Even when the economy turns ugly, consumers still need to buy the basic products that consumer staples companies sell. This is why the sector is seen as defensive, a fact that is attracting investors right now. Notice how the Vanguard Consumer Staples ETF is only down around 3% so far in 2022, while the S&P 500 Index is off by roughly 20%.
And yet, there are still some overlooked bargains to be had in the consumer staples space, including Hormel Foods (NYSE: HRL) and Clorox (NYSE: CLX) . Let's take a closer look at both.
Hormel makes food products , including its namesake brand, SPAM, Skippy, and Planters, among many others. It has leading positions throughout the grocery store, as well as a growing international business and a unique food service division (it sells cooked meats that help keep costs in check for restaurants). There is a lot to like about the company, but the stock is down around 6% so far in 2022, notably lagging the average consumer staples stock.
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