Regarded as defensive investments, consumer staples stocks are generally safe bets in choppy markets. But recently, the industry has failed to do its job as it shed 11.9% over the past six months. This performance was worse than the S&P 500’s 6.2% loss.

Investors should tread carefully as the low switching costs for everyday products mean that not all businesses are created equal. Taking that into account, here are three consumer stocks we’re swiping left on.

Church & Dwight (CHD)

Market Cap: $22.67 billion

Best known for its Arm & Hammer baking soda, Church & Dwight (NYSE: CHD) is a household and personal care products company with a vast portfolio that spans laundry detergent to toothbrushes to hair removal creams.

Why Does CHD Worry Us?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
3. Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 4.9 percentage points

Church & Dwight’s stock price of $92.07 implies a valuation ratio of 24.5x forward P/E. Dive into our free research report to see why there are better opportunities than CHD.

Reynolds (REYN)

Market Cap: $4.82 billion

Best known for its aluminum foil, Reynolds (NASDAQ: REYN) is a household products company whose products focus on food storage, cooking, and waste.

Why Is REYN Risky?

1. Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth
2. Estimated sales decline of 1.4% for the next 12 months implies an even more challenging demand environment
3. Capital intensity has ramped up over the last year as its free cash flow margin decreased by 6.1 percentage points

Reynolds is trading at $23.22 per share, or 14x forward P/E. Read our free research report to see why you should think twice about including REYN in your portfolio.

Flowers Foods (FLO)

Market Cap: $3.68 billion

With Wonder Bread as its premier brand, Flower Foods (NYSE: FLO) is a packaged foods company that focuses on bakery products such as breads, buns, and cakes.

Why Are We Wary of FLO?

1. Declining unit sales over the past two years imply it may need to invest in product improvements to get back on track
2. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
3. Earnings per share lagged its peers over the last three years as they only grew by 1.2% annually

At $17.41 per share, Flowers Foods trades at 13.3x forward P/E. If you’re considering FLO for your portfolio, see our FREE research report to learn more.

Stocks That Overcame Trump’s 2018 Tariffs

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.