U.S. stock markets witnessed an impressive rally in 2024 after an astonishing bull run in 2023. Despite fluctuations, the bull run continued in 2025. However, U.S. stocks suffered a blow and the bull run halted in February. 

Last month, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — tumbled 1.6%, 1.4% and 4%, respectively. The Nasdaq Composite posted its worst month since April 2024. 

Volatility continued into March and is likely to remain in the near-term primarily due to tariff and trade-related policies taken by the Trump administration. At this juncture, it will be fruitful to invest in defensive stocks like consumer staples to safeguard your portfolio from day-to-day fluctuations. 

Five consumer staples stocks with a favorable Zacks Rank to buy are: Tyson Foods Inc. TSN, Molson Coors Beverage Co. TAP, Primo Brands Corp. PRMB, Lancaster Colony Corp. LANC and Utz Brands Inc. UTZ. 

Volatility Resurfaces on Wall Street

Volatility was triggered in U.S. stock markets after President Donald Trump’s asserted that 25% tariffs would be imposed on imports from Canada and Mexico and an additional 10% tariff on China imports on March 4. 

Investors are highly concerned about the impact of Trump’s tariffs on the U.S. economy. The inflation rate is still much higher than the Fed’s targeted 2% level. Tariffs will raise the cost of inputs and thereby inflation rate. Personal spending — the largest component of the U.S. economy — fell unexpectedly in January. 

Moreover, retail sales and building construction dwindled last month. Both consumer sentiment and consumer confidence indexes failed to meet expectations in January. Manufacturing PMI for January and construction spending for December also came below expectations.

Most importantly, in its latest projection on March 3, the Atlanta Fed estimated that the U.S. economy will contract 2.8% in first-quarter 2025. U.S. GDP grew at a healthy 2.3% in fourth-quarter 2024. As a result, uncertainties about a near-term recession in the United States reappeared among investors. In theoretical finance, a contraction in economic growth for two consecutive quarters implies a recession.

Why Consumer Staples Sector? 

The consumer staples sector is mature and fundamentally strong as demand for such services is generally immune to changes in the economic cycle. The consumer staples sector includes companies that provide necessities and products for daily use. This makes the sector defensive in nature. 

Therefore, this has always been a go-to place for investors, who want to play it safe during extreme market fluctuations, irrespective of internal or external disturbances. Moreover, the sector is known for the stability and visibility of its earnings and cash flows. As a result, most of the stocks in this sector are regular dividend payers. Consequently, adding stocks from the consumer staples basket lends more stability to one’s portfolio.

5 Consumer Staples Stocks to Buy

We have narrowed our search to five consumer staples stocks with strong growth potential in the next 2-3 months. These stocks have seen positive earnings estimate revisions in the last 30 days. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Tyson Foods Inc.

Tyson Foods diversified multi-protein portfolio allows the company to navigate industry cycles while capitalizing on rising consumer demand for high-protein diets. With iconic brands like Tyson, Jimmy Dean and Hillshire Farm, the company benefits from strong brand loyalty and household penetration opportunities. 

The Chicken segment of TSN continues to deliver robust growth, supported by operational efficiencies and rising foodservice volumes. TSN is also leveraging digital advancements and AI-driven solutions to enhance supply-chain efficiency and consumer engagement. 

With a resilient business model and a multi-channel strategy, TSN remains well-positioned for long-term growth amid an evolving protein landscape. A solid first-quarter performance encouraged management to raise its adjusted operating income guidance for fiscal 2025.

Tyson Foods has an expected revenue and earnings growth rate of 0.9% and 22.6%, respectively, for the current year (ending September 2025). The Zacks Consensus Estimate for current-year earnings has improved 8% over the last 30 days. TSN has a current dividend yield of 3.23%.

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Molson Coors Beverage Co.

Molson Coors Beverage Co. has benefited from strong performances in its Canada and EMEA&APAC businesses. This led to impressive fourth-quarter 2024 results, wherein the bottom and top lines surpassed the Zacks Consensus Estimate. Earnings also increased year over year. TAP’s revitalization plan and the premiumization of its global portfolio bode well. 

The EMEA&APAC displays a significant ability to premiumize for both beer and beyond beer. TAP projects 2025 sales to increase in low-single digits year over year on a constant-currency basis. It expects 2025 underlying EPS to grow in high-single digits from 2024. TAP has also anticipated annual net price increases of 1-2% in North America.

Molson Coors Beverage has an expected revenue and earnings growth rate of 0.3% and 6.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.7% over the last 30 days. TAP has a current dividend yield of 3.07%.

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Primo Brands Corp.

Primo Brands operates as a branded beverage company with focus on healthy hydration in North America. PRMB offers solutions through water dispensers, direct delivery of refillable/reusable bottles, pre-filled Water exchange program, and water Filtration appliances, as well as operates self-service water refill stations. PRMB distributes to direct-to-consumer, retail channels, residential, eCommerce, on-premise, and commercial.

Primo Brands has an expected revenue and earnings growth rate of more than 100% and 54.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 31.1% over the last 30 days. PRMB has a current dividend yield of 1.34%.

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Lancaster Colony Corp.

Lancaster Colony is a manufacturer and marketer of specialty food products for the retail and foodservice markets. LANC’s wholly-owned subsidiaries, including T. Marzetti Company, produce and market high-quality national and regionally-branded food products throughout the United States for the retail and foodservice markets. 

Most of its products sold through the retail channel are marketed under LANC’s popular brand names, such as Marzetti, New York Brand Bakery, Sister Schubert's and Flatout. LANC’s production plants across the United States make an expanded family of quality food products found every day on the dinner tables of millions of consumers, as well as in well-known restaurant chains nationwide.

Lancaster Colony has an expected revenue and earnings growth rate of 3.1% and 6.1%, respectively, for the current year (ending June 2025). The Zacks Consensus Estimate for current-year earnings has improved 2.3% over the last 30 days. LANC has a current dividend yield of 2%.

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Utz Brands Inc.

Utz Brands is engaged in manufacture, marketing, and distribution of snack foods in the United States. UTZ offers various salty snacks, including potato chips, tortilla chips, pretzels, cheese snacks, pub/party mixes, pork skins, ready-to-eat popcorn, and other snacks which include salsa and dips, as well as seasonal favorites. 

UTZ offers its products under the Utz Zapp's, On The Border, Golden Flake, and Boulder Canyon, TORTIYAHS!, Hawaiian, Bachman, Tim's Cascade, Dirty Potato Chips, TGI Fridays, and Vitner's brands. 

UTZ sales its products through DSD and direct-to-warehouse distribution methods, retailers or via distributors, supermarkets, mass merchandisers, club warehouses, convenience stores and other large-scale retailers, merchants, distributors, brokers, and wholesalers.

Utz Brands has an expected revenue and earnings growth rate of 1.2% and 10.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.2% over the last seven days. UTZ has a current dividend yield of 1.76%.

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Molson Coors Beverage Company (TAP) : Free Stock Analysis Report

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Primo Brands Corporation (PRMB) : Free Stock Analysis Report

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