The U.S. equity market is in jitters as possibilities of a trade war with China and three or more rate hikes by the Federal Reserve do the rounds.
When the market is turbulent, the consumer staples sector can be one of the safest go-to places for investors. Predominant as an abode of defensive stocks, this space primarily includes companies that offer products and essentials used in daily lives.
However, China’s aggressive stance of slapping 25% tariffs over American imports on Apr 1 has affected the U.S. agricultural, meat products, as well as farm equipment companies, congregated under the consumer staples sector.
Nevertheless, the operative date for the imposition of these tariffs has not been disclosed yet.
Per our latest Earnings Preview(Apr 6, 2018), the first-quarter 2018 earnings and revenues of consumer staples stocks in the S&P 500 group will likely climb 4.4% and 2.8%, respectively, year over year.
Among the numerous potential gainers within the sector, adding Hormel Foods Corporation HRLto your portfolio will bear fruit.
Over the last month, this Zacks Rank #2 (Buy) stock has gained 4.9%, as against the 2.2% loss incurred by the industry.