Consumer Products

Can These 8 S&P Consumer Staples Stocks Make a Comeback?

Sysco’s stock closed at $53.99 on Wednesday, more than 37% below its 52-week high. Based on a price target of $59.43, the implied upside on the shares is 10%, and they trade at a multiple of nearly 28 times expected 2021 earnings. Sysco’s dividend yield is 3.33%.

Tyson Foods Inc. (NYSE: TSN) has seen its shares lose about 25% of their value over the past 52 weeks. The spread of COVID-19 through Tyson’s food processing plants broke the supply chain so badly that it and other processors were forced to “depopulate” animals that would normally have been slaughtered and sold for food. The company missed its first-quarter earnings estimate by 26%, and the expected earnings of $0.90 a share are 37% lower than just 90 days ago.

Shares closed Wednesday at $62.00, about 34% below the 52-week high of $94.24. At that price, the implied upside on the stock is around 14%. Shares trade at 12 times expected 2021 earnings. Tyson’s dividend yield is 2.71%.

Walgreens Boots Alliance Inc. (NASDAQ: WBA) stock has surrendered more than 26% of its value over the past year. Like all retail stores, Walgreens was hit hard by stay-at-home orders that sharply cut foot traffic. On Tuesday, CEO Stefano Pessina announced his resignation after five years in the position. During his tenure, Walgreens completed its massive merger with U.K.-based Boots Alliance and the share price dropped by nearly 60%.

Walgreens stock closed Wednesday at $41.16, about 37% below its 52-week high. With a price target of $42.76, the stock’s potential gain is less than 4%, and it trades at about eight times expected 2021 earnings. This Dow component pays a dividend yield of 4.54%, but given the valuation, such generosity may have to be reconsidered.

Molson Coors Beverage Co. (NYSE: TAP) has lost more than 35% of its value in the past year and trades at its lowest level in a decade. When the company reported first-quarter results in April, it estimated that 23% of its 2019 sales came from bars and restaurants and that the COVID-19 pandemic had reduced that percentage to zero. The company reports second-quarter results Thursday, and analysts expect per-share earnings of $0.68, a year-over-year decline of 55%, with revenues down almost 17%.

The stock closed at $36.73 on Wednesday, more than 40% below its 52-week high. With a target price of $43.94, the potential upside on the stock is around 20%, with a multiple of nearly 13 to expected 2021 earnings. Molson Coors has suspended its dividend.

Coty Inc. (NYSE: COTY) has dropped nearly 65% of its value in the past 52 weeks. Since completing its $12.5 billion acquisition of 43 beauty brands from Procter & Gamble in October 2016, Coty’s shares have declined by about 82%. The company named a new chief executive, Sue Nabi, on July 2, the company’s fifth CEO since the P&G deal. A recent acquisition of 20% of Kim Kardashian’s KKW Beauty empire may help. Or it may not.

Coty’s stock closed at $3.87 on Wednesday, more than 70% below its 52-week high. With a price target of $5.63, the implied upside is more than 45%, and the stock trades at about 15-times expected 2021 earnings. Coty does not pay a dividend.