1 Consumer Stock to Target This Week and 2 Facing Challenges

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 -4.3% decline paled in comparison to the S&P 500’s 5.1% gain.

Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. Taking that into account, here is one consumer stock poised to generate sustainable market-beating returns and two we’re passing on.

Two Consumer Staples Stocks to Sell:

J. M. Smucker (SJM)

Market Cap: $12.24 billion

Best known for its fruit jams and spreads, J.M Smucker (NYSE:SJM) is a packaged foods company whose products span from peanut butter and coffee to pet food.

Why Should You Sell SJM?

1. Flat unit sales over the past two years imply it may need to invest in product improvements to get back on track
2. Efficiency has decreased over the last year as its operating margin fell by 11.4 percentage points
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its shrinking returns suggest its past profit sources are losing steam

At $114.24 per share, J. M. Smucker trades at 11.1x forward P/E. If you’re considering SJM for your portfolio, see our FREE research report to learn more.

Nature's Sunshine (NATR)

Market Cap: $474.1 million

Started on a kitchen table in Utah, Nature’s Sunshine (NASDAQ:NATR) manufactures and sells nutritional and personal care products.

Why Are We Hesitant About NATR?

1. Lackluster 2.8% annual revenue growth over the last three years indicates the company is losing ground to competitors
2. Subscale operations are evident in its revenue base of $474.5 million, meaning it has fewer distribution channels than its larger rivals
3. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.1%

Nature's Sunshine’s stock price of $27.14 implies a valuation ratio of 29.2x forward P/E. Read our free research report to see why you should think twice about including NATR in your portfolio.

One Consumer Staples Stock to Buy:

Monster (MNST)

Market Cap: $76.9 billion

Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ:MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.

Why Will MNST Beat the Market?

1. Highly efficient business model is illustrated by its impressive 27.7% operating margin, and its operating leverage amplified its profits over the last year
2. Strong free cash flow margin of 23% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute
3. ROIC punches in at 35.7%, illustrating management’s expertise in identifying profitable investments, and its rising returns show it’s making even more lucrative bets

Monster is trading at $78.84 per share, or 34.9x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

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.