1 Consumer Stock for Long-Term Investors and 2 We Ignore

FRPT Cover Image

Regarded as defensive investments, consumer staples stocks are generally safe bets in choppy markets. But they’re also double-edged swords as they often lag in booming conditions, and this pattern has persisted recently. Over the past six months, the industry has recorded a loss of 8.2%, a far cry from the S&P 500’s 14.4% ascent.

The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Taking that into account, here is one resilient consumer stock we’ve added to our cart and two best left ignored.

Two Consumer Staples Stocks to Sell:

Freshpet (FRPT)

Market Cap: $3.03 billion

Standing out from typical processed pet foods, Freshpet (NASDAQ: FRPT) is a pet food company whose product portfolio includes natural meals and treats for dogs and cats.

Why Are We Hesitant About FRPT?

  1. Subscale operations are evident in its revenue base of $1.08 billion, meaning it has fewer distribution channels than its larger rivals
  2. Negative free cash flow raises questions about the return timeline for its investments
  3. Push for growth has led to negative returns on capital, signaling value destruction

At $61.98 per share, Freshpet trades at 40x forward P/E. Read our free research report to see why you should think twice about including FRPT in your portfolio.

Tyson Foods (TSN)

Market Cap: $20.05 billion

Started as a simple trucking business, Tyson Foods (NYSE: TSN) is one of the world’s largest producers of chicken, beef, and pork.

Why Should You Sell TSN?

  1. Products fail to spark excitement with consumers, as seen in its flat sales over the last three years
  2. Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 7.2%
  3. Earnings per share fell by 22.1% annually over the last three years while its revenue was flat, showing each sale was less profitable

Tyson Foods is trading at $56.69 per share, or 14.8x forward P/E. To fully understand why you should be careful with TSN, check out our full research report (it’s free for active Edge members).

One Consumer Staples Stock to Buy:

Vital Farms (VITL)

Market Cap: $1.37 billion

With an emphasis on ethically produced products, Vital Farms (NASDAQ: VITL) specializes in pasture-raised eggs and butter.

Why Will VITL Outperform?

  1. Unit sales were phenomenal over the past two years, showing demand is robust and retailers can’t stock enough of its products
  2. Market share will likely rise over the next 12 months as its expected revenue growth of 27.1% is robust
  3. Earnings growth has trumped its peers over the last three years as its EPS has compounded at 143% annually

Vital Farms’s stock price of $30.52 implies a valuation ratio of 19.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

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

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