3 Consumer Staples Stocks Marching Ahead Of The Industry

Traditionally, the Consumer Staples sector has always been a safe haven for investors who are apprehensive about a volatile and uncertain market. However, for now, all seems well on the domestic front with steady increase in gasoline prices, improving employment picture, rising consumer confidence along with recovery in the housing and manufacturing sectors.

Despite the aforementioned positive factors, the U.S. economy is not fully immune to global uncertainties, which could limit growth potential. Further, it remains to be seen how Trump’s revolutionary ideas are going to impact the economy.   

We noted that the Zacks categorized Consumer Staples sector has not clocked a significant gain so far in the year, witnessing a meager increase of 1.6%. In fact, it has declined 6.3% in the past three months. However, there are few stocks which have outperformed the sector by a considerable margin. These stocks backed by efficient pricing, cost saving initiatives, lucrative acquisitions and robust product portfolio are well on track to growth.

Here we have highlighted three Consumer Staples stocks, which outperformed the sector and have gained more than 10% in the last three months. Further, these stocks carry a VGM score of either ‘A’ or ‘B’ along with a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Dean Foods Company (DF - Free Report)

The Dallas, TX-based processor and distributor of fresh milk and other dairy products have gained 34.2% in the last three months. The stock has an expected earnings growth rate of 12% and a VGM Score of “A.” Moreover, the stock looks attractive from the view point of P/E multiple of 13.6, which is lower than the industry ratio of 18.8x. The stock flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here..

Sysco Corporation (SYY - Free Report)

The shares of this North American distributor of food products with a VGM Score of “B” and Zacks Rank #2 have soared over 14.7% in the past three months. In fact, the shares of the company have gained a whopping 37.2% so far this year. The stock has a long-term earnings growth rate of 8.8%. The company posted a positive surprise of 13.6% in third-quarter fiscal 2016. Further, it has reported earnings beat in all the trailing four quarters with an average positive surprise of 11.7%.

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