(via ZEXPR) Because of the pandemic that started in the earlies of 2020 till this date, the consumer staples industry was supporting and helping out the majority that was found stuck in their households with their everyday needs.

As a result, the top consumer staples stocks did relatively well in 2020. According to Bitteks analyst, “what’s thought-provoking here is that, what precisely is making consumer stocks purchasable?”.

To put the consumer staples in easy words to understand, these are companies that manufacture and then trade products that we think are vital for our daily use. Now, since these products are consumed by their consumers on daily basis, it means that these consumer staple companies were turned into non-recurrent and steady even during the chaos created by the pandemic because of COVID-19.

Let us take the example of some fast-food companies that deal with the deliveries as well. These are the companies such as Chipotle(CMG), McDonald’s, and Burger King, to name a few, who made their majority of the earnings during the pandemic. This increase in sales was due to the huge demand of consumers to get their food delivered to their doorsteps since, obviously, no one could go out during the lockdown. Even at times during this pandemic, people preferred to get the food delivered in fear of catching the COVID-19.

Continuing to take the example of CMG, After the pandemic, the stock gain for this company took off to a 190% hit last March. Similarly, with Costco (COST), analyst and consumers quickly flocked their way towards COST. The company’s wholesale activities were the perfect opportunity for the consumers to take advantage of during the pandemic to get their daily requirements of products at a bargain.

Irrespective, it is evident that the people will continue to depend on the consumer staples companies even if the pandemic is to be over anytime soon (Hopefully).

If this volatile movement in the higher growth sectors has made you think about looking into the more stable options then the following few options for consumer staples will be the start of your research.

2 Top Consumer Staples Stocks to Watch

  • Sprouts Farmers Market Inc. (SFM)
  • Beyond Meat Inc. ( BYND)

Sprouts Farmers Market Inc. (SFM)

Sprouts, Arizona-based, is a supermarket that aims towards providing natural food opened its first-ever store in 2002. Their ultimate goal is to make natural food accessible to everyone at affordable rates. From 2002 to this date they have now a total of 360 stores in 23 states around the US. With the heavy consumption of processed food in today’s world, Sprout is a one-stop location for all healthy and natural food consumers.

So, it has been analyzed that traders are now heading towards SFM stocks, as it was reported about its recent earnings.

However, SFM net sales were recorded to be at $1.6 billion in its 4th quarter, making an almost 17% increase over the past few years. Besides the uprising of its net sales, the company doubled its net income as well at the same time. Over the years Sprout also enjoyed the rise in its earning per share-EPS by 114%, which excited the investors. Just like a cherry on top, Company also managed to generate record earnings and cash flow in the last quarter as well.

Two noteworthy factors were noted by CEO Jack Sinclair regarding Sprout’s rapid growth throughout fiscal 2020. One of the factors was, there was a shocking increase in its e-commerce by 340% which was due to the pandemic which led people to shop from home.

The second factor that played in its rapid sales growth, was its 22 new stores even though there was an economic fall due to the pandemic which created chaos.

Even during such hard times, Sprout stood tall in its glory.

Beyond Meat Inc.(BYND)

Beyond Meat Inc, is another consumer staple company that made its way on the list of top consume staples after SFM. Beyond Meat is a concept turned into a reality where they entertain their consumers with a plant-based meat substitute. This means that they produced products that are plant-based but they look and taste close to meat. The substitute used for this is all-natural based, no artificial alternatives are being used.

The products produced by BYND are mostly enjoyed by the vegan. But these products are not just limited to them. Just like with SFM, investors are also rushing towards this stock as well after its value of stock went up by 150% after there was a low curve of sales found in March.

Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.