ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

1 Consumer Stock Worth Investigating and 2 Facing Challenges

MGPI Cover Image

Consumer staples are considered safe havens in turbulent markets due to their inelastic demand profiles. The flip side is that they frequently fall behind growth industries when times are good, and this perception became a reality over the past six months as the sector was down 10.3% while the S&P 500 was up 13%.

The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. On that note, here is one consumer stock boasting a durable advantage and two best left ignored.

Two Consumer Staples Stocks to Sell:

MGP Ingredients (MGPI)

Market Cap: $533 million

Headquartered in Atchison, Kansas, MGP Ingredients (NASDAQ: MGPI) is a leading supplier of high-quality ingredients to the food and beverage industry

Why Do We Avoid MGPI?

  1. Sales tumbled by 8.6% annually over the last three years, showing consumer trends are working against its favor
  2. Forecasted revenue decline of 12% for the upcoming 12 months implies demand will fall even further
  3. Operating margin declined by 18.3 percentage points over the last year as its sales cratered

MGP Ingredients’s stock price of $25.14 implies a valuation ratio of 10.6x forward P/E. Read our free research report to see why you should think twice about including MGPI in your portfolio.

Nature's Sunshine (NATR)

Market Cap: $370.4 million

Started on a kitchen table in Utah, Nature’s Sunshine (NASDAQ: NATR) manufactures and sells nutritional and personal care products.

Why Does NATR Worry Us?

  1. 2.8% annual revenue growth over the last three years was slower than its consumer staples peers
  2. Smaller revenue base of $474.5 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
  3. Projected sales growth of 3.1% for the next 12 months suggests sluggish demand

At $21.17 per share, Nature's Sunshine trades at 22.9x forward P/E. Check out our free in-depth research report to learn more about why NATR doesn’t pass our bar.

One Consumer Staples Stock to Watch:

e.l.f. Beauty (ELF)

Market Cap: $4.38 billion

Short for "eyes, lips, face", e.l.f. Beauty (NYSE: ELF) is a developer of high-quality beauty products at accessible price points.

Why Is ELF on Our Radar?

  1. Impressive 45.7% annual revenue growth over the last three years indicates it’s winning market share
  2. Earnings growth has trumped its peers over the last three years as its EPS has compounded at 40.3% annually
  3. Free cash flow margin jumped by 8.4 percentage points over the last year, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

e.l.f. Beauty is trading at $73.97 per share, or 24.2x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

Stocks We Like Even More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. 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-micro-cap company Tecnoglass (+1,754% 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

Recent Quotes

View More
Symbol Price Change (%)
AMZN  217.14
+0.00 (0.00%)
AAPL  266.25
+0.00 (0.00%)
AMD  206.02
+0.00 (0.00%)
BAC  51.00
+0.00 (0.00%)
GOOG  289.98
+0.00 (0.00%)
META  589.15
+0.00 (0.00%)
MSFT  478.43
+0.00 (0.00%)
NVDA  180.64
+0.00 (0.00%)
ORCL  210.69
+0.00 (0.00%)
TSLA  395.23
+0.00 (0.00%)
Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.