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Here Are 5 Top Consumer Staple Stocks For You August Watchlist

July 30
10:19 2021

As we approach the end of July, consumer staples stocks are in focus in the stock market. For one thing, this could be due to several underwhelming updates on the state of the economy earlier today. Namely, both the U.S. gross domestic product (GDP) and initial unemployment claims missed expectations this week. The U.S. GDP rose at a 6.5% annualized rate, well below the Dow Jones estimate of 8.4%. Furthermore, weekly jobless claims came in at 400,000, above the 380,000 estimation. Overall, some would argue that all of this indicates a potential slowdown in the current red-hot economy. As such, consumer staples, whose offerings are in demand in good times and bad, would be gaining traction.

When you pair this with the mentions of another wave of coronavirus cases, I can understand the shift in focus. For one thing, consumer staples will likely continue to cater to the needs of consumers. Companies such as Kroger (NYSE: KR) and Walmart (NYSE: WMT) would be notable names to know in the stock market today. Even now, these companies are finding ways to expand their current revenue streams. Specifically, Walmart is now marketing its e-commerce tech to small-and medium-sized retailers through a collaboration with Adobe (NASDAQ: ADBE). As you can see, even the consumer staples space remains active now. With that said, could one of these companies be a good investment now?

Best Consumer Staples Stocks To Watch Right Now

Yum! Brands Inc.

Yum! Brands is a consumer staple stock that has over 50,000 restaurants in more than 150 countries and territories. It is the face behind many popular brands like KFC, Pizza Hut, and Taco Bell. The company’s family of brands also includes The Habit Burger Grill, a fast-casual restaurant concept specializing in made-to-order chargrilled burgers, sandwiches, and more. YUM stock closed Thursday’s trading session at $130.31 a share.

Today, the company reported impressive second-quarter results. Firstly, worldwide system sales grew by 26%, with strong double-digit growth in KFC and Taco Bell. Yum! also posted total revenue of $1.60 billion. On top of that, the company posted diluted earnings per share of $1.29, increasing by 91% year-over-year. Yum! says that its strong results are led by record unit development and same-store sales growth. The resilience of its diversified global business positions it perfectly to drive growth and could provide value creation for its stakeholders. All things considered, will you be watching YUM stock right now?

YUM stock
Source: TD Ameritrade TOS

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