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3 Under-$3 Consumer Staple Stocks Wall Street Analysts Recommend Buying
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Given the current market volatility marked by a high inflationary environment and recession fears, investing in safe havens and at lower prices appears to be a prudent thing to do. Talking of safe zones, there is no better space than the Consumer Staples sector, popularly known as the defensive spot.
As demand for staple products remains fairly stable, companies in the space remain relatively well placed even during economic downturns and market turbulence. The sector has always been a go-to place for investors, as it offers growth irrespective of the state of the economy. Notably, the Zacks Consumer Staples sector has rallied close to 12% in the past three months, outperforming the S&P 500’s gain of around 5%.
We believe the sector remains well placed for 2023 on the back of favorable demand and companies’ constant focus on undertaking innovation and other brand-building efforts to make the most of it. Companies (including food and beverage players) have been particularly investing in healthy offerings, given consumers’ rising inclination toward health and wellness (all the more since the pandemic).
While consumer staple companies are not immune to input cost inflation, tough labor market and supply-chain bottlenecks, players in the space have been undertaking robust pricing actions to counter the inflationary headwinds. Solid saving, restructuring and productivity measures have also been working well.
Image Source: Zacks Investment Research
Getting to Our Picks
Investing in low-priced Consumer Staple stocks seems to be a good idea as we are about to enter 2023. Add to it, adhering to Wall Street recommendations makes it even safer.
On that note, we have highlighted three Consumer Staple stocks (using the Zacks Stock Screener), which boast strong fundamentals and are well-positioned for growth in the new year. These stocks are priced below $3 and carry an average brokerage (ABR) recommendation of <=2. Additionally, these stocks flaunt a Zacks Rank 1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
3 Great Choices
Yield10 Bioscience, Inc. (YTEN - Free Report) carries a Zacks Rank #2. Currently trading at $1.74, it has an ABR of 1 on a scale of 1 to 5. Based on these analyst projections, we expect an average price target of $12.25, suggesting a 512.5% upside to the current closing price. The company’s prospects look bright, given the favorable demand for low-carbon index feedstock oil for biofuels. To this end, Yield10 Bioscience’s focus on developing and commercializing Camelina as a new industrial crop bodes well. YTEN has been undertaking robust market development initiatives to fuel expansion.
Yield10 Bioscience is engaged in developing enhanced oilseed Camelina sativa for the production of proprietary seed products, alongside discovering high-value genetic traits for the agriculture and food spaces. The Zacks Consensus Estimate for YTEN’s 2023 bottom line has improved from a loss of $1.98 per share to a loss of $1.84 over the past 60 days, indicating 30.8% growth year over year.
The Alkaline Water Company Inc. (WTER - Free Report) produces, distributes, and markets bottled alkaline water. The company’s Pathway to Profitability strategy has been working well. Additionally, The Alkaline Water Company has been benefiting from continued expansion in the retail channel, thanks to its solid brand image in the beverage category. On its last earnings call, management stated that it remains encouraged and positive about YTEN’s prospects.
The Alkaline Water Company’s 2023 bottom line has improved from a loss of 11 cents per share to a loss of 9 cents in the past 60 days, indicating 52.6% growth year over year. Currently trading at 16.73 cents, it has an ABR of 1.00 on a scale of 1 to 5. Based on these analyst projections, we expect an average price target of $1.50, suggesting a 733.3% upside to the current closing price.
Benson Hill, Inc. (BHIL - Free Report) is worth a shot. The food technology company’s Ingredients segment has been performing well. On its third-quarter 2022 earnings call, management raised its Ingredients segment full-year guidance on the back of robust demand for non-proprietary ingredient soy and yellow pea products. It also pulled up its gross profit view owing to accelerated top-line growth and expectations of enhanced operating efficiencies. Focus on innovation also keeps the company well-placed for growth.
Currently trading at $2.23, BHIL has an ABR of 1.00 on a scale of 1 to 5. Based on analyst estimates, we expect an average price target of $6, suggesting a nearly 162% upside to the current closing price. The Zacks Consensus Estimate for Benson Hill’s 2023 bottom line has improved from a loss of 76 cents per share to a loss of 63 cents in the past 60 days.
