Consumer staples stocks are solid insurance policies in frothy markets ripe for corrections. 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 10.5%, a far cry from the S&P 500’s 4.5% ascent.

The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Keeping that in mind, here are two resilient consumer stocks we’ve added to our cart and one we’re passing on.

One Consumer StaplesStock to Sell:

Church & Dwight (CHD)

Market Cap: $23.34 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 Give Us Pause?

1. 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
2. Estimated sales growth of 1% for the next 12 months implies demand will slow from its three-year trend
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 is trading at $94.78 per share, or 25.2x forward P/E. If you’re considering CHD for your portfolio, see our FREE research report to learn more.

Two Consumer Staples Stocks to Watch:

Colgate-Palmolive (CL)

Market Cap: $71.89 billion

Formed after the 1928 combination between toothpaste maker Colgate and soap maker Palmolive-Peet, Colgate-Palmolive (NYSE: CL) is a consumer products company that focuses on personal, household, and pet products.

Why Do We Like CL?

1. Sizeable revenue base of $19.95 billion gives it economies of scale and favorable terms with retailers and suppliers
2. Robust free cash flow margin of 16.3% gives it many options for capital deployment, and its improved cash conversion implies it’s becoming a less capital-intensive business
3. Industry-leading 39.7% return on capital demonstrates management’s skill in finding high-return investments, and its returns are growing as it capitalizes on even better market opportunities

At $88.84 per share, Colgate-Palmolive trades at 23.6x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Vital Farms (VITL)

Market Cap: $1.73 billion

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

Why Is VITL a Good Business?

1. Stellar 17.8% growth in unit sales over the past two years demonstrates the high demand for its products
2. Expected revenue growth of 26.7% for the next year suggests its market share will rise
3. Earnings growth has massively outpaced its peers over the last three years as its EPS has compounded at 161% annually

Vital Farms’s stock price of $37.78 implies a valuation ratio of 28.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

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