Consumer staples are considered safe havens in turbulent markets due to their inelastic demand profiles. The flip side is that they frequently fall behind growth industries when times are good, and this perception became a reality over the past six months as the sector was down 10.3% while the S&P 500 was up 13%.
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. On that note, here is one consumer stock boasting a durable advantage and two best left ignored.
Two Consumer Staples Stocks to Sell:
MGP Ingredients (MGPI)
Market Cap: $533 million
Headquartered in Atchison, Kansas, MGP Ingredients (NASDAQ: MGPI) is a leading supplier of high-quality ingredients to the food and beverage industry
Why Do We Avoid MGPI?
- Sales tumbled by 8.6% annually over the last three years, showing consumer trends are working against its favor
- Forecasted revenue decline of 12% for the upcoming 12 months implies demand will fall even further
- Operating margin declined by 18.3 percentage points over the last year as its sales cratered
MGP Ingredients’s stock price of $25.14 implies a valuation ratio of 10.6x forward P/E. Read our free research report to see why you should think twice about including MGPI in your portfolio.
Nature's Sunshine (NATR)
Market Cap: $370.4 million
Started on a kitchen table in Utah, Nature’s Sunshine (NASDAQ: NATR) manufactures and sells nutritional and personal care products.
Why Does NATR Worry Us?
- 2.8% annual revenue growth over the last three years was slower than its consumer staples peers
- Smaller revenue base of $474.5 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Projected sales growth of 3.1% for the next 12 months suggests sluggish demand
At $21.17 per share, Nature's Sunshine trades at 22.9x forward P/E. Check out our free in-depth research report to learn more about why NATR doesn’t pass our bar.
One Consumer Staples Stock to Watch:
e.l.f. Beauty (ELF)
Market Cap: $4.38 billion
Short for "eyes, lips, face", e.l.f. Beauty (NYSE: ELF) is a developer of high-quality beauty products at accessible price points.
Why Is ELF on Our Radar?
- Impressive 45.7% annual revenue growth over the last three years indicates it’s winning market share
- Earnings growth has trumped its peers over the last three years as its EPS has compounded at 40.3% annually
- Free cash flow margin jumped by 8.4 percentage points over the last year, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
e.l.f. Beauty is trading at $73.97 per share, or 24.2x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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