Happy Friday, investors! September's volatility continued yesterday as markets ended the trading day slightly higher. Today's Featured Stock Story 8 Best Consumer Staples Stocks With 5-Star Morningstar RatingsWith so much unpredictability and uncertainty in both the economy and the stock market these days, investors looking to play defense with their portfolios can always count on high-quality consumer staples stocks.
Unlike cyclical stocks, consumer staples companies produce household goods, food, beverages and other products that are always in demand, even during an economic downturn.
The top consumer staples stocks generate steady earnings and revenue numbers throughout the ups and downs of the economic cycle, and many pay sizable dividends. Here are eight consumer staples stocks to buy that have five-star value ratings from Morningstar:
1. British American Tobacco (ticker: BTI). Analyst Philip Gorham says conventional tobacco will likely continue to drive the profits and the cash flow needed to support British American's 7.6% dividend for at least the next 10 years. However, tobacco companies know the future hinges on electronic cigarettes and other next-generation products.
2. Anheuser-Busch InBev (BUD). It's the world's largest brewer and the parent company of Budweiser, Beck's and Corona. CEO Carlos Brito reportedly plans to leave the position in 2021 after 16 years at the helm. Gorham says Brito's exit will mark the end of an era of consolidation in the brewing industry.
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10 Major Upcoming IPOs to Watch in 2020 Dow26,815 (+0.2%)
Nasdaq10,672 (+0.37%)
S&P 5003,246.59 (+0.3%)
* Market data as of yesterday's close
Here's what you missed in the markets on Thursday.
Spotlight on Fitness Stocks Fitness Stocks: 7 Winners and Losers in 2020
With millions of Americans stuck at home full time, several fitness stocks have enjoyed growing demand from consumers with worsening cabin fever. At the same time, others in the industry have suffered terribly due to less auspicious business models unable to withstand the new realities of 2020. Here are seven fitness stocks that stand out as some of the biggest winners and losers. The best dividend stocks to buy. Though the S&P 500 set yet another all-time high on Sept. 2, the end of the month has been decidedly worse as the benchmark dipped under 3,300 once more – a level not seen since previous lows in early August. Such short-term uncertainty shouldn't worry dividend investors too much, however, as these stocks tend to be less volatile than fast-moving growth names. Five names stand out as October draws near. Unflattering labor market numbers. House Democrats are reportedly putting together a $2.4 trillion relief bill, meant to follow up on the $2.2 trillion CARES Act that was passed and signed in March. It’s likely to face pushback from Republicans.
Thursday also brought the release of the newest weekly data on jobless claims, which came in worse than expected. Initial claims were 870,000 for the week of Sept. 19, just above the 866,000 claims seen the week before, and worse than the 825,000 analysts expected.
Stocks took a break from their recent bearish trend on Thursday, with the Dow Jones Industrial Average adding 52 points, or 0.2%, to finish at 26,815.
Amazon unveils flying Ring camera, other gadgets. E-commerce and tech giant Amazon.com (AMZN) unveiled a bevy of new products Thursday, including the Ring Always Home Cam, a home security camera that can fly around your house. It will retail for $250.
The company also announced new iterations of its Fire TV devices as it escalates its rivalry with Roku (ROKU) and Apple's (AAPL) Apple TV in a war for screen time in consumer living rooms. New versions of its Alexa-enabled Echo devices were also announced, including the Echo Show 10, a $250 smart device with a screen that can pivot to track users’ movement.
AMZN shares ended slightly higher Thursday, and are up nearly 65% year to date. Worst over for Darden, Olive Garden? Shares of Olive Garden's parent company Darden Restaurants (DRI) soared on Thursday, jumping 8.1% and finishing as the best-performing stock in the S&P 500. The spike comes on the heels of Darden's impressive quarterly report, which saw "higher than expected" earnings and brought news that the board had voted to reinstate a quarterly dividend.
In addition to Olive Garden, the company also owns several other brands including LongHorn Steakhouse. Starting to pay a dividend again is a sign of confidence in the company's prospects. Even though revenue fell more than 28% last quarter, DRI managed to turn a profit. That's no easy feat for restaurants in today's day and age. Explore Stock and Fund Rankings Top Alcoholic Beverage StocksData as of April 14, 2025 ✉ If you're enjoying this newsletter, forward it to a friend! They can click here for their free daily dose of investing tips. You can also check out more U.S. News newsletters here.
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