In this article, we will take a look at some of the best penny stocks across the consumer staples space.
On April 10, CNBC reported that consumer sentiment plunged to its lowest level in April, fueled by concerns about high inflation amid the ongoing conflict in the Middle East. As per a survey conducted by the University of Michigan, the geopolitical tensions have led to a sharp jump in energy and commodity prices. This caused the university’s headline consumer sentiment index to tumble to 47.6, a 10.7% drop compared to the prior month, also marking the lowest figure on record.
However, Joanne Hsu, the survey’s director, noted that these results are based on data collected prior to the ceasefire announced on April 7. Hence, there is a possibility of a reversal of the trend in the coming weeks as the peace talks advance.
Back in mid-March, the Managing Director from RBC Capital Markets, Nik Modi, reflected on how the ongoing situation could adversely affect the pricing power of many consumer staples businesses. Despite some short-term contractual hedges that these companies possess, they will eventually come under pressure due to higher operating costs. More importantly, it will be challenging for them to pass these costs on to the consumer in the current environment, where the companies are already exposed to volumetric pressure. Modi recommended a highly cautious approach in identifying consumer staples names that are more protected against such inflationary indicators.
With that background, let’s explore our 10 Best Consumer Staples Penny Stocks to Buy Now.
Our Methodology
To identify relevant stocks for this article, we screened U.S.-listed consumer staples companies with share prices below $5 and market capitalizations above $200 million. Also, we only shortlisted stocks with at least 10% upside potential, according to consensus, as of the April 17 close. Next, we selected 10 stocks with the highest upside and ranked them in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. Newell Brands Inc. (NASDAQ:NWL)
Newell Brands Inc. (NASDAQ:NWL) is one of the 10 best consumer staples penny stocks to buy now.
On April 16, Canaccord Genuity increased the price target on Newell Brands Inc. (NASDAQ:NWL) from $8 to $9, resulting in an adjusted upside potential of almost 108% at the prevailing level. The firm also maintained its Buy rating on the stock.
The price target adjustment was based on revisions to estimates before the first-quarter earnings. These incorporated analysis of sales data from Circana, Semrush searches, and social media engagement. Canaccord notes a good risk-to-reward ratio going into the earnings print, driven by strong Sharpie and Graco segments, better performance in Rubbermaid, and upside potential in the outdoor category.
Canaccord Genuity also highlighted Coleman’s new collapsible cooler as the top-selling product on Amazon. The rating supports the view that Newell Brands Inc. (NASDAQ:NWL) is currently one of the top penny stocks within the consumer staples category.
On April 9, RBC Capital reduced the price target on Newell Brands Inc. (NASDAQ:NWL) from $4.50 to $4 while reiterating a Sector Perform rating on the stock. The firm attributed this stance to the first-quarter earnings preview, which uncovered muted topline trends.
RBC Capital also noted inflationary pressures and rising commodity prices amid the Middle East conflict. Despite positive developments around the ceasefire, it anticipates the impact of such factors to persist in the foreseeable future.
Newell Brands Inc. (NASDAQ:NWL) designs, manufactures, and sells commercial and consumer goods. Its product portfolio includes cleaning and maintenance services, storage products, closet and garage organization goods, and vacuum sealing goods. It also offers stationery and art supplies, technical apparel, gourmet cookware and bakeware, labeling solutions, and baby care products.
9. Dingdong (Cayman) Ltd. (NYSE:DDL)
Dingdong (Cayman) Ltd. (NYSE:DDL) is one of the 10 best consumer staples penny stocks to buy now.
As of April 17 closing, Dingdong (Cayman) Ltd. (NYSE:DDL) received coverage from 2 analysts, both of whom assigned Buy ratings to the stock. With a median 1-year price target of $3.19, it offers an upside potential of almost 18% at the current level.
On March 27, Dingdong (Cayman) Ltd. (NYSE:DDL) held its 2026 Annual General Meeting, where all three proposals received shareholder approval and were duly passed as ordinary resolutions. The first proposal approved the sale of shares through the agreement with Two Hearts Investment Limited, a wholly owned subsidiary of Meituan, in relation to the sale of BVI Incorporated’s substantial assets of Dingdong in China.
The second proposal allowed the board to use not less than 90% of the cash proceeds from the transaction to buy back shares or make dividend distributions. The third proposal provided the board with general powers regarding the execution of necessary documentation and filings to finalize the sale.
Chairman Liang Changlin stressed that Dingdong would create more value on the bigger platform of Meituan owing to its strengths related to logistics, product creation, and operations efficiency. Changlin also assured that 90% of the sale proceeds would be distributed to shareholders as a longstanding practice of the company. All proposals were passed as ordinary shareholder resolutions.
Dingdong (Cayman) Ltd. (NYSE:DDL) is an e-commerce company that sells fresh groceries. It offers a variety of edible items like meat and eggs, fruits and vegetables, and seafood. It also sells ready-to-eat or cooked products, instant food, baked goods, dairy products, oil, and more.
