Regarded as defensive investments, consumer staples stocks are generally safe bets in choppy markets. 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 5.4%, a far cry from the S&P 500’s 6.2% ascent.
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Taking that into account, here is one resilient consumer stock we’ve added to our cart and two that may face trouble.
Two Consumer Staples Stocks to Sell:
Molson Coors (TAP)
Market Cap: $7.68 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 Do We Steer Clear of TAP?
- Declining unit sales over the past two years imply it may need to invest in product improvements to get back on track
- Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 34.6 percentage points
- Underwhelming 0.6% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its falling returns suggest its earlier profit pools are drying up
Molson Coors’s stock price of $40.95 implies a valuation ratio of 8.8x forward P/E. If you’re considering TAP for your portfolio, see our FREE research report to learn more.
Energizer (ENR)
Market Cap: $1.44 billion
Masterminds behind the viral Energizer Bunny mascot, Energizer (NYSE: ENR) is one of the world's largest manufacturers of batteries.
Why Does ENR Give Us Pause?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Projected sales for the next 12 months are flat and suggest demand will be subdued
- High net-debt-to-EBITDA ratio of 5× increases the risk of forced asset sales or dilutive financing if operational performance weakens
Energizer is trading at $21 per share, or 6.2x forward P/E. Read our free research report to see why you should think twice about including ENR in your portfolio.
One Consumer Staples Stock to Watch:
Inter Parfums (IPAR)
Market Cap: $3.92 billion
With licenses to produce colognes and perfumes under brands such as Kate Spade, Van Cleef & Arpels, and Abercrombie & Fitch, Inter Parfums (NASDAQ: IPAR) manufactures and distributes fragrances worldwide.
Why Should IPAR Be on Your Watchlist?
- Unique products and pricing power are reflected in its stellar gross margin of 59.7%
- IPAR is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
At $122.55 per share, Inter Parfums trades at 23.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
