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Zacks Investment Ideas feature highlights: Lamb Weston, Coca-Cola and Clorox
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For Immediate Release
Chicago, IL – July 10, 2023 – Today, Zacks Investment Ideas feature highlights Lamb Weston (LW - Free Report) , The Coca-Cola Co. (KO - Free Report) and Clorox (CLX - Free Report) .
3 Stocks Tailored Toward a Defensive Approach
Currently, the Zacks Consumer Staples sector is ranked in the top 25% of all Zacks Sectors, indicating that companies within have witnessed positive earnings estimate revisions.
Those in the sector carry a defensive nature, as these companies' products possess an advantageous ability to generate consistent demand in the face of many economic situations.
In addition, many also pay dividends, providing the cherry on top for those with a preference for income.
Three stocks from the realm – Lamb Weston, The Coca-Cola Co. and Clorox – could be worth adding to your radar. All three presently carry a favorable Zacks Rank and are low-beta, with the latter helping to tame volatility. Let's take a closer look at each for those seeking a more defensive approach.
Coca-Cola
The Coca-Cola Company, a current Zacks Rank #2 (Buy), is best known for its flagship Coca-Cola beverage. The company has also invested in healthier alternatives such as coffee, sparkling water, and sports drinks.
KO's 43% trailing twelve-month return on equity is certainly worth highlighting, indicating that the company has efficiently generated profits from existing assets relative to other peers in the Zacks Consumer Staples sector.
The company is a member of the elite Dividend Kings club, reflecting an unparalleled commitment to shareholders through 50+ years of increased payouts. Shares currently yield a solid 3% annually with a payout ratio sitting at 73% of earnings.
Lamb Weston
Lamb Weston, a current Zacks Rank #2 (Buy), is a leading global manufacturer, marketer, and distributor of value-added frozen potato products. The company has enjoyed positive earnings estimate revisions for some time, with the trend particularly noteworthy for its current fiscal year.
Lamb Weston has been a big-time earnings performer, exceeding the Zacks Consensus EPS estimate by an average of nearly 50% across its last four quarters. The company delivered a sizable 45% EPS beat in its latest print and reported sales 6% above expectations.
The company's sales growth has been strong as of late.
Keep an eye out for LW's next quarterly release expected on July 25th; the Zacks Consensus EPS estimate of $1.06 suggests a 60% improvement in earnings from the year-ago quarter. The quarterly estimate has been revised marginally higher over the last several months.
Clorox
Clorox, a Zacks Rank #2 (Buy), markets some of the most trusted and recognized brands, including its namesake bleach and cleaning products. Similar to LW, the revisions trend has been notable for Clorox's current fiscal year, with the quarterly EPS estimate up 2% just over the last several months.
In addition, the company sports an inspiring growth profile, with earnings forecasted to soar 11% in its current fiscal year (FY23) and a further 25% in FY24. Revenue growth is also apparent, forecasted to see growth of 2% in FY23 and 3% in FY24.
It's worth noting that value-conscious investors may not find CLX shares as attractive, further reflected by the Style Score of "F" for Value. Shares currently trade at a 35.1X forward earnings multiple, well above the five-year median.
Bottom Line
Stocks in the Zacks Consumer Staples sector carry a defensive nature, as these companies' products have an advantageous ability to generate consistent demand in the face of many economic situations.
And all three companies above could be great considerations for those seeking a more defensive approach.
All three companies currently sport a favorable Zacks Rank, indicating optimism among analysts.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Lamb Weston, Coca-Cola and Clorox
For Immediate Release
Chicago, IL – July 10, 2023 – Today, Zacks Investment Ideas feature highlights Lamb Weston (LW - Free Report) , The Coca-Cola Co. (KO - Free Report) and Clorox (CLX - Free Report) .
3 Stocks Tailored Toward a Defensive Approach
Currently, the Zacks Consumer Staples sector is ranked in the top 25% of all Zacks Sectors, indicating that companies within have witnessed positive earnings estimate revisions.
Those in the sector carry a defensive nature, as these companies' products possess an advantageous ability to generate consistent demand in the face of many economic situations.
In addition, many also pay dividends, providing the cherry on top for those with a preference for income.
Three stocks from the realm – Lamb Weston, The Coca-Cola Co. and Clorox – could be worth adding to your radar. All three presently carry a favorable Zacks Rank and are low-beta, with the latter helping to tame volatility. Let's take a closer look at each for those seeking a more defensive approach.
Coca-Cola
The Coca-Cola Company, a current Zacks Rank #2 (Buy), is best known for its flagship Coca-Cola beverage. The company has also invested in healthier alternatives such as coffee, sparkling water, and sports drinks.
KO's 43% trailing twelve-month return on equity is certainly worth highlighting, indicating that the company has efficiently generated profits from existing assets relative to other peers in the Zacks Consumer Staples sector.
The company is a member of the elite Dividend Kings club, reflecting an unparalleled commitment to shareholders through 50+ years of increased payouts. Shares currently yield a solid 3% annually with a payout ratio sitting at 73% of earnings.
Lamb Weston
Lamb Weston, a current Zacks Rank #2 (Buy), is a leading global manufacturer, marketer, and distributor of value-added frozen potato products. The company has enjoyed positive earnings estimate revisions for some time, with the trend particularly noteworthy for its current fiscal year.
Lamb Weston has been a big-time earnings performer, exceeding the Zacks Consensus EPS estimate by an average of nearly 50% across its last four quarters. The company delivered a sizable 45% EPS beat in its latest print and reported sales 6% above expectations.
The company's sales growth has been strong as of late.
Keep an eye out for LW's next quarterly release expected on July 25th; the Zacks Consensus EPS estimate of $1.06 suggests a 60% improvement in earnings from the year-ago quarter. The quarterly estimate has been revised marginally higher over the last several months.
Clorox
Clorox, a Zacks Rank #2 (Buy), markets some of the most trusted and recognized brands, including its namesake bleach and cleaning products. Similar to LW, the revisions trend has been notable for Clorox's current fiscal year, with the quarterly EPS estimate up 2% just over the last several months.
In addition, the company sports an inspiring growth profile, with earnings forecasted to soar 11% in its current fiscal year (FY23) and a further 25% in FY24. Revenue growth is also apparent, forecasted to see growth of 2% in FY23 and 3% in FY24.
It's worth noting that value-conscious investors may not find CLX shares as attractive, further reflected by the Style Score of "F" for Value. Shares currently trade at a 35.1X forward earnings multiple, well above the five-year median.
Bottom Line
Stocks in the Zacks Consumer Staples sector carry a defensive nature, as these companies' products have an advantageous ability to generate consistent demand in the face of many economic situations.
And all three companies above could be great considerations for those seeking a more defensive approach.
All three companies currently sport a favorable Zacks Rank, indicating optimism among analysts.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.