Consumer staple stocks positioned to grow: analyst
The consumer staples sector has underperformed the market at large, but some stocks within the industry have the potential to grow even throughout challenging economic times ahead, one analyst says.
Speaking with BNN Bloomberg’s Amber Kanwar on Wednesday, Filippo Falorni, vice-president and equity research analyst at Citi, said he sees opportunities within consumer staples that can demonstrate growth despite the forecasted economic storm in the second half of this year and into 2024.
“We do see opportunities, particularly for companies that will be able to maintain an elevated level of organic sales growth as they cycle large price increases over the past two years, as the CPI kind of cools off, and also can get margins expansion and get earnings growth as the economy potentially gets worse,” he said.
Falorni recommended Procter & Gamble Co. (PG), Colgate-Palmolive Company (CL) and Constellation Brands Inc. (STZ) as his top three picks within the consumer staples industry.
He, his family, his firm and his investment banking clients do not own any of the stocks mentioned above.
Check out the full video at the top of the article to learn more.