3 Rising Stocks In Consumer Goods & Services

We’ve all got a tendency to gravitate toward the big-name stocks, the tech giants like Amazon or Apple or Facebook or Google, that are raking in the cash and bringing big returns to investors. But what about the bread-and-butter companies, those shares in companies that provide us with the everyday things that we just need? They don’t get the headlines, but they do have solid foundations in the marketplace and some are good performers in the stock markets.

Costco 

The world’s second-largest retailer (only Walmart is bigger), Costco (COST – Research Report) is a leader in big box warehouse membership stores. Costco stores sell everything from quality beef and chicken to top shelf wine to automotive parts, eyeglasses, and home furnishings. Members can benefit from discount prices on bulk purchases, while the company is known for its generous employee benefit packages.

Costco’s stock reflects the strength of its business model. The stock price stands at $224.17 today, and the analyst consensus is a ‘Strong Buy’ with a 10% average upside and a target price of $247. RBC Capital’s Scot Ciccarelli (Track Record & Rating) notes that Costco is feeling pressure from higher gasoline prices, but is still posting “some of the best traffic growth in retail.” Oppenheimer’s Rupesh Parikh (Track Record & Rating) agrees, seeing prospects for continued healthy momentum. He sees an opportunity to buy, as the stock price has pulled back slightly from its recent high point.

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See COST Price Target and Analyst Ratings Detail.

Nike 

Who doesn’t need comfortable shoes? Nike (NKE – Research Report) is best known for its footwear, but the company produces and markets a wide range of athletic apparel. It’s also well known for its highly successful marketing – the Nike ‘swoosh’ is instantly recognizable around the world and is one of the few corporate logos that doesn’t need text.

Nike currently has a ‘Moderate Buy’ rating by analyst consensus, with a stock price of $80 and an average target of $91 for a 13% upside. The stock has been rising consistently for the last year, gaining 60% year-over-year. According to Nomura analyst Simeon Siegel (Track Record & Rating), there is plenty to like about Nike: Unit sales of footwear have shown the highest growth since 2016, and product stockpiles are down on rising sales. Meanwhile, Jonathan Komp (Track Record & Rating), of Baird, notes that Nike had a solid first quarter, has shown a recent gain in price, and points out that post-earnings pullbacks are a buying opportunity for investors.

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See NKE Price Target and Analyst Ratings Detail.

Pepsi Co 

Pepsi (PEP – Research Report), best known as the main competitor to Coca Cola, is also the parent company of a range of popular beverage and snack brands, Tropicana and Quaker Oats. The company plans to steer its beverage line in a healthier direction, and to that end has announced plans to acquire Israeli home soda maker SodaStream by this coming January.

Pepsi’s stock, like Nike, has an analyst consensus of ‘Moderate Buy.’ Its price target is $115, a 6.4% upside from its current price of $108. Pepsi has shown more volatility than Costco or Nike, with ups and downs this year, but on the longer time-horizon – 3 to 5 years – has shown steady gains. Since October 2015, Pepsi has added 21% to its share price. According to Susquehannah analyst Pablo Zuanic (Track Record & Rating), Pepsi stock has benefited recently from beating the sales expectations and aggressive marketing. He sets the price target at $135.

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See PEP Price Target and Analyst Ratings Detail.

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