Consumer staples are considered safe havens in turbulent markets due to their inelastic demand profiles. On the other hand, they usually underperform during bull runs, and this paradigm has rung true over the past six months as the sector’s -5.8% decline paled in comparison to the S&P 500’s 12.7% gain.
Some companies can buck this trend, but the odds aren’t great for the ones we’re analyzing today. On that note, here are three consumer stocks we’re steering clear of.
Campbell's (CPB)
Market Cap: $8.52 billion
With its iconic canned soup as its cornerstone product, Campbell's (NASDAQ: CPB) is a packaged food company with an illustrious portfolio of brands.
Why Should You Sell CPB?
- Flat unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Projected sales decline of 2.3% for the next 12 months points to a tough demand environment ahead
- Incremental sales over the last three years were much less profitable as its earnings per share fell by 1.3% annually while its revenue grew
At $28.65 per share, Campbell's trades at 11.7x forward P/E. If you’re considering CPB for your portfolio, see our FREE research report to learn more.
Utz (UTZ)
Market Cap: $872.2 million
Tracing its roots back to 1921 when Bill and Salie Utz began making potato chips in their kitchen, Utz Brands (NYSE: UTZ) offers salty snacks such as potato chips, tortilla chips, pretzels, cheese snacks, and ready-to-eat popcorn, among others.
Why Do We Steer Clear of UTZ?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Modest revenue base of $1.44 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
- ROIC of 0.3% reflects management’s challenges in identifying attractive investment opportunities
Utz is trading at $10.30 per share, or 11.8x forward P/E. Check out our free in-depth research report to learn more about why UTZ doesn’t pass our bar.
Fresh Del Monte Produce (FDP)
Market Cap: $1.79 billion
Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE: FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables.
Why Are We Out on FDP?
- Sales stagnated over the last three years and signal the need for new growth strategies
- Sales are projected to tank by 2.9% over the next 12 months as demand evaporates further
- Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 8.2%
Fresh Del Monte Produce’s stock price of $35.85 implies a valuation ratio of 13.7x forward P/E. Dive into our free research report to see why there are better opportunities than FDP.
Stocks We Like More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.
