Consumer stocks to buy now are like finding hidden treasures in a turbulent sea. As the second quarter (Q2) unfurls, these stocks emerge as sturdy vessels, promising not just steady portfolio growth but also alluring rewards for shareholders.
Recent quarters have showcased the U.S. economy’s resilience, with robust signs of growth outshining analyst predictions. The consumer spending landscape glimmers with potential, boosting profits and fortifying the economic panorama. Despite looming inflationary pressures, the enduring vigor of the U.S. economy underscores the allure of consumer stocks for those seeking stability and growth amid market unpredictability.
Exploring E.l.f. Beauty (ELF)
Thriving on innovation, E.l.f. Beauty (NYSE: ELF) dazzles as a leading cosmetics entity. Its amalgamation of clean, vegan products at affordable price points caters aptly to Gen Z’s tastes. The company’s digital dominance and social media prowess have made it a frontrunner in the growth stock domain, with its stock soaring an astounding 475% in the past three years.
Looking ahead, E.l.f. Beauty’s financial outlook gleams with promise. Weathering the pandemic storm, the company notched double-digit revenue growth and has sustained the momentum. With net sales escalating by 85% year-over-year in the third quarter to $270.9 million, surpassing analyst forecasts, the brand continues its upward trajectory.
TipRanks analysts project a ‘moderate buy’ for ELF stock, foreseeing a healthy 28% upside from current levels.
Unveiling Alibaba (BABA)
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Operating in the shadows, Alibaba (NYSE: BABA) stands as a Chinese e-commerce behemoth with untapped potential. Navigating market headwinds alongside China’s economic challenges, the company’s adaptability and long-term growth triggers position it as an enticing prospect. Trading at a mere 1.30 times forward TTM sales, 69% lower than the sector median, Alibaba boasts a robust cash reserve of over $91.6 billion, enabling agile maneuvers amid economic choppiness.
Reinforcing core operations through Taobao and Tmall, Alibaba ventures into new territories, with segments like Digital Commerce and Cainiao logistics recording 44% and 27% YOY growth respectively. Its strategic diversification capitalizes on the e-commerce boom in regions like Southeast Asia and Latin America.
Diving into Ingredion (INGR)
With a focus on delivering varied ingredient solutions, Ingredion (NYSE: INGR) caters to diverse sectors spanning from food to textiles. The company’s steady growth trajectory mirrors its stock performance, up by over 21% in the past three years. Despite lackluster top-line growth recently, Ingredion’s robust profitability shines through.
Boasting a dividend yield of 2.83% and a track record of 13 years of payout growth, Ingredion’s stock stands out. The company’s role in burgeoning market segments hints at a potential rebound in a more favorable economic climate.
