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2 Consumer Stocks to Research Further and 1 to Brush Off

MGPI Cover Image

Consumer staples stocks are solid insurance policies in frothy markets ripe for corrections. But recently, the industry has failed to do its job as it shed 10.5% over the past six months. This drop was especially disappointing since the S&P 500 stood firm.

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 are two consumer stocks boasting durable advantages and one we’re swiping left on.

One Consumer Staples Stock to Sell:

MGP Ingredients (MGPI)

Market Cap: $697.5 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 Pass on MGPI?

  1. Products have few die-hard fans as sales have declined by 2.8% annually over the last three years
  2. Sales are projected to tank by 19.8% over the next 12 months as its demand continues evaporating
  3. Operating profits fell over the last year as its sales dropped and it struggled to adjust its fixed costs

At $32.79 per share, MGP Ingredients trades at 12.3x forward P/E. Read our free research report to see why you should think twice about including MGPI in your portfolio.

Two Consumer Staples Stocks to Watch:

Monster (MNST)

Market Cap: $61.3 billion

Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ: MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.

Why Are We Bullish on MNST?

  1. Excellent operating margin of 27.3% highlights the efficiency of its business model
  2. MNST is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its recently improved profitability means it has even more resources to invest or distribute
  3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

Monster’s stock price of $62.91 implies a valuation ratio of 33.4x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

Vita Coco (COCO)

Market Cap: $2.02 billion

Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ: COCO) offers coconut water products that are a natural way to quench thirst.

Why Do We Watch COCO?

  1. Stellar 8.4% growth in unit sales over the past two years demonstrates the high demand for its products
  2. Earnings growth has massively outpaced its peers over the last three years as its EPS has compounded at 46.9% annually
  3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its rising returns show it’s making even more lucrative bets

Vita Coco is trading at $34.10 per share, or 29.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking 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 176% over the last five years.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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.

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