Key PointsThese are three quality stocks that every investor should keep on a watchlist. They meet the three typical requirements that mega investors look for.With great margins and moats around their products and services, Wall Street analysts are willing to give them a double-digit upside.Predictable cash flow and profits will help investors compound their capital for years.5 stocks we like better than CarvanaInvestors looking for worthwhile companies to add to their portfolios should consider a few facto ...

Colgate-Palmolive Company (CL) stock is doing well on the bourses, thanks to its robust strategic efforts. The company has been gaining from pricing and productivity initiatives for a while now. Its innovation strategy and shareholder-friendly moves also bode well. Shares of this renowned consumer goods company have increased 24.4% in the past six months compared with the industry’s 15.1% upside. A Growth Score of A adds strength to this current Zacks Rank #2 (Buy) company.Let’s Delve DeeperColgate’s innova ...

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a great growth stock is not easy at all.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth S ...

Economic Context and Consumer Behavior - The April jobs report indicated fewer employment opportunities added than expected, suggesting a disinflationary trend and fewer high-paying jobs in the labor market [1] - Consumers are showing caution in discretionary purchases, including health and personal care expenditures, amid a collective credit card debt load exceeding $1 trillion [1] - Cyclical ideas may suffer due to cautious consumer behavior, making consumer defensive stocks a safer investment option [1][2] Walmart (WMT) - Walmart is a practical choice for consumer defensive stocks due to its accessibility, convenient locations, and ability to meet demand outside of e-commerce [3] - The company consistently matches or exceeds quarterly earnings targets, with a 6.88% average positive earnings surprise in fiscal 2023 [3] - For the current fiscal year, analysts expect EPS of $2.36 on revenue of $637.49 billion, a solid improvement from last year's $2.22 EPS and $648.12 billion in sales [4] - Walmart offers a forward annual dividend yield of 1.37%, making it a decent defensive stock option [4] TJX Companies (TJX) - TJX Companies, focused on apparel retail, benefits from the competitive job market, as consumers seek affordable options for professional attire [5][6] - The company posted a 7.58% average positive earnings surprise in fiscal 2023 and is expected to continue steady progress [6] - Analysts project EPS of $4.10 on revenue of $56.28 billion for the current fiscal year, up from $3.86 EPS and $54.22 billion in sales last year [7] - TJX offers a forward dividend yield of 1.52% [7] Colgate-Palmolive (CL) - Colgate-Palmolive is a defensive stock due to its essential products in oral hygiene and home maintenance, which remain in demand regardless of economic conditions [8] - The company has a 4.7% average positive earnings surprise over the past four quarters [8] - For fiscal 2024, analysts expect EPS of $3.53 on revenue of $20.21 billion, up from $3.23 EPS and $19.46 billion in sales last year [9] - Colgate-Palmolive offers a forward dividend yield of 2.1% [9] Coca-Cola (KO) - Coca-Cola is a top consumer defensive stock due to its global brand recognition and affordability as a caffeine alternative [10][11] - The company has a 4.38% average positive earnings surprise over the past four quarters [11] - Analysts project EPS of $2.82 on revenue of $45.68 billion for the current fiscal year, with potential growth to $3.02 EPS and $47.89 billion in revenue next year [11] - Coca-Cola offers a forward dividend yield of 3.07% [12] McDonald's (MCD) - McDonald's is a defensive stock due to consistent demand for low-cost dining and its innovative drive-thru concept, CosMc's [13] - The company has a 5.93% average positive earnings surprise over the past four quarters, despite a slight miss in Q1 2024 [13] - Analysts expect EPS of $12.20 on revenue of $26.62 billion for fiscal 2024, up from $11.15 EPS and $23.82 billion in sales last year [14] - McDonald's offers a forward dividend yield of 2.43% [14] Five Below (FIVE) - Five Below attracts a wide customer base with its pricing flexibility, offering products up to $25 alongside its $1-$5 mainline portfolio [15][16] - The company has been volatile but delivered a 3.1% average positive earnings surprise in fiscal 2023, despite a Q4 miss [16] - Analysts project EPS of $6.04 on revenue of $4.04 billion for the current fiscal year [17] Philip Morris (PM) - Philip Morris is a controversial but potentially undervalued defensive stock, with consistent earnings performance and growth in alternative smoking products [18][19] - Analysts expect EPS of $6.29 on revenue of $36.94 billion for fiscal 2024, up from $6.01 EPS and $35.25 billion in sales last year [19] - The company offers a forward dividend yield of 5.22%, making it an attractive defensive stock [19]

Dividend Aristocrats are held in high regard amongst investors due to their proven ability to achieve robust financial results and pay growing dividends over extended time periods. Considering an essential requirement of being a Dividend Aristocrat is increasing dividends for 25 consecutive years, they deserve the praise they get.However, what if I proposed that some of these beloved Dividend Aristocrat stocks might be trading at unjustifiably high prices? In fact, several names within this elite group appe ...

Rising inflation is igniting fresh fears of an economic slowdown, as the upbeat sentiment among millions of Americans continues to fade fast. Consumers who were confident about the economy’s health till a few months back are now doubtful about the future.The University of Michigan’s preliminary reading on the overall consumer sentiment index came up with a reading of 67.4 for May, its lowest level in six months. Also, this was sharply lower than April’s reading of 77.2 and the consensus estimate of 76.This ...

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, it's pretty easy to find cutting-edge growth sto ...

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.Zacks Premium includes access to the Zacks Style Scores as well.What are the Zacks Style Scores?T ...

The Federal Reserve’s fight to curb sky-high inflation continues. Although inflation has eased sharply over the past year, it remains stubbornly higher than the central bank’s 2% target as price pressures remain elevated.The Commerce Department reported on Apr 28 that the personal consumption expenditure (PCE) price index, a key inflation gauge of the Federal Reserve, increased 2.7% in March on a year-over-year basis, surpassing the consensus estimate of a rise of 2.6%. PCE rose 2.5% in February.Core PCE, w ...

The first-quarter earnings train is running at full steam now with company results coming at us fast and furiously. FactSet reports that with 46% of companies listed on the benchmark S&P 500 index having reported financial results, 77% have beaten expectations for their earnings, while 60% have announced better-than-expected revenue. The year-over-year earnings growth rate for Q1 among S&P 500-listed companies is 3.5%, marking the third-straight quarter of year-over-year growth for the benchmark. While all ...