Consumer staples stocks are solid insurance policies in frothy markets ripe for corrections. The flip side is that they frequently fall behind growth industries when times are good, and this perception became a reality over the past six months as the sector was down 2.2% while the S&P 500 was up 16.5%.

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

Two Consumer Staples Stocks to Sell:

PepsiCo (PEP)

Market Cap: $192.5 billion

With a history that goes back more than a century, PepsiCo (NASDAQ: PEP) is a household name in food and beverages today and best known for its flagship soda.

Why Do We Think Twice About PEP?

1. Declining unit sales over the past two years suggest it might have to lower prices to stimulate growth
2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.2%
3. Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 2.1 percentage points

PepsiCo is trading at $140.80 per share, or 17.4x forward P/E. Check out our free in-depth research report to learn more about why PEP doesn’t pass our bar.

Tilray (TLRY)

Market Cap: $1.32 billion

Founded in 2013, Tilray Brands (NASDAQ: TLRY) engages in cannabis research, cultivation, and distribution, offering a range of medical and recreational cannabis products, hemp-based foods, and alcoholic beverages.

Why Do We Steer Clear of TLRY?

1. Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 255.8 percentage points
2. Earnings per share fell by 32.4% annually over the last three years while its revenue grew, showing its incremental sales were much less profitable
3. 8.1 percentage point decline in its free cash flow margin over the last year reflects the company’s increased investments to defend its market position

At $1.19 per share, Tilray trades at 16.5x forward EV-to-EBITDA. To fully understand why you should be careful with TLRY, check out our full research report (it’s free).

One Consumer Staples Stock to Watch:

WD-40 (WDFC)

Market Cap: $2.79 billion

Short for “Water Displacement perfected on the 40th try”, WD-40 (NASDAQ: WDFC) is a renowned American consumer goods company known for its iconic and versatile spray, WD-40 Multi-Use Product.

Why Should WDFC Be on Your Watchlist?

1. Differentiated product offerings are difficult to replicate at scale and result in a premier gross margin of 53.8%
2. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

WD-40’s stock price of $206.42 implies a valuation ratio of 34.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

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