Top Consumer Staples Stocks Under a Biden Presidency

There weren’t many sectors that were unaffected during the pandemic. Almost every industry experienced a sharp decline, with most still on the road to recovery. One stock sector that has done fairly well, unsurprisingly, is consumer goods and staples.

Consumer goods have benefited from people staying and working at home, compelled by lockdowns to stock up and cook. It might even result in a permanent shift in lifestyles, as the lockdown has generally resulted in more home cooking. We examine three consumer staple companies whose stocks might be heading for a strong 2021.

3 Consumer Staples Stocks Worth Considering

It is worth looking at stocks as concerns surrounding the US dollar form as a result of a second stimulus bill. The consumer staples sector has plenty of pickings, so supplement the following stocks with your own research. These are only some of the many consumer staples stocks in the market, but they are a good starting point.

1. Costco Wholesale Corporation (NASDAQ:COST)

The second-largest retailer in the world after Walmart, Costco, is one of America’s biggest corporations. It is ranked 14 on the Fortune 500 list of the largest US corporations by revenue as of 2019. Unsurprisingly, it has had a good year, as it supplies large volumes of meat, organic food, and wine.

Most of those products are essentials in the typical American household. Analysts seem to agree with many giving it a strong buy rating. The fact that it provides electronics items, which have also experienced demand in 2020, is a bonus.

The membership model and the discounts it offers serves the retailer well and makes it popular among customers. This gives it a reliable source of income, which is made apparent in the quarterly reports.

• The company has consistently been paying its dividends and also recently announced a special dividend.
• Earnings per share in the Q4 2020 report rose 16.36% to $3.13.
• Revenue grew by 12.5% year-over-year to approximately $53 billion.

2. Coca-Cola Company (NASDAQ:KO)

Almost everyone is aware of Coca-cola, and a good number are also aware that Berkshire Hathaway is a shareholder. Coca-cola is one of the most reliable stocks in the market, which is why someone like Warren Buffett would invest in it. This has most definitely been true during the pandemic.

It’s hard to foresee Coca-cola going down even when the world’s economies are tanking. The drink is a common staple, whether or not there is an economic downturn. The brand name has almost become a byword for fizzy drink.

And of course, to back up its fundamental value, the financial figures show that the stock has been performing well. It has suffered slightly during the pandemic, owing to the retrenchment of the food and beverages industry. Overall, however, Coca-cola has done well during the pandemic.

• As a result of restaurant and bar closures, net revenue declined 9% to $8.7 billion.
• Year-to-date cash from operations fell 20% to $6.2 billion.
• The company’s at-home channels are improving, from which it derives confidence.
• It will also release several new products in the first half of 2021.

3. Mondelez International, Inc. (NASDAQ:MDLZ)

Mondelez International is the company behind some of the most recognizable snacks in the world, like Cadbury, Oreo, and Ritz. Like Coca-cola, it’s hard to imagine a typical household not having these brands. These are among the most popular choices as far as snacks are concerned.

The company’s performance in 2020, according to financial reports, has been rather good. And this might continue going into 2021. Like other related stocks, it is a case of being mostly unaffected by the pandemic instead of seeing growth.

• In its Q3 earnings report, the company logged a 4.4% increase in net revenue.
• Year-to-date diluted earnings per share was reported as $1.66, down 24.2% from the same period last year.
• Operating income grew by 10.5% during the quarter.
• Free cash flow stands at $1.7 billion.
• The company is making eCommerce a priority to boost business.

Conclusion

2021 will be a better year on the whole, especially as the months go by. Vaccines look promising and distribution should begin in January, if not in December this year. More businesses will also open as months pass in 2021.

Market stability will also arrive, after what has been a volatile few months for both the stock and forex markets. While it will undoubtedly be a bumpy road, the US appears to be on the path to economic recovery. With that in mind, it might be worthwhile to consider the stocks listed here.

Do you agree with the forecasts for the aforementioned stocks? What suggestions would you offer? Let us know what you think in the comments below.

Disclosure: Tim Fries has no positions in any of the stocks mentioned, and has no plans to initiate any positions within the 72 hours following the publishing of this article. This article expresses the opinions of Tim Fries. Tokenist Media LLC has no position in any of the stocks mentioned, and does not plan to initiate any positions within 72 hours of the publishing of this article. Please consult our website policy for more information.