Consumer staples are considered safe havens in turbulent markets due to their inelastic demand profiles. 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 7.4%, a far cry from the S&P 500’s 4.1% ascent.

Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. With that said, here is one consumer stock boasting a durable advantage and two we’re steering clear of.

Two Consumer StaplesStocks to Sell:

Conagra (CAG)

Market Cap: $9.06 billion

Founded in 1919 as Nebraska Consolidated Mills in Omaha, Nebraska, Conagra Brands today (NYSE: CAG) boasts a diverse portfolio of packaged foods brands that includes everything from whipped cream to jarred pickles to frozen meals.

Why Should You Dump CAG?

1. Shrinking unit sales over the past two years indicate demand is soft and that the company may need to revise its product strategy
2. Estimated sales decline of 3.5% for the next 12 months implies an even more challenging demand environment
3. ROIC of 5.4% reflects management’s challenges in identifying attractive investment opportunities, and its decreasing returns suggest its historical profit centers are aging

Conagra is trading at $19.02 per share, or 7.7x forward P/E. To fully understand why you should be careful with CAG, check out our full research report (it’s free).

Medifast (MED)

Market Cap: $139 million

Known for its Optavia program that combines portion-controlled meal replacements with coaching, Medifast (NYSE: MED) has a broad product portfolio of bars, snacks, drinks, and desserts for those looking to lose weight or consume healthier foods.

Why Is MED Risky?

1. Annual sales declines of 30.3% for the past three years show its products struggled to connect with the market
2. Operating margin declined by 10.2 percentage points over the last year as its sales cratered
3. Earnings per share have contracted by 27% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance

At $13.44 per share, Medifast trades at 0.4x forward price-to-sales. Check out our free in-depth research report to learn more about why MED doesn’t pass our bar.

One Consumer Staples Stock to Watch:

Procter & Gamble (PG)

Market Cap: $364.9 billion

Founded by candle maker William Procter and soap maker James Gamble, Proctor & Gamble (NYSE: PG) is a consumer products behemoth whose product portfolio spans everything from facial tissues to laundry detergent to feminine care to men’s grooming.

Why Are We Fans of PG?

1. Unparalleled brand awareness is evident in its $83.93 billion revenue base, which gives it advantageous terms because retailers must stock its products
2. Healthy operating margin of 25.2% shows it’s a well-run company with efficient processes
3. PG is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Procter & Gamble’s stock price of $155.30 implies a valuation ratio of 21.8x 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

Trump’s April 2024 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound 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 183% over the last five years (as of March 31st 2025).

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 Kadant (+351% 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.