Top 7 Consumer Staples Stocks: November 2024
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
High inflation may well be here to stay — and it may force some consumers to reconsider nonessential purchases. But consumer staples are different, at least in theory. Even when the consumer price index (CPI) is off the charts, people still have to get groceries.
What are consumer staples stocks?
Consumer staples stocks are shares of publicly-traded companies that sell “needs.” Those needs include food, consumer products such as toothpaste, and basic clothing and furniture.
The line between consumer staples stocks and consumer discretionary stocks — shares of companies that sell “wants” such as designer clothing and luxury furniture — is blurry at times. Many retailers operate in both sectors at once.
But fundamentally, consumer staples stocks are companies that make most of their money selling things that people can’t live without. And advisors say that they may be more inflation-resistant than other sectors.
“In the case of a broad inflationary environment, core industries like food and medicine would do better, because they tend to be kind of inflation-proof. People still need to eat and see doctors,” says Satoru Asato, a Minneapolis-based certified financial planner.
Top 7 consumer staples stocks by one-year performance
Below is a list of the seven best-performing consumer staples stocks in the S&P 500 index, ordered by one-year returns.
Ticker | Company | Performance (Year) |
|---|---|---|
COST | Costco Wholesale Corp | 61.15% |
K | Kellanova Co | 59.31% |
WMT | Walmart Inc | 49.55% |
PM | Philip Morris International Inc | 46.78% |
CLX | Clorox Co | 41.37% |
TGT | Target Corp | 37.70% |
MO | Altria Group Inc | 35.01% |
Source: Finviz. Data is current as of market close Nov. 1, 2024, and is intended for informational purposes only.
How to buy consumer staples stocks
If you’re completely new to investing, you’ll need to open a brokerage account in order to buy consumer staples stocks. Then you’ll need to choose between investing in individual stocks or consumer staples exchange-traded funds (ETFs).
Individual consumer staples stocks have some potential appeal to investors. Many pay dividends, and a few in the table above are outperforming the S&P 500 index over the last year.
But if you’re just looking to get some exposure to consumer staples stocks as a hedge against high inflation, you can also consider the more diversified approach of investing in dozens of consumer staples stocks simultaneously through a consumer staples ETF.
Neither the author nor editor owned positions in the aforementioned investments at the time of publication.
On a similar note...
