% for second quarter fiscal 2023. It has an expected earnings growth rate of 0.3 for the current year (ending June 2023). PG recorded earnings surprises in three out of the last four reported quarters, with an average beat of 1.1%. The company is set to release earnings results on Jan 19, before the opening bell.

Mondelez International has been gaining from the strength in emerging markets and its core chocolate and biscuit categories. MDLZ has also been focused on strengthening areas with higher growth potential through prudent buyouts (like Chipita, Clif Bar and Ricolino) and divestitures.

These upsides, together with pricing actions, fueled Mondelez's third-quarter 2022 results. Driven by the solid quarterly results and continued momentum in the snacks business, management raised its guidance for 2022.

Mondelez International has an Earnings ESP of +2.64% for fourth-quarter 2022. It has an expected earnings growth rate of 5.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 30 days.

MDLZ recorded earnings surprises in three out of the last four reported quarters, with an average beat of 6.4%. The company is set to release earnings results on Jan 31, after the closing bell.

Corteva operates in the agriculture business. CTVA operates through two segments, Seed and Crop Protection. Corteva develops and supplies germplasm and traits in the corn, soybean and sunflower seed markets. CTVA also supplies products to the agricultural input industry that protects against weeds, insects and other pests, and diseases as well as enhances crop health.

Corteva has an Earnings ESP of +33.33% for fourth-quarter 2022. It has an expected earnings growth rate of 25.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the last seven days.

CTVA recorded earnings surprises in the last four reported quarters, with an average beat of 19.8%. The company is set to release earnings results on Feb 1, after the closing bell.

e.l.f. Beauty operates as a cosmetic company. ELF's cosmetic category primarily consists of face makeup, eye makeup, lip products, nail products and cosmetics sets/kits. ELF sells its products through national and international retailers and direct-to-consumer channels, which include e-commerce platforms in the United States, and internationally primarily through distributors.

e.l.f. Beauty has an Earnings ESP of +31.48% for third-quarter fiscal 2023. It has an expected earnings growth rate of 23.3% for the current year (ending March 2023). The Zacks Consensus Estimate for current-year earnings has improved 30% over the last 90 days.

ELF recorded earnings surprises in the last four reported quarters, with an average beat of 92.8%. The company is set to release earnings results on Feb 1, after the closing bell.

TreeHouse Foods is benefiting from its efficient pricing efforts. In the third quarter of 2022, THS' top line increased year over year, with pricing being the main driver. Management expects net sales growth to be strong in fiscal 2023 due to pricing actions. THS has been benefiting from the sturdy demand for its private-label products.

TreeHouse Foods has an Earnings ESP of +5.88% for fourth-quarter 2022. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.2% over the last 30 days.

THS recorded earnings surprises in the last four reported quarters, with an average beat of 56.3%. The company is set to release earnings results on Feb 13, before the opening bell.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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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.

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Procter & Gamble Company The (PG) : Free Stock Analysis Report

TreeHouse Foods, Inc. (THS) : Free Stock Analysis Report

Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report

e.l.f. Beauty (ELF) : Free Stock Analysis Report

Corteva, Inc. (CTVA) : Free Stock Analysis Report

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