
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 9.3% while the S&P 500 was up 10.5%.
Investors should tread carefully as the low switching costs for everyday products mean that not all businesses are created equal. With that said, here are three consumer stocks we’re swiping left on.
Molson Coors (TAP)
Market Cap: $9.34 billion
Sporting an impressive roster of iconic beer brands, Molson Coors (NYSE: TAP) is a global brewing giant with a rich history dating back more than two centuries.
Why Are We Out on TAP?
- Shrinking unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
- Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 33.7 percentage points
- Underwhelming -0.7% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its shrinking returns suggest its past profit sources are losing steam
Molson Coors is trading at $47.25 per share, or 8.4x forward P/E. Check out our free in-depth research report to learn more about why TAP doesn’t pass our bar.
Nature's Sunshine (NATR)
Market Cap: $384.9 million
Started on a kitchen table in Utah, Nature’s Sunshine (NASDAQ: NATR) manufactures and sells nutritional and personal care products.
Why Do We Think Twice About NATR?
- Sales trends were unexciting over the last three years as its 2.8% annual growth was below the typical consumer staples company
- Smaller revenue base of $474.5 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.1%
At $21.97 per share, Nature's Sunshine trades at 23.3x forward P/E. If you’re considering NATR for your portfolio, see our FREE research report to learn more.
USANA (USNA)
Market Cap: $365.8 million
Going to market with a direct selling model rather than through traditional retailers, USANA Health Sciences (NYSE: USNA) manufactures and sells nutritional, personal care, and skincare products.
Why Does USNA Fall Short?
- Products aren't resonating with the market as its revenue declined by 4.2% annually over the last three years
- Forecasted revenue decline of 1.9% for the upcoming 12 months implies demand will fall even further
- Performance over the past three years shows each sale was less profitable as its earnings per share dropped by 20.9% annually, worse than its revenue
USANA’s stock price of $20.00 implies a valuation ratio of 11.2x forward P/E. To fully understand why you should be careful with USNA, check out our full research report (it’s free).
Stocks We Like More
Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.