8. Udemy Inc. (NASDAQ:UDMY)
Udemy Inc. (NASDAQ:UDMY) is one of the 10 best consumer staples penny stocks to buy now.
On April 9, Coursera Inc. (NYSE:COUR) and Udemy Inc. (NASDAQ:UDMY) shareholders voted in the majority to approve a merger between the two entities. The shareholders of Coursera voted by 99.4% to issue new shares for the acquisition. The voting at Udemy resulted in an almost unanimous decision of 99.9% in favor of adopting the merger agreement.
Fewer than 500,000 of the 228 million total votes cast were against the deal. The Coursera shareholders also agreed to increase the number of authorized shares to 600 million, twice the current amount of 300 million shares. The exchange will involve an offer of 0.8 shares of Coursera for every Udemy share, totaling roughly $1.7 billion in valuation. Potential synergies from this transaction bode well for Udemy Inc. (NASDAQ:UDMY) and support the argument that it is one of the top penny consumer staples picks.
Earlier on April 7, the company made an official announcement regarding the launch of a comprehensive end-to-end certification process that significantly leverages its dedicated Microsoft Certification (NASDAQ:MSFT) resources. This strategic development is primarily being driven by a new integration that enables students to buy over 50 different exam vouchers straight from the platform.
This rollout seamlessly complements the massive library of over 10,000 Microsoft courses the enterprise already hosts till day. Ultimately, this establishes a highly accessible route for users to effectively move from the practice of fundamental skills to practical application.
Udemy Inc. (NASDAQ:UDMY) is a learning company offering technology, business, soft skills, and personal development courses through its platform. The platform provides interactive learning tools, a Udemy AI assistant, and a natural chat language interface for learners. The company also offers flexible subscription plans, AI transformation services, and other end-to-end learning solutions, optionally with a Udemy Business Add On.
7. Krispy Kreme Inc. (NASDAQ:DNUT)
Krispy Kreme Inc. (NASDAQ:DNUT) is one of the 10 best consumer staples penny stocks to buy now.
On April 17, Krispy Kreme Inc. (NASDAQ:DNUT) signed an agreement with Jafa Holding BV to enter the Dutch market, where it is estimated that its first store would open in late 2026. This is a very important step for the company since it keeps expanding globally using its franchise business model, which has been quite light in terms of capital. Such global reach makes Krispy Kreme Inc. (NASDAQ:DNUT) stand out as one of the most appealing consumer-staples penny stocks.
Its first store in the Netherlands would also offer the unique Hot Light experience it is known for and serve as a manufacturing unit. Krispy Kreme plans on opening about 30 stores within the coming five years. Overall, the company plans on entering at least 3 or 4 international markets this year by opening over 100 stores.
The bullish views around the stock also stem from the company’s efforts to solidify its financial position. On March 25, Krispy Kreme Inc. (NASDAQ:DNUT) stated that it has reached a deal with its partner, the WKS Restaurant Group, to increase WKS’ stake in the joint venture in the western region of the country from 45% to 80%. The total value of this deal is estimated at about $90 million, out of which $50 million will be paid to DNUT initially in cash.
The proceeds from this deal will be used by Krispy Kreme to settle its debts. As part of the acquisition deal, the joint venture took over 23 additional shops in California and Hawaii that had previously been run by the company.
Krispy Kreme Inc. (NASDAQ:DNUT) is an international doughnut producer. The company is known for offering doughnut experiences through customized cabinets, hot light theatres, fresh shops, and in-store merchandising units. It also operates various company-owned stores and franchises.
6. Gaotu Techedu Inc. (NYSE:GOTU)
Gaotu Techedu Inc. (NYSE:GOTU) is one of the 10 best consumer staples penny stocks to buy now.
As of the close of play on April 17, the stock received a Buy rating from 4 of the 6 analysts covering it. With 1 Hold rating and 1 Sell rating, it carries a projected median 1-year target price of $3.69, leading to an impressive upside potential of almost 85% for investors.
During early March, Gaotu Techedu Inc. (NYSE:GOTU) Chief Financial Officer Nan Shen laid out the company’s earnings forecast, projecting the first quarter revenues to fall between 1,578 and 1,598 RMB. This indicates an increase of 5.7% to 7% in yearly growth rates. According to Shen, the increase in revenue is due to seasonality issues and will continue in the second quarter at a double-digit rate.
Expanding the offline learning centers has its share of problems. Some issues that Shen noted include the ability to manage staff effectively, proper coordination among different departments, and employing excellent teachers who are critical. The team is reviewing and tweaking things to keep growth on track despite these hurdles.
Gaotu Techedu Inc. (NYSE:GOTU) is a provider of educational content and digitalized learning goods and services. Its services include conventional learning services, non-academic learning, and consultation services for people who are planning to study abroad. It also offers course outlines, practice lessons, reading apps, AI-based writing assessment tools, and more.
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