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4 Consumer Staples Stocks To Watch In The Stock Market Now

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Sep 23, 2022 (StockMarket.com via COMTEX) -- Consumer staples stocks are a type of equity that refers to publicly traded companies whose products are considered essential or necessary for everyday life. This can include food, beverage, and household goods producers as well as retailers who sell these items. The demand for consumer staples is relatively inelastic, meaning that it is not greatly affected by changes in economic conditions.

As a result, these stocks tend to be less volatile than other types of equities and can provide a measure of stability for a stock market investment portfolio. In addition, consumer staples stocks are typically defensive in nature, meaning that they perform relatively well during periods of a market downturn. For these reasons, they are often considered to be a core holding for long-term investors. Now knowing this, if you're looking at the consumer staples sector , here are four companies for your late September 2022 radar.

Consumer Staples Stocks To Buy [Or Avoid] Now

1. Philip Morris International (PM Stock)

Philip Morris International (PM) is an international tobacco company. The company has a broad product portfolio that consists of cigarettes and reduced-risk products, including heat-not-burn, vapor, and oral nicotine products, among others. Currently, PM shareholders enjoy an annual dividend yield of 5.1%.

Just in July, Philip Morris International (PM) announced stronger-than-expected 2nd quarter 2022 financial results. Diving right in, PM reported earnings of $1.48 per share, with revenue of $20.4 billion for Q2 2022. This is versus analysts' consensus earnings estimate of $1.24 per share and revenue of $6.7 billion. What's more, the company also revised its outlook for full-year 2022 earnings. In detail, the company said it estimates 2022 earnings per share in the range of $5.90 to $6.04 per share. For context, Philip Morris previously said they were projecting earnings of $5.45 to $5.56 per share for the full-year 2022.

Jacek Olczak, Chief Executive Officer stated, "We are raising our outlook for the full year and now expect to deliver pro forma adjusted growth in net revenues of 6% to 8%, on an organic basis, and diluted EPS of 10% to 12%, excluding currency, underpinned by pro forma heated tobacco unit shipment volume of 90 to 92 billion units."

As of Friday's afternoon trading session, shares of PM stock are trading down over 4% at $91.17 per share. Keeping this in mind, should investors add Philip Morris stock to their radar today?

[Read More] Good Stocks To Buy? 4 Most Shorted Stocks To Watch Right Now

2. Anheuser-Busch InBev (BUD Stock)

Next, Anheuser-Busch InBev (BUD) is the largest brewer in the world. As well as one of the world's top five consumer product companies, as measured by EBITDA. The company's portfolio currently includes five of the top 10 beer brands by sales and 18 brands with combined retail sales of over $1 billion.

In July, Anheuser-Busch InBev released its second quarter 2022 results. In the report, the company reported earnings of $0.75 per share, along with revenue of $14.8 billion for Q2 2022. The street's consensus earnings estimate for the second quarter was $0.73 per share and revenue of $14.8 billion. In addition to that, the company reported a revenue increase of 9.3% during the same period, in 2021.

Furthermore, Michel Doukeris, CEO of BUD had this to say about the quarter's performance, "Our business delivered sustained profitable growth. Our volume increased by 3.4%, our top-line by 11.3%, and EBITDA by 7.2%. The relentless execution of our strategy, the strength of our brands, and accelerated digital transformation enabled us to meet the moment in an ongoing dynamic operating environment."

Meanwhile, shares of BUD stock are down 21% year-to-date. During Friday's afternoon trading session BUD stock is trading at $46.38 per share.

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