Consumer goods stocks are worth a closer look now that prices are rising across the board. Consumers have a record amount of savings, meaning they are that much more likely to spend as the economy gradually reopens.

Economists agree our current inflationary environment is likely to continue well beyond the current quarter. As a result, businesses that provide consumer goods will increase their prices to offset rising supply costs and add to the bottom line.

These three consumer goods stocks are likely to benefit from rising costs: Kimberly-Clark Corporation (KMB), Proctor & Gamble (PG), and The Clorox Company (CLX).

Proctor & Gamble (PG)

PG, a maker of a wide array of consumer goods, does business in 180 countries. PG sells everything from shampoo to deodorant, vitamins, minerals, floss, batteries, and plenty more. Consumer hoarding combined with a high level of savings and rising prices will likely bode well for PG in the months ahead.

PG has a C grade in the POWR Ratings. The stock has an A grade in the Stability component, a B in the Quality component, and a C in the Sentiment component. Click here to learn more about how PG fares in the remainder of the POWR Ratings components such as Momentum, Value, and Growth.

Out of 71 Consumer Goods stocks, PG is ranked 34th. You can learn more about this sector by clicking here.

The analysts insist good things are in store for PG, setting an average target price of $147.89 for the stock. If PG fulfills this expectation, it will have climbed by nearly 12%. The analysts’ highest target price for PG is $168. The lowest target price for PG is $119. Of the 25 analysts who have issued recommendations on PG, three view it as a Strong Buy, eight views it as a Buy, 12 consider it a Hold, one thinks it is a Sell and another considers it a Strong Sell.

PG currently has a forward P/E ratio of 23.92, a reasonable figure considering the stock is trading about $10 below its 52-week high of $146.92.

Kimberly-Clark Corporation (KMB)

KMB makes and markets consumer products. KMB products are sold in supermarkets, drug stores, department stores, and elsewhere. Consumers are likely to flock to such stores much more frequently now that the economy is reopening.

KMB has a C POWR Ratings grade. The stock has Bs in the Value and Stability components along with Cs in the Momentum and Quality components. Click here to find out how KMB grades out in the Sentiment and Growth components of the POWR Ratings.

Of more than 70 stocks in the Consumer Goods space, KMB is ranked 37th. You can learn more about the stocks in this space by clicking here.

The analysts are bullish on KMB, setting an average target price of $146.34 for the stock. The analysts’ highest target price for KMB is $172. If KMB reaches the analysts’ average target price, it will have popped by more than 10%. Of the 14 analysts who have issued recommendations for KMB, one considers it a Strong Buy, three consider it a Buy, nine consider it a Hold, one considers it a Sell and one considers it a Strong Sell.

The Clorox Company (CLX)

CLX’s cleaning solutions were coveted during the pandemic. However, now that the scientific community insists coronavirus is primarily spread through exposure to human beings, the demand for CLX cleaning products has somewhat dissipated. It is particularly interesting to note CLX earnings dropped 126% from ’20 to ’21. However, CLX is likely to increase prices for products as the company’s supply costs increase.

Add in the fact that transportation costs are increasing and CLX has even more reason to hike prices. CLX revenue and profits are likely to increase that much more in the years ahead following its strategic acquisitions in the supplements, vitamins, and minerals segments. This is precisely why sharp investors will overlook CLX’s temporary setbacks.

CLX has a C POWR Rating grade. The stock has a B grade in the Quality component of the POWR Ratings along with Cs in the Momentum, Value, and Stability components. Investors who would like to find out how CLX fares in the Sentiment and Growth components can find out by clicking here.

CLX is ranked 49th of 71 stocks in the Consumer Goods space. Investors who would like to find out more about the stocks in this segment can do so by clicking here.