From the kitchen pantry to the office breakroom, consumer staples are essential items that we use every day. Kimberly-Clark and PepsiCo are two of the world’s leading companies in this sector, and their success is a testament to the power of consumer staples. In this article, we will explore how these two companies have achieved their success and how their strategies can be applied to other businesses.
Kimberly-Clark: Cost-Cutting Initiatives and Pricing Actions Lead to Growth
Kimberly-Clark has been focused on cost-cutting initiatives and pricing actions in order to counter inflation and drive revenue growth. The company has implemented a range of measures to reduce costs, such as streamlining operations, eliminating non-essential activities, and consolidating production facilities. In addition, the company has been actively managing pricing and promotional strategies to ensure that their products remain competitively priced. These initiatives have enabled the company to improve their margins and remain profitable in a challenging economic environment. Furthermore, Kimberly-Clark has been named a Top Socially Responsible Dividend Stock by Dividend Channel, signifying a stock with above-average ”DividendRank” statistics including a strong 3.3% yield. This demonstrates the company’s commitment to delivering value to shareholders and its focus on long-term growth.
PepsiCo: Strong Quarterly Results and Raised Earnings Outlook
PepsiCo’s strong quarterly results and raised earnings outlook for 2023 have been a major driver of the company’s success. Revenue for the quarter ended June 30th was up 4.3% from the same period a year ago, and net income rose 8.7%. The company also raised its full-year earnings outlook to $5.50 per share, up from its previous estimate of $5.45 per share. PepsiCo attributed its success to its focus on cost-cutting initiatives and pricing actions to counter inflation, as well as strong consumer demand for its products. The company also announced a $15 billion share repurchase program to further boost its stock price. With such strong fundamentals, PepsiCo is well-positioned to continue its strong performance in the coming quarters.
Investing in Consumer Staples: Zacks Style Scores and Market-Beating Potential
The Zacks Style Scores are a great way to evaluate stocks and determine their potential for market-beating returns. Kimberly-Clark and PepsiCo both have strong scores in the Value and Momentum categories, indicating that these stocks have the potential to outperform the market. Additionally, their scores in the Growth category are above average, indicating that the stocks could be good investments for investors looking for growth potential. Furthermore, both stocks have a VGM score of B, indicating that they have a good combination of both value and growth potential.
In conclusion, Kimberly-Clark and PepsiCo are two stocks in the Consumer Staples sector that have the potential to generate market-beating returns. Investors looking for strong returns should consider these stocks and evaluate them using the Zacks Style Scores. Both stocks have strong scores in the Value, Momentum, and Growth categories, and have a VGM score of B. With their strong performance this year and potential for long-term returns, these stocks are worth considering for investors looking to invest in Consumer Staples.
In conclusion, the power of consumer staples is evident in the success of Kimberly-Clark and PepsiCo. Both companies have demonstrated their ability to stay ahead of the competition, providing high-quality products and services that have become staples in the lives of millions of consumers. By focusing on innovation and customer satisfaction, these two companies have been able to remain at the forefront of the consumer staples industry and set the standard for the rest of the market.