Wall Street Analysts Recommend 3 Stocks for Consumer Staples Under $33
In the current market volatility, which is characterized by high inflation and fears of recession, it seems prudent to invest in safe havens at lower prices. The Consumer Staples sector is a good choice for safe areas. It’s also known as the defensive spot.
Because demand for staple goods remains stable, the sector is well-positioned even in economic downturns or market turmoil. Investors have always found this sector to be a good place to invest, since it provides growth regardless of economic conditions. Notably, the Zacks Consumer Staples sector has rallied close to 12% in the past three months, outperforming the S&P 500’s gain of around 5%.
We believe the sector remains well placed for 2023 on the back of favorable demand and companies’ constant focus on undertaking innovation and other brand-building efforts to make the most of it. Companies (including food and beverage players) have been particularly investing in healthy offerings, given consumers’ rising inclination toward health and wellness (all the more since the pandemic).
Consumer staple companies aren’t immune to inflationary headwinds such as hard labor markets and high input costs. However, the players in this space have taken strong pricing measures to combat these issues. Solid savings, restructuring, and productivity measures have all been successful.
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Take a look at our Picks
As we approach 2023, it seems a smart idea to invest in Consumer Staple stock at a low price. It’s even safer to follow Wall Street advice.
We highlighted three Consumer Staple stocks using the Zacks Stock Screener. These stocks have strong fundamentals and are well-positioned in the New Year for growth. These stocks are priced below $3 and carry an average brokerage (ABR) recommendation of <=2. These stocks also have a Zacks rank 1 (Strong Buy), or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Three Great Choices
Yield10 Bioscience, Inc. YTEN is a Zacks Rank #2. Currently trading at $1.74 it has an ABR value of 1. These analyst projections suggest that the average price target for the stock will be $12.25. This would indicate a 512.5% upside from its current closing price. The company’s prospects look bright, given the favorable demand for low-carbon index feedstock oil for biofuels. To this end, Yield10 Bioscience’s focus on developing and commercializing Camelina as a new industrial crop bodes well. YTEN has taken strong market development steps to support expansion.
Yield10 Bioscience works to develop enhanced oilseed Camelina Saativa and produce proprietary seed products. They also research high-value genetic varieties for agriculture and food space. The Zacks Consensus Estimate for YTEN’s 2023 bottom line has improved from a loss of $1.98 per share to a loss of $1.84 over the past 60 days, indicating 30.8% growth year over year.
The Alkaline Water Company Inc. WTER produces, distributes and markets bottled alkaline waters. The company’s Pathway to Profitability strategy has been working well. Due to its strong brand image within the beverage category, The Alkaline Water Company has seen continued growth in the retail channel. On its last earnings call, management stated that it remains encouraged and positive about YTEN’s prospects.
The Alkaline Water Company’s 2023 bottom line has improved from a loss of 11 cents per share to a loss of 9 cents in the past 60 days, indicating 52.6% growth year over year. The current price is 16.73 cents. It has an ABR (average broker rate) of 1.00. This scales from 1 to 5. These analyst projections indicate that we anticipate a price target of $1.50 on a scale from 1 to 5. Based on these projections, there is 733.3% upside to the closing price.
Benson Hill, Inc. BHIL is worth a try. The food technology company’s Ingredients segment has been performing well. Management increased its full-year guidance for the Ingredients segment during its third quarter 2022 earnings conference, citing strong demand for non-proprietary ingredients soy and yellow-pea products. The company also raised its gross profit outlook due to the expected improvement in operating efficiency and top-line growth. The company’s focus on innovation keeps it well-positioned for growth.
BHIL trades at $2.23 and has an ABR value of 1.00. This is on a scale 1-5. According to analyst estimates, BHIL has an ABR of 1.00 on a scale from 1 to 5. The Zacks Consensus Estimate for Benson Hill’s 2023 bottom line has improved from a loss of 76 cents per share to a loss of 63 cents in the past 60 days.
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Alkaline Water Company Inc. (WTER) : Free Stock Analysis Report
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