In this article, we will explore the 10 Best Small-Cap Consumer Staples Stocks to Buy Under $30.
On March 13, Reuters took a close look at where U.S. consumer staples stocks stand right now, and the picture is more complicated than it seems. Earlier this year, the sector was a go-to refuge for investors stepping away from overvalued tech stocks. That rotation pushed valuations to their highest levels since 1999. But since hitting a record high in mid-February, cracks have started to appear.
The sector has shed 5.6% in March alone as tech and energy shares regained momentum. The concerns are real. Rising inflation expectations, geopolitical uncertainty, and shifting consumer habits, partly driven by the growing popularity of weight loss drugs, are all weighing on earnings. First-quarter earnings growth for the sector is now expected at just 1.9%, down sharply from the 6.6% forecast at the start of the year.
That said, not every name is struggling. Many companies have posted strong results and double-digit gains this year. The key for investors right now is to be selective, focusing on companies with actual earnings growth rather than chasing a sector-wide trade that may already have run its course.
With that background, let’s explore our 10 Best Small-Cap Consumer Staples Stocks to Buy Under $30.
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Our Methodology
To identify relevant stocks for this article, we screened U.S.-listed consumer staples companies with market prices below $30 and market capitalizations between $300 million and $2 billion. Also, we shortlisted only stocks with at least 35% upside potential according to TipRanks consensus as of the March 20 closing. In the final part of our search, 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. Nature’s Sunshine Products Inc. (NASDAQ:NATR)
Nature’s Sunshine Products Inc. (NASDAQ:NATR) is one of the 10 best small-cap consumer staples stocks to buy under $30.
On March 12, DA Davidson increased the firm’s price target on Nature’s Sunshine Products Inc. (NASDAQ:NATR) from $23 to $33. The firm reiterated its Buy rating on the stock, which now yields more than 39% upside potential for investors.
The adjustment in target price came on the back of the company’s fourth quarter report, where it exhibited an impressive outperformance relative to the consensus estimates. DA Davidson also anticipates further upward adjustments in the future based on its observations around the company’s existing portfolio. It believes that there are several major market segments that remain untapped for Nature’s Sunshine Products Inc. (NASDAQ:NATR). This reflects on the company’s potential for further expansion.
Earlier on March 11, the company reported its fourth-quarter results, with revenue of $123.8 million versus consensus forecasts of $121.5 million. It registered an adjusted EPS of 30 cents, significantly ahead of the consensus projections of 19 cents. CEO Ken Romanzi stated:
“We finished a record year in sales and delivered our second-best quarter ever and our largest Q4 on record, with sales and adjusted EBITDA up 5% and 16%, respectively.”
Nature’s Sunshine Products Inc. (NASDAQ:NATR) manufactures and distributes natural health, wellness, and personal care products. Its product portfolio comprises various categories related to bone, cellular, and joint health, cognitive function, blood sugar, sexual health, sleep, and energy. It sells products across the globe.
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