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3 Under-$3 Consumer Staple Stocks Wall Street Analysts Recommend Buying
Given the current market volatility marked by a high inflationary environment and recession fears, investing in safe havens and at lower prices appears to be a prudent thing to do. Talking of safe zones, there is no better space than the Consumer Staples sector, popularly known as the defensive spot.
As demand for staple products remains fairly stable, companies in the space remain relatively well placed even during economic downturns and market turbulence. The sector has always been a go-to place for investors, as it offers growth irrespective of the state of the economy. Notably, the Zacks Consumer Staples sector has rallied close to 12% in the past three months, outperforming the S&P 500’s gain of around 5%.
We believe the sector remains well placed for 2023 on the back of favorable demand and companies’ constant focus on undertaking innovation and other brand-building efforts to make the most of it. Companies (including food and beverage players) have been particularly investing in healthy offerings, given consumers’ rising inclination toward health and wellness (all the more since the pandemic).
While consumer staple companies are not immune to input cost inflation, tough labor market and supply-chain bottlenecks, players in the space have been undertaking robust pricing actions to counter the inflationary headwinds. Solid saving, restructuring and productivity measures have also been working well.
Image Source: Zacks Investment Research
Getting to Our Picks
Investing in low-priced Consumer Staple stocks seems to be a good idea as we are about to enter 2023. Add to it, adhering to Wall Street recommendations makes it even safer.
On that note, we have highlighted three Consumer Staple stocks (using the Zacks Stock Screener), which boast strong fundamentals and are well-positioned for growth in the new year. These stocks are priced below $3 and carry an average brokerage (ABR) recommendation of <=2. Additionally, these stocks flaunt a Zacks Rank 1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
3 Great Choices
Yield10 Bioscience, Inc. (YTEN - Free Report) carries a Zacks Rank #2. Currently trading at $1.74, it has an ABR of 1 on a scale of 1 to 5. Based on these analyst projections, we expect an average price target of $12.25, suggesting a 512.5% upside to the current closing price. The company’s prospects look bright, given the favorable demand for low-carbon index feedstock oil for biofuels. To this end, Yield10 Bioscience’s focus on developing and commercializing Camelina as a new industrial crop bodes well. YTEN has been undertaking robust market development initiatives to fuel expansion.
Yield10 Bioscience is engaged in developing enhanced oilseed Camelina sativa for the production of proprietary seed products, alongside discovering high-value genetic traits for the agriculture and food spaces. The Zacks Consensus Estimate for YTEN’s 2023 bottom line has improved from a loss of $1.98 per share to a loss of $1.84 over the past 60 days, indicating 30.8% growth year over year.
The Alkaline Water Company Inc. (WTER - Free Report) produces, distributes, and markets bottled alkaline water. The company’s Pathway to Profitability strategy has been working well. Additionally, The Alkaline Water Company has been benefiting from continued expansion in the retail channel, thanks to its solid brand image in the beverage category. On its last earnings call, management stated that it remains encouraged and positive about YTEN’s prospects.
The Alkaline Water Company’s 2023 bottom line has improved from a loss of 11 cents per share to a loss of 9 cents in the past 60 days, indicating 52.6% growth year over year. Currently trading at 16.73 cents, it has an ABR of 1.00 on a scale of 1 to 5. Based on these analyst projections, we expect an average price target of $1.50, suggesting a 733.3% upside to the current closing price.
Benson Hill, Inc. (BHIL - Free Report) is worth a shot. The food technology company’s Ingredients segment has been performing well. On its third-quarter 2022 earnings call, management raised its Ingredients segment full-year guidance on the back of robust demand for non-proprietary ingredient soy and yellow pea products. It also pulled up its gross profit view owing to accelerated top-line growth and expectations of enhanced operating efficiencies. Focus on innovation also keeps the company well-placed for growth.
Currently trading at $2.23, BHIL has an ABR of 1.00 on a scale of 1 to 5. Based on analyst estimates, we expect an average price target of $6, suggesting a nearly 162% upside to the current closing price. The Zacks Consensus Estimate for Benson Hill’s 2023 bottom line has improved from a loss of 76 cents per share to a loss of 63 cents in the past 60 days.