1 Consumer Stock to Research Further and 2 We Avoid

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 -8.1% decline paled in comparison to the S&P 500’s 10.4% gain.

The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Keeping that in mind, here is one consumer stock boasting a durable advantage and two we’re passing on.

Two Consumer Staples Stocks to Sell:

Pilgrim's Pride (PPC)

Market Cap: $9.21 billion

Offering everything from pre-marinated to frozen chicken, Pilgrim’s Pride (NASDAQ:PPC) produces, processes, and distributes chicken products to retailers and food service customers.

Why Should You Sell PPC?

1. Sizable revenue base leads to growth challenges as its 1.8% annual revenue increases over the last three years fell short of other consumer staples companies
2. Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
3. Easily substituted products (and therefore stiff competition) result in an inferior gross margin of 12.5% that must be offset through higher volumes

Pilgrim's Pride’s stock price of $38.63 implies a valuation ratio of 9.3x forward P/E. Check out our free in-depth research report to learn more about why PPC doesn’t pass our bar.

United Natural Foods (UNFI)

Market Cap: $1.98 billion

With a vast network of 55 distribution centers spanning approximately 30 million square feet of warehouse space, United Natural Foods (NYSE:UNFI) is North America's premier grocery wholesaler distributing natural, organic, and conventional products to over 30,000 retail locations across the US and Canada.

Why Are We Out on UNFI?

1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 2.5% over the last three years was below our standards for the consumer staples sector
2. Performance over the past three years shows its incremental sales were much less profitable, as its earnings per share fell by 37.9% annually
3. 6× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

United Natural Foods is trading at $32.62 per share, or 14.8x forward P/E. If you’re considering UNFI for your portfolio, see our FREE research report to learn more.

One Consumer Staples Stock to Watch:

Altria (MO)

Market Cap: $96.57 billion

Best known for its Marlboro brand of cigarettes, Altria (NYSE:MO) offers tobacco and nicotine products.

Why Does MO Stand Out?

1. Differentiated product offerings are difficult to replicate at scale and result in a best-in-class gross margin of 70.9%
2. Healthy operating margin of 55% shows it’s a well-run company with efficient processes
3. Strong free cash flow margin of 43.6% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business

At $57.49 per share, Altria trades at 10.1x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. 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.