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Three Top Consumer Stocks for long-term Investment

by Ali Hassan
February 24, 2021
in Investing
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Let’s see the best possible investment options in the consumer market during the pandemic crisis.

The consumer market has been a bit shaky in most of the sectors due to uneconomical circumstances amid the COVID-19 pandemic. Still, many of the consumer stocks have performed remarkably well.

Among the consumer stocks, there are two most prominent segments including consumer discretionary business and consumer staples. Both of these consumer segments have their pros and cons.

As we move ahead into 2021, investors would be keen on what stocks they’re putting in their shopping carts. Consumer stocks are usually slow growth stocks and investors with the Buffet mindset are the perfect match for the long-term investment—in consumer stocks. So, let’s have a look at the three top consumer stocks for investment in the long-term.

Qurate Retail (QRTEA)

Qurate Retail (QRTEA) is an e-commerce service provider. The company partners with TV networks and e-commerce sites, mobile applications, social media, and similar outlets to provide video and digital commerce services worldwide.

In the last quarterly reports, the company came up with strong and promising results. Qurate generated net retail revenue of $3.4 billion, jumping by 10% year-over-year. While the online sales grew 15% to $2.1 billion, which were almost 62% of the total revenue. The diluted earnings were $0.80per share.

Moreover, the company delivered special dividends to its shareholders. The cash dividend of $1.50 per share was distributed on Sep. 14, 2020. Qurate also issued the newly preferred stock dividend of $3.00 per share. Following that, the company’s QVC has issued$500 million of 4.375% senior notes due 2028, and the proceeds will be used to tender for outstanding $500 million 5.125% senior notes due 2022.

Looking into the long-term, Qurate Retail (QRTEA) can be a solid bet. The company will be taking part in the Morgan Stanley Technology, Media, and Telecom Conference on Monday, March 1st. So, keep an eye on that event, there might be some exciting news coming.

Altria Group (MO)

One of the largest producers and markers of tobacco, Altria Group (MO) is one of the promising long-term bets in the consumer segment. For this year, the company has plans of investment to expand the availability and awareness of Altria’s non-combustible products.

Based on different investments in 2021, the company has updated the outlook for this year. The company has reaffirmed its full-year guidance and expects the adjusted diluted earnings to be between $4.49 to $4.62 per share, which means a growth of 3% to 6% compared to that in 2020. Altria Group (MO) is working on some key projects and anticipates 2021 to be a good year. So, MO is one of the potential investment options from the consumer segment.

General Mills (GIS)

General Mills (GIS) is well-positioned to move forward and has some solid plans to make things look good for the company.

During the first fiscal quarter of 2021, the demand for at-home food was on a rise. The company expects the demand to increase in the current and upcoming quarters, as the situations unfold. The CFO of General Mills, Kofi Bruce on Yahoo Finance Live told they are expecting high demand for the next quarter. He stated:

“We are continuing to make investments in capabilities that will help us when we come out on the other side of COVID. So higher operating costs, but offset by higher leverage as we’re getting a lot more operating leverage out of our assets. We certainly feel confident that demand will remain elevated for at least the next quarter.”

General Mills (GIS) has been one of the top-performing stocks in 2020 and seems to continue the bullish run this year.

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Tags: ‎Altria GroupAltria Group StockAltria Group Stock PriceConsumer StocksGeneral MillsGeneral Mills StockGeneral Mills Stock PriceGISGIS StockGIS ‎Stock PriceMOMO StockMO Stock PriceQRTEAQRTEA StockQRTEA Stock PriceQurate RetailQurate Retail Stock‎Qurate Retail Stock Price

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