In this article, we will look at the 10 Best Consumer Staples Stocks to Buy According to Analysts.
Is the US Economy Headed for a Recession?
Consumer confidence is plunging in the US. It dropped further in March, with the Conference Board reporting the future outlook falling to the lowest level in more than a decade. The Conference Board’s monthly confidence index dropped to 92.9, reflecting a 7.2-point slip and making March the fourth consecutive month of index contraction. The index calculates respondents’ outlook on job prospects, business, and income. The fall was higher than analyst estimates, as economists surveyed by Dow Jones estimated a reading of 93.5.
That is not all: the measure for future estimates is painting an even bleaker story with the index falling to 65.2, reflecting a 9.6-point drop and making it the lowest number in 12 years. The reading is also considerably below the 80 level, which is typically considered a benchmark signal for an incoming recession.
While the confidence drop was spread across income groups, it was primarily driven by a decline in consumers aged 55 or older. These readings are materializing at a time uncertainty and concerns regarding President Trump’s tariffs are already looming on the market. These concerns have coincided with other surveys exhibiting waning consumer sentiment and a volatile stock market. CNBC reported that Stephanie Guichard, senior economist, global indicators at The Conference Board, said the following about the situation:
“Consumers’ optimism about future income — which had held up quite strongly in the past few months — largely vanished, suggesting worries about the economy and labor market have started to spread into consumers’ assessments of their personal situations.”
On March 14, CNBC reported that while headwinds like persistent inflation and high interest rates were already affecting companies, they now have to deal with additional obstacles such as worsening consumer sentiment, tariffs that go on and off, and mass government layoffs. Over the last weeks, investor presentations and earnings calls have shown a distinct trend: consumer-facing businesses and retailers are warning that fiscal Q1 2025 sales are coming in softer than expected. 2025 may prove to be a year tougher than what analysts initially estimated.
READ ALSO: 11 Best Coffee Stocks to Buy Now and 10 Best Department Store Stocks to Invest in.
Consumer Staples: Are They a Safe Haven Amid Recession Concerns?
Consumer staples are generally considered a safe haven amid recession and market volatility. We discussed how the consumer staple sector is expected to perform and whether it can be considered a safety net amid the current market dynamics in a recently published article on 12 Best Household Stocks to Buy According to Hedge Funds. Here is an excerpt from the article to shed light on the situation:
“On March 21, Bryan Spillane, Bank of America Securities’ senior food and beverage analyst, appeared on CNBC’s ‘The Exchange’ to discuss things across his space and the trends surrounding consumer staples. He said that going through the first quarter of the year and having check-ins with companies has led him to conclude that the conditions in the sector have been soft, which is true across his entire coverage universe. Consumers are pulling back a bit, and there’s uncertainty surrounding the conditions in the sector. What’s surprising is that these trends started in January and extended through the first quarter.
The sector, however, is showing a dichotomy. Spillane believed this is a market for consumer staples, as we are looking for defensiveness and certainty. But at the same time, we are doing that at a time when the fundamentals appear to be decelerating. This creates a dynamic for investors to really understand the market and where it would be best to put their money in, as not all seem as safe as they would typically be.
These trends have resulted in concerns about whether staples would be less of a safe haven this time around. Addressing these concerns, Spillane said that staples would still be a safe haven if we consider them relative to the world we are living in. Large liquid consumer staples are still a place investors would want to be if they are looking for a place to hide in uncertainty, as they are likely to generate considerable cash flows and pay dividends.”
With these reassuring trends for the consumer staples sector in mind, let’s look at the 10 best consumer staple stocks to buy according to analysts.
A B2B food distributor making sure grocery shelves are fully stocked with food.
Our Methodology
We sifted through stock screeners, financial media reports, and ETFs to compile a list of 40 consumer staple stocks popular among hedge funds and selected the top 10 with the highest analyst upside potential as of March 28, 2025. We also added the number of hedge fund holders for each stock, as of Q4 2024. The list is ordered in ascending order of analyst upside potential. We sourced the hedge fund sentiment data from Insider Monkey’s database.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Consumer Staples Stocks to Buy According to Analysts
10. PepsiCo, Inc. (NASDAQ:PEP)
Analyst Upside: 10.33%
Number of Hedge Fund Holders: 69
PepsiCo, Inc. (NASDAQ:PEP) manufactures, markets, distributes, and sells beverages, food, and snacks. The company operates in the following segments: Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), PepsiCo Beverages North America (PBNA), Latin America (LatAm), Europe, Africa, Middle East, and South Asia (AMESA), and Asia Pacific, Australia and New Zealand, and China Region (APAC).
