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 3.3%, a far cry from the S&P 500’s 10.3% 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. Taking that into account, here is one resilient consumer stock we’ve added to our cart and two we’re swiping left on.
Two Consumer Staples Stocks to Sell:
Energizer (ENR)
Market Cap: $1.27 billion
Masterminds behind the viral Energizer Bunny mascot, Energizer (NYSE: ENR) is one of the world's largest manufacturers of batteries.
Why Is ENR Not Exciting?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Estimated sales growth of 1.9% for the next 12 months is soft and implies weaker demand
- 5× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Energizer is trading at $18.55 per share, or 5.4x forward P/E. Dive into our free research report to see why there are better opportunities than ENR.
Kraft Heinz (KHC)
Market Cap: $29.02 billion
The result of a 2015 mega-merger between Kraft and Heinz, Kraft Heinz (NASDAQ: KHC) is a packaged foods giant whose products span coffee to cheese to packaged meat.
Why Should You Dump KHC?
- Falling unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
- Overall productivity fell over the last year as its plummeting sales were accompanied by a decline in its operating margin
Kraft Heinz’s stock price of $24.53 implies a valuation ratio of 12.1x forward P/E. If you’re considering KHC for your portfolio, see our FREE research report to learn more.
One Consumer Staples Stock to Watch:
e.l.f. Beauty (ELF)
Market Cap: $3.41 billion
Short for "eyes, lips, face", e.l.f. Beauty (NYSE: ELF) is a developer of high-quality beauty products at accessible price points.
Why Could ELF Be a Winner?
- Annual revenue growth of 41.4% over the last three years was superb and indicates its market share is rising
- Products command premium prices and lead to a best-in-class gross margin of 71%
- Earnings per share grew by 23.8% annually over the last three years, massively outpacing its peers
At $57.57 per share, e.l.f. Beauty trades at 17.4x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
