Consumers across the US are emerging from quarantine, determined to spend money at restaurants, bars, nightclubs and stores. However, consumer behavior has changed, potentially forever.

The economic destruction caused by the coronavirus combined with an overarching fear of a second wave of the virus could dissuade people from spending beyond their means. Rather they could just be focusing on essentials.  In other words, consumer staples stocks are likely to continue to rake in the cash even after the economy reopens.

General Mills (GIS), Campbell Soup Co. (CPB) and Clorox Co. (CLX) could reach new heights in the months ahead. Let’s take a look at these coveted consumer staples stocks worthy of a position in every investor’s portfolio.

General Mills (GIS)

Though there will be a spike in restaurant traffic in the months to come, consumers have gotten into the habit of eating affordable and 100% safe food at home. This newfound DIY mentality will extend well beyond the economy’s reopening simply because unemployment is likely to hover in the range of 15% or higher in the months to head.

Furthermore, plenty of workers have been forced to take pay cuts and a reduction in hours. The end result is less discretionary income, meaning the likes of GIS will continue to excel. GIS manufactures and markets consumer foods ranging from cereals to snacks, quick meals, ice cream, yogurt and baking mixes.

GIS also has its hands in the “pets” pie after acquiring Blue Buffalo in the spring of ‘18. If you are hesitant to hop on the GIS train, look no further than the stock’s stellar POWR Ratings. GIS is ranked second of 56 stocks in the Food Makers space with A ratings in every POWR component category but for its Industry Rank of B.

Look for GIS to gradually move toward the analysts’ high price target of $71 in the quarters ahead.

Clorox Co. (CLX)

Take a look around your house, office and local store and you are sure to find at least one CLX product. This stock is absolutely perfect for the pandemic as well as the months and years to follow. CLX disinfectant products combat germs and viruses such as covid-19, meaning it will be nearly ubiquitous for the foreseeable future.

CLX has expanded its horizons providing the likes of automotive care products, trash bags, dressings, kitty litter and other consumer staples. In fact, CLX even sells water filtration filters and systems. You are bound to see that many more CLX products in use as the economy reopens. Furthermore, if the virus spreads across the land in a second wave this winter, CLX products will be even more in-demand.

The POWR Ratings have CLX ranked third of 33 stocks in the Consumer Goods space. CLX has As in every single POWR Component. Take a look at CLX price returns and you will find plenty of green: a three-month price return of nearly 10%, a six-month price return of nearly 40% and a five-year price return of 122.37%.

More than three-quarters of CLX sales are from brands that hold a #1 or #2 market share position. CLX belongs in every investor’s portfolio from this point onward.

Campbell Soup Co. (CPB)

As most stock market aficionados know, millennials are flocking to the Robin Hood trading platform in the midst of the pandemic. These young investors favor stocks they personally use ranging from the airlines to video game developers and fast food restaurants. However, savvy investors who abide by the tried and true mantra of “buy and hold” understand the key to stock market success is to take a long-term view.

CPB is the perfect “buy and hold” stock, especially amidst the current economic trough. The current recession will alter consumer behavior for years or possibly even a decade. People have less discretionary income to spend, are fearful of venturing out to local restaurants and inclined to save rather than shell out their limited dollars for extravagant culinary creations.

CPB soups and beverages such as its V8 energy drinks are quite popular. The company also sells Kettle Brand chips, Pace Mexican sauces, Emerald nuts and Prego pasta sauce.

The POWR Ratings have CPB ranked in the top half of Food Makers stocks with solid grades in each POWR Component category. CPB has a one-year price return of 22.57% and a five-year price return of 17.77%.

The average analyst price target for CPB is $52.33, meaning there is nearly 7% upside at a bare minimum. Buy CPB today, hold it through the recession and into the bounce back and you should make a tidy profit.

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GIS shares were trading at $61.98 per share on Wednesday afternoon, up $0.19 (+0.31%). Year-to-date, GIS has gained 17.82%, versus a -1.96% rise in the benchmark S&P 500 index during the same period.

About the Author: Patrick Ryan

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...

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