PepsiCo, Inc. (NASDAQ:PEP) has a strong cash position and generated $12.5 billion in operating cash flow during fiscal year 2024. The company also maintained steady revenue of $91.8 billion, a slight increase from last year. It plans to return approximately $7.6 billion to shareholders in this fiscal year through dividend payments.
Operating profit also rose from $11.9 billion in fiscal year 2023 to $12.8 billion, while net income improved by reaching $9.6 billion. For 2025, PepsiCo, Inc. (NASDAQ:PEP) expects low-single-digit organic revenue growth and mid-single-digit growth in core constant currency earnings per share (EPS). It takes the tenth spot on our list of the 10 best consumer staples stocks to buy according to analysts.
9. Albertsons Companies, Inc. (NYSE:ACI)
Analyst Upside: 11.06%
Number of Hedge Fund Holders: 70
Albertsons Companies, Inc. (NYSE:ACI) is a US-based food and drug retailer. It has over 2,269 stores across 34 states and the District of Columbia under 20 banners, including Star Market, Shaw’s, Albertsons, Kings Food Markets, United Supermarkets, Haggen, Kings Food Markets, Acme, Carrs, and more.
On March 13, RBC Capital analyst Steven Shemesh raised the firm’s price target on Albertsons Companies, Inc. (NYSE:ACI) to $23 from $22, keeping an Outperform rating on the shares. The analyst told investors in a research note that the firm continues to believe in the margin opportunity.
Albertsons Companies, Inc. (NYSE:ACI) reported strong performance across all metrics, with 2024 results ahead of its expectations and guidance. Total revenue grew by 10% over 2023, above the company’s upper single-digit longer-term forecast. Its adjusted EBITDA grew 18% in 2024, while its adjusted net EBITDA margin of 41% expanded more than 300 basis points. These trends reflect the inherent leverage in Albertsons Companies, Inc.’s (NYSE:ACI) software model. Cash flow generation also remains strong for the company, with cash flow from operating activities reaching $359 million in 2024, more than double the previous year. The company takes the ninth spot on our list of the top consumer staples stocks to buy now.
8. The Procter & Gamble Company (NYSE:PG)
Analyst Upside: 11.06%
Number of Hedge Fund Holders: 79
The Procter & Gamble Company (NYSE:PG) provides branded consumer packaged goods to consumers across the globe. Its operations are divided into Fabric & Home Care, Grooming, Beauty, Health Care, Feminine & Family Care, and Baby. The company boasts a strong portfolio of brands, which includes reputable names such as Head & Shoulders, Pantene, Old Spice, Olay, Herbal Essences, Safeguard, Tide, Always, Venus, Oral-B, Ariel, Crest, Tampax, and others.
The Procter & Gamble Company (NYSE:PG) sells its products in around 180 countries and territories. The company operates a long list of industry-leading brands across key consumer staples categories, which lends it a significant competitive advantage. Over the last decade, it has returned around $147.8 billion to shareholders: $67.9 billion through share buybacks and $79.9 billion via dividends. This reflects its strong model of operation.
On March 17, Erste Group analyst Stephan Lingnau upgraded the company to Buy from Hold and reiterated its growth forecast, expected annual earnings per share, and anticipated sales growth of around 2% to 4%. According to Erste, the stock is attractively valued compared to the sector.
The Procter & Gamble Company (NYSE:PG) also has a strong innovation pipeline and is leveraging AI and advanced technologies to optimize media buying, advertising development, and supply chain operations. The Wall Street Journal’s Natasha Khan and Sharon Terlep report showed that the company overtook Unilever by focusing on its largest brands and improving their efficacy. The Procter & Gamble Company (NYSE:PG) is in the strongest position to weather a turbulent year among its competitors, according to the report.
7. The Coca-Cola Company (NYSE:KO)
Analyst Upside: 11.40%
Number of Hedge Fund Holders: 81
The Coca-Cola Company (NYSE:KO) manufactures and markets non-alcoholic beverages. It has a range of water, sports, coffee, and tea brands, including Costa Coffee, Georgia Coffee, Gold Peak Tea, Fuze Tea, and more.
