1 Consumer Stock with Impressive Fundamentals and 2 We Turn Down

Consumer staples stocks are solid insurance policies in frothy markets ripe for corrections. 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 -9.1% decline paled in comparison to the S&P 500’s 11.7% 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. Keeping that in mind, here is one consumer stock boasting a durable advantage and two best left ignored.

Two Consumer Staples Stocks to Sell:

Edgewell Personal Care (EPC)

Market Cap: $812.2 million

Boasting brands such as Banana Boat, Schick, and Skintimate, Edgewell Personal Care (NYSE:EPC) sells personal care products in the skin and sun care, shave, and feminine care categories.

Why Are We Out on EPC?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 4.5 percentage points
3. Capital intensity has ramped up over the last year as its free cash flow margin decreased by 5.9 percentage points

Edgewell Personal Care is trading at $17.49 per share, or 7.4x forward P/E. Dive into our free research report to see why there are better opportunities than EPC.

Keurig Dr Pepper (KDP)

Market Cap: $38.18 billion

Born out of a 2018 merger between Keurig Green Mountain and Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ:KDP) is a consumer staples powerhouse boasting a portfolio of beverages including sodas, coffees, and juices.

Why Does KDP Give Us Pause?

1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 5.8% over the last three years was below our standards for the consumer staples sector
2. Efficiency has decreased over the last year as its operating margin fell by 5.9 percentage points
3. Low returns on capital reflect management’s struggle to allocate funds effectively

At $28.09 per share, Keurig Dr Pepper trades at 13.2x forward P/E. To fully understand why you should be careful with KDP, check out our full research report (it’s free for active Edge members).

One Consumer Staples Stock to Buy:

Philip Morris (PM)

Market Cap: $250.7 billion

Founded in 1847, Philip Morris International (NYSE:PM) manufactures and sells a wide range of tobacco and nicotine-containing products, including cigarettes, heated tobacco products, and oral nicotine pouches.

Why Will PM Outperform?

1. Unit sales averaged 3% growth over the past two years and imply healthy demand for its products
2. Products command premium prices and result in a best-in-class gross margin of 65.6%
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Philip Morris’s stock price of $161.73 implies a valuation ratio of 20x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% 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.