1 Consumer Stock for Long-Term Investors and 2 We Turn Down

Consumer staples are considered safe havens in turbulent markets due to their inelastic demand profiles. On the other hand, they usually underperform during bull runs, and this paradigm has rung true over the past six months as the sector’s -5.7% decline paled in comparison to the S&P 500’s 5.7% gain.

Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. Taking that into account, here is one consumer stock poised to generate sustainable market-beating returns and two best left ignored.

Two Consumer Staples Stocks to Sell:

Spectrum Brands (SPB)

Market Cap: $1.31 billion

A leader in multiple consumer product categories, Spectrum Brands (NYSE:SPB) is a diversified company with a portfolio of trusted brands spanning home appliances, garden care, personal care, and pet care.

Why Should You Sell SPB?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
3. Cash burn makes us question whether it can achieve sustainable long-term growth

Spectrum Brands is trading at $53.51 per share, or 10.1x forward P/E. Dive into our free research report to see why there are better opportunities than SPB.

Campbell's (CPB)

Market Cap: $9.52 billion

With its iconic canned soup as its cornerstone product, Campbell's (NASDAQ:CPB) is a packaged food company with an illustrious portfolio of brands.

Why Are We Hesitant About CPB?

1. Falling unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
2. Projected sales are flat for the next 12 months, implying demand will slow from its three-year trend
3. Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 3.6 percentage points

At $31.76 per share, Campbell's trades at 10.5x forward P/E. To fully understand why you should be careful with CPB, check out our full research report (it’s free).

One Consumer Staples Stock to Buy:

BellRing Brands (BRBR)

Market Cap: $6.93 billion

Spun out of Post Holdings in 2019, Bellring Brands (NYSE:BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands.

Why Will BRBR Beat the Market?

1. Unit sales were phenomenal over the past two years, showing demand is robust and retailers can’t stock enough of its products
2. Earnings per share grew by 28% annually over the last three years and trumped its peers
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

BellRing Brands’s stock price of $54.58 implies a valuation ratio of 22.9x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

Stocks We Like Even More

When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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