Consumer staples are considered safe havens in turbulent markets due to their inelastic demand profiles. On the other hand, they usually underperform during bull runs, and this paradigm has rung true over the past six months as the sector’s -11.5% decline paled in comparison to the S&P 500’s 11.5% gain.
Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. On that note, here are two resilient consumer stocks we’ve added to our cart and one we’re passing on.
One Consumer Staples Stock to Sell:
J&J Snack Foods (JJSF)
Market Cap: $1.72 billion
Best known for its SuperPretzel soft pretzels and ICEE frozen drinks, J&J Snack Foods (NASDAQ: JJSF) produces a range of snacks and beverages and distributes them primarily to supermarket and food service customers.
Why Are We Cautious About JJSF?
- 4.7% annual revenue growth over the last three years was slower than its consumer staples peers
- Revenue base of $1.58 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Estimated sales growth of 2.1% for the next 12 months implies demand will slow from its three-year trend
J&J Snack Foods is trading at $90.03 per share, or 20x forward P/E. To fully understand why you should be careful with JJSF, check out our full research report (it’s free for active Edge members).
Two Consumer Staples Stocks to Watch:
Monster (MNST)
Market Cap: $74.39 billion
Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ: MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.
Why Will MNST Beat the Market?
- Highly efficient business model is illustrated by its impressive 28% operating margin, and its operating leverage amplified its profits over the last year
- MNST is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy
- ROIC punches in at 37.3%, illustrating management’s expertise in identifying profitable investments
At $76.25 per share, Monster trades at 34.6x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
Coca-Cola (KO)
Market Cap: $290.5 billion
A pioneer and behemoth in carbonated soft drinks, Coca-Cola (NYSE: KO) is a storied beverage company best known for its flagship soda.
Why Could KO Be a Winner?
- Dominant market position is represented by its $47.65 billion in revenue, which gives it negotiating power with suppliers and retailers
- Differentiated product offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 61.1%
- Excellent operating margin of 25.7% highlights the efficiency of its business model, and its profits increased over the last year as it scaled
Coca-Cola’s stock price of $67.56 implies a valuation ratio of 21.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
