We recently published a list of 10 Best Consumer Staples Stocks to Buy According to Analysts. In this article, we are going to take a look at where Keurig Dr. Pepper Inc. (NASDAQ:KDP) stands against other best consumer staples stocks to buy according to analysts.
Consumer confidence is plunging in the US. It dropped further in March, with the Conference Board reporting the future outlook falling to the lowest level in more than a decade. The Conference Board’s monthly confidence index dropped to 92.9, reflecting a 7.2-point slip and making March the fourth consecutive month of index contraction. The index calculates respondents’ outlook on job prospects, business, and income. The fall was higher than analyst estimates, as economists surveyed by Dow Jones estimated a reading of 93.5.
That is not all: the measure for future estimates is painting an even bleaker story with the index falling to 65.2, reflecting a 9.6-point drop and making it the lowest number in 12 years. The reading is also considerably below the 80 level, which is typically considered a benchmark signal for an incoming recession.
While the confidence drop was spread across income groups, it was primarily driven by a decline in consumers aged 55 or older. These readings are materializing at a time uncertainty and concerns regarding President Trump’s tariffs are already looming on the market. These concerns have coincided with other surveys exhibiting waning consumer sentiment and a volatile stock market. CNBC reported that Stephanie Guichard, senior economist, global indicators at The Conference Board, said the following about the situation:
“Consumers’ optimism about future income — which had held up quite strongly in the past few months — largely vanished, suggesting worries about the economy and labor market have started to spread into consumers’ assessments of their personal situations.”
On March 14, CNBC reported that while headwinds like persistent inflation and high interest rates were already affecting companies, they now have to deal with additional obstacles such as worsening consumer sentiment, tariffs that go on and off, and mass government layoffs. Over the last weeks, investor presentations and earnings calls have shown a distinct trend: consumer-facing businesses and retailers are warning that fiscal Q1 2025 sales are coming in softer than expected. 2025 may prove to be a year tougher than what analysts initially estimated.
READ ALSO: 11 Best Coffee Stocks to Buy Now and 10 Best Department Store Stocks to Invest in.
Consumer staples are generally considered a safe haven amid recession and market volatility. We discussed how the consumer staple sector is expected to perform and whether it can be considered a safety net amid the current market dynamics in a recently published article on 12 Best Household Stocks to Buy According to Hedge Funds. Here is an excerpt from the article to shed light on the situation:
