Top buy-rated stocks in consumer staples – Citi

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Citi Research analysts shared their top 6 buy-rated stocks and their top 5 sell-rated stocks within consumer staples (NYSEARCA:XLP).

All industries — consumer staples distribution and retail, food, beverage and tobacco, and household and personal products — within the consumer staples sector (XLP) are rated market weight by Citi analysts.

Analyst Scott Chronert wrote that year-to-date, the sector’s underperformance has “rightsized” the valuation compared to its fundamental set up. The sector is raised from underweight.

Here are the top buy-rated stocks, measured by expected total return (or ETR):

  • The Simply Good Foods Co. (SMPL) – ETR: 36%
  • Mondelez International Inc. (MDLZ) – ETR: 27%
  • Lamb Weston Holdings Inc. (LW) – ETR: 25%
  • The J M Smucker Co. (SJM) – ETR: 24%
  • Dollar Tree Inc. (DLTR) – ETR: 23%
  • The Kraft Heinz Co. (KHC) – ETR: 22%

These are the top sell-rated stocks:

  • Church & Dwight Co. Inc. (CHD) – ETR: -13%
  • Kimberly-Clark Corp. (KMB) – ETR: -9%
  • McCormick & Co Inc. (MKC) – ETR: -8%
  • Campbell Soup Co. (CPB) – ETR: -4%
  • Brown-Forman Corp. (BF.B) – ETR: 2%

William Murphy

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