The company holds 28% of the global market value in its non-alcoholic, ready-to-drink beverages categories, lending it a significant market position. It has a global presence and yet holds a considerable opportunity to capture market share, especially in the non-developed global regions. The Coca-Cola Company (NYSE:KO) recently announced its 63rd consecutive annual quarterly dividend increase of 5.2%, from $0.49 to $0.52.
In a report released on March 19, Robert Moskow from TD Cowen maintained a Buy rating on The Coca-Cola Company (NYSE:KO), with a price target of $78.00. He said the company holds a competitive edge due to its robust relationships with bottlers and effective marketing and procurement strategies. In addition, The Coca-Cola Company’s (NYSE:KO) focus on digitalization and enhancing bottler communication has bolstered its operational efficiency, further supporting the analysts’ bullish outlook on the stock. It ranks seventh on our list of the best consumer staples stocks to buy according to analysts.
6. Dollar Tree, Inc. (NASDAQ:DLTR)
Analyst Upside: 14.87%
Number of Hedge Fund Holders: 64
Dollar Tree, Inc. (NASDAQ:DLTR) operates discount department stores and offers a wide range of merchandise under the business segments Dollar Tree and Family Dollar. Dollar Tree stores offer consumable merchandise, seasonal goods, and variety merchandise. The Family Dollar segment is a general merchandise retail discount store offering affordable merchandise in convenient neighborhood locations.
The company is set to close the sale of its Family Dollar segment by the end of this year, allowing it to focus on Dollar Tree’s long-term growth, profitability, and returns on capital. To continue its expansion program in fiscal Q4 2024, it opened 33 new Dollar Tree stores, bringing the total number of full-year openings to 525. Dollar Tree, Inc. (NASDAQ:DLTR) ended the fiscal year 2024 with around 2,900 Dollar Tree 3.0 multi-price format stores, including 2,600 conversions and 300 new stores.
In addition, Dollar Tree, Inc. (NASDAQ:DLTR) generated $2.2 billion of net cash provided by operating activities of continuing operations, along with $893 million in free cash flow from continuing operations. According to analysts, it is the sixth best consumer staples stock to buy now. In a report released on March 7, Edward Kelly from Wells Fargo maintained a Buy rating on Dollar Tree, Inc. (NASDAQ:DLTR), with a price target of $85.00.
5. The Clorox Company (NYSE:CLX)
Analyst Upside: 15.40%
Number of Hedge Fund Holders: 54
The Clorox Company (NYSE:CLX) is a multinational marketer and professional and consumer goods manufacturer. It operates through four segments: Household, Health and Wellness, Lifestyle, and International. The Health and Wellness segment comprises cleaning, disinfecting, and professional products sold and marketed under various brands. The company’s International segment comprises products sold outside the US, and includes products such as laundry additives, home care products, and more.
The Clorox Company (NYSE:CLX) expects increased advertising in H2 2025 compared to H1. This aggressive promotion and advertising spending, even during a period of increased expenses, reflects the company’s confidence in its new product launches and robust brand portfolio. The company has a 3.3% dividend yield and has had 40 consecutive years of dividend raises.
By investing in top brands, The Clorox Company (NYSE:CLX) has been focused on margin improvement instead of revenue growth. Fiscal Q2 2025 marked the ninth consecutive quarter of gross margin expansion for the company. For the full fiscal year, it is anticipating organic sales growth of around 3% to 5% and gross margin expansion of 125 to 150 basis points. The company takes the fifth spot on our list of the best consumer staples stocks to buy according to analysts.
4. Keurig Dr. Pepper Inc. (NASDAQ:KDP)
Analyst Upside: 15.97%
Number of Hedge Fund Holders: 39
Keurig Dr. Pepper Inc. (NASDAQ:KDP) manufactures, markets, distributes, and sells non-alcoholic beverages. It operates through the following segments: US Refreshment Beverages, US Coffee, and International. The US Coffee segment covers single-serve brewers, specialty, hot and iced varieties, and ready-to-drink beverages. The company also offers ready-to-brew coffee pods, makers, and accessories.
On March 20, Citi analyst Filippo Falorni moved Keurig Dr. Pepper Inc. (NASDAQ:KDP) to the firm’s top pick in the beverages, household and personal care group. The firm shifted its choices to names “that are posting better near-term trends, have idiosyncratic opportunities, and have a lower valuation level.”
