Forget Archer Daniels, Buy These 3 Consumer Staples Stocks

The Consumer Staples sector, which is considered to be defensive even in the times of economic disruptions, has been benefiting from the uptick in the U.S. economy. The sector looks well placed buoyed by rising consumer confidence, modest consumer spending and accelerating labor market. Also, the sector has a Zacks Sector Rank of #5 (out of 16).

Despite the prospering Consumer Staples sector, Archer Daniels Midland Company ADM is one stock that has been losing luster due to its dismal surprise history. The company's sales lagged the Zacks Consensus Estimate for more than three years now, alongside delivering negative earnings surprise in eight of the last 10 quarters. As a result, the stock has declined 6.5% in a year's time against the sector's 14.7% growth.

Moreover, the company's strong fundamentals have led management to provide an optimistic view for the year. This Zacks Rank #2 stock has a long-term earnings growth rate of 12.5%, which remains impressive.

The Clorox Company CLX has been performing well on the back of its brand-management initiatives, focus on e-commerce model and 2020 Strategy. Also, the company's earnings have outpaced the Zacks Consensus Estimate in each of the trailing four quarters by an average of 2.4%. Notably, this Zacks Rank #2 company's shares have rallied 20.9% in the past year, outpacing the industry's gain of 16.9%. Also, it has a long-term earnings growth rate of 6.7%.

Sysco Corporation SYY looks promising on the back of its robust business portfolio, cost-saving and revenue-management efforts, and 2020 Strategy. The company recently outlined its key growth strategies, wherein it also highlighted its three-year financial goals. Sysco's four core strategies include enhancing consumers' experience, optimizing business, stimulating power of its people and achieving operational efficacy.

These endeavors, along with constant focus on buyouts have helped the company's shares to move up 14.5% in a year against the industry's decline of 2.2%. Also, Sysco's earnings have outpaced the estimates in seven of the past eight quarters, with a trailing four-quarter average beat of 2.6%. Moreover, this Zacks Rank #2 stock has a long-term earnings growth rate of 9%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Estee Lauder Companies, Inc. (The) EL: Free Stock Analysis Report
 
Sysco Corporation SYY: Free Stock Analysis Report
 
Clorox Company (The) CLX: Free Stock Analysis Report
 
Archer-Daniels-Midland Company ADM: Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research