7 Best Mid-Cap Consumer Defensive Stocks to Buy

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6. Smithfield Foods Inc. (NASDAQ:SFD)

Smithfield Foods Inc. (NASDAQ:SFD) is one of the 7 best mid-cap consumer defensive stocks to buy.

On March 9, Smithfield Foods Inc. (NASDAQ:SFD) shared that the company is expected to complete its $450 million acquisition of Nathan’s Famous Inc. (NASDAQ:NATH) during the first half of the year. Smithfield has full brand ownership and strategic control over Nathan’s long-standing licensing relationship because of the agreement.

The company claims that the transaction is a logical fit that unites another leading brand into its portfolio of packaged meats, boosts the presence of beef while using scale in manufacturing, marketing, retail, and foodservice distribution, and encourages long-term sales and cash flow visibility. The company targets approximately $9 million in annual cost synergies by the second anniversary of closing and expects the deal to be immediately accretive to adjusted earnings per share.

On February 17, Smithfield Foods Inc. (NASDAQ:SFD) announced its plan to build a new processing facility in Sioux Falls, South Dakota. The company said the project, which is subject to regulatory approvals, will replace its existing plant and be located in Foundation Park.

Smithfield currently employs around 3,200 people in the area and contributes about $200 million in annual wages, while also supporting thousands of indirect jobs across agriculture and related sectors.

Smithfield Foods Inc. (NASDAQ:SFD) offers packaged and fresh food across the United States and international markets. The company sells packaged meat products such as sausage, deli, bacon, and hot dogs under several brands. These include Farmer John, Carando, Kretschmar, Armour, John Morrell, and more.

While we acknowledge the potential of SFD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SFD and that has 100x upside potential, check out our report about the cheapest AI stock.

Click to continue reading and see the 5 Best Mid-Cap Consumer Defensive Stocks to Buy.

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