The company reported adjusted EPS of $0.58 in fiscal Q4 2024, surpassing analyst estimates of $0.57. Net sales grew to $4.07 billion, also ahead of the projected $4.02 billion. Although Keurig Dr. Pepper Inc. (NASDAQ:KDP) faced some headwinds in its US coffee segment, fiscal Q4 2024 marked strong revenue growth, attributed to the US refreshment beverages segment. It ranks as the fourth best consumer staples stock on our list.
3. Costco Wholesale Corporation (NASDAQ:COST)
Analyst Upside: 17.50%
Number of Hedge Fund Holders: 96
Costco Wholesale Corporation (NASDAQ:COST) operates membership-only big box warehouse club stores and is one of the most popular department stores in the US. It offers its customers an extensive collection of value furniture, electronics, clothing, consumables, and more. Costco Wholesale Corporation (NASDAQ:COST) is one of the most resilient retailers in the sector, and its membership fees are pivotal to its profit generation. In fiscal 2024, the company made $4.8 billion in membership fees. It recently increased its base membership fee to $65, which will be reflected in the current fiscal year’s earnings. Its paid members have also grown by 7% annually over the last two years.
Despite weakening consumer sentiment and inflation, Costco Wholesale Corporation (NASDAQ:COST) delivered strong comparable sales in fiscal Q2 2025, rising 9.1% (excluding fuel prices and currency exchange) and reflecting strong demand for its offerings. The company’s e-commerce sales also grew by 22.2%, demonstrating strong consumer appetite.
Costco Wholesale Corporation (NASDAQ:COST) is also continually expanding its operations, ending fiscal Q2 2025 with 897 warehouses. It added 29 stores last year, expanding its store base by roughly 3%. On March 21, Stifel Nicolaus analyst Mark Astrachan maintained a Buy rating on the company and set a price target of $1,035.00.
2. Constellation Brands, Inc. (NYSE:STZ)
Analyst Upside: 21.12%
Number of Hedge Fund Holders: 51
Constellation Brands, Inc. (NYSE:STZ) produces, markets, and distributes wine, beer, and spirits. It operates through the Beer, Wine, Spirits, Corporate Operations and Other, and Canopy segments. The company’s core business is supported by its dominant beer brands, including Corona, Modelo, and Pacifico. Strong consumer loyalty for these brands, a significant market position, and a resilient consumer base lend the company a notable competitive advantage. Its beer business reported sustained momentum in fiscal Q3 2025, with net sales rising 3% during the quarter, supported by higher shipment volumes.
The company is focusing on expanding its distribution network and capitalizing on the rising Hispanic population in the US, which is why investors are bullish on the stock. In Q4 2024, Warren Buffett’s Berkshire Hathaway acquired over 5.6 million shares of Constellation Brands, Inc. (NYSE:STZ), with the stake worth roughly $1.24 billion at the end of the year, reflecting the firm’s confidence in the company.
In a report released on March 29, Robert Ottenstein from Evercore ISI maintained a Buy rating on the company with a price target of $225.00. It ranks second on our list of the best consumer staples stocks to buy according to analysts.
1. Walmart Inc. (NYSE:WMT)
Analyst Upside: 29.09%
Number of Hedge Fund Holders: 116
Walmart Inc. (NYSE:WMT) is an omnichannel retailer operating retail and wholesale stores, clubs, e-commerce websites, and mobile applications. It offers an elaborate array of items, from general merchandise and electronics to food, groceries, and more.
The company reported sales growth of 5.2% in fiscal Q4 2025, along with a 9.4% adjusted operating income growth in constant currency. Walmart Inc. (NYSE:WMT) is continually gaining market share across income levels and countries. Unit volumes and transaction counts were up across all its markets in the year’s first three quarters, reflecting its healthy top line. The company’s prices are low, and it is becoming increasingly convenient, resulting in its growing popularity.
In February, Walmart Inc. (NYSE:WMT) Canada announced plans to spend $4.51 billion on new stores, reflecting supply-chain expansion. As part of the initiative, the company plans to open dozens of stores nationwide, starting with opening five supercenters in Ontario and Alberta by 2027, two of which are set to open this year. In a report released on March 20, Mark Astrachan from Stifel Nicolaus maintained a Buy rating on Walmart Inc. (NYSE:WMT), with a price target of $93.00. Its median price target of $87.04 implies an upside of 26.38% from current levels.
Overall, WMT ranks first among the 10 best consumer staples stocks to buy according to analysts. While we acknowledge the potential of consumer staples stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WMT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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