Investment Opportunities in Consumer Staples Stocks for 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 01 2026
0mins
Source: Fool
- Market Performance Review: The S&P 500 has gained 78.3% from 2023 to 2025, while the consumer staples sector has only increased by less than 5%, indicating a potential contrarian investment opportunity for value investors amid the sector's underperformance.
- Procter & Gamble's Situation: Procter & Gamble faced a 14.5% stock price decline in 2025, and despite a slight recovery in early 2026, a 1% drop in sales volume and a 5% decrease in net earnings highlight significant challenges, with future growth expectations remaining weak.
- Kimberly-Clark's Acquisition Plan: Kimberly-Clark anticipates achieving $2.1 billion in annual cost synergies from its acquisition of Kenvue, and while short-term performance is lackluster, this strategy may provide better growth prospects in the long run, attracting value investors' interest.
- Dividend Appeal: Procter & Gamble and Kimberly-Clark offer dividend yields of 2.9% and 5%, respectively, with both companies having a long history of increasing dividends, providing stable cash flow for income-seeking investors despite market pressures.
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Analyst Views on PG
Wall Street analysts forecast PG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PG is 164.50 USD with a low forecast of 150.00 USD and a high forecast of 180.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
10 Buy
7 Hold
0 Sell
Moderate Buy
Current: 158.610
Low
150.00
Averages
164.50
High
180.00
Current: 158.610
Low
150.00
Averages
164.50
High
180.00
About PG
The Procter & Gamble Company is focused on providing branded consumer packaged goods to consumers across the world. The Company’s segments include Beauty, Grooming, Health Care, Fabric & Home Care and Baby, Feminine & Family Care. The Company’s products are sold in approximately 180 countries and territories primarily through mass merchandisers, e-commerce, including social commerce channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores, including airport duty-free stores), high-frequency stores, pharmacies, electronics stores and professional channels. It also sells direct to individual consumers. It has operations in approximately 70 countries. It offers products under brands, such as Head & Shoulders, Herbal Essences, Pantene, Rejoice, Olay, Old Spice, Safeguard, Secret, SK-II, Braun, Gillette, Venus, Crest, Oral-B, Ariel, Downy, Gain, Tide, Always, Always Discreet, Tampax, Bounty and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Comparison of FSTA and RSPS Consumer Staples ETFs
- Cost Comparison: FSTA's expense ratio is just 0.08%, significantly lower than RSPS's 0.40%, meaning investors pay only $8 annually for every $10,000 invested in FSTA compared to $40 for RSPS, greatly reducing investment costs.
- Performance Metrics: As of February 3, 2026, FSTA boasts a 1-year return of 8.34%, surpassing RSPS's 7.01%, indicating that FSTA has provided higher returns over the past year, potentially attracting yield-seeking investors.
- Risk Assessment: Over the past five years, FSTA's maximum drawdown stands at 16.57%, lower than RSPS's 18.61%, showcasing FSTA's relative stability during market fluctuations, which may appeal to risk-averse investors.
- Holding Structure: FSTA holds 96 stocks primarily focused on consumer defensive names, while RSPS equally weights 36 stocks, leading to a strategy where FSTA may achieve higher returns when top companies perform well but also faces greater volatility risk.
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Comparison Analysis of FSTA and RSPS ETFs
- Expense Ratio Advantage: FSTA boasts a significantly lower expense ratio of 0.08% compared to RSPS's 0.40%, meaning investors pay only $8 annually for every $10,000 invested in FSTA versus $40 for RSPS, enhancing FSTA's cost-effectiveness for long-term investors.
- Return Performance Discrepancy: While RSPS offers a slightly higher dividend yield, FSTA has outperformed in one-year and five-year total returns, indicating that FSTA may provide better capital appreciation opportunities amid market fluctuations.
- Holdings Structure Comparison: FSTA holds 96 stocks, primarily concentrated in large consumer brands like Costco, Walmart, and Procter & Gamble, which account for nearly 37% of its assets, whereas RSPS evenly distributes its 36 holdings, ensuring a balanced risk and return profile.
- Investment Strategy Choice: FSTA's concentrated holdings strategy may yield excess returns when large brands perform well, but it also poses greater risks during market downturns, while RSPS's equal-weight strategy helps mitigate single-stock volatility, making it suitable for risk-averse investors.
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Investor Confusion in AI Competition
- Investor Sentiment Shift: Following earnings calls from tech giants like Microsoft, Google, and Amazon, investor confusion about future directions led to Amazon losing over $300 billion in market cap, reflecting strong skepticism regarding its $200 billion AI investment plan.
- Capital Expenditure Comparison: Google announced an increase in capital expenditures to $175 billion to $185 billion, exceeding the expected $115 billion to $120 billion, indicating a proactive approach in AI despite challenges from slowing ad revenues.
- Changing Competitive Landscape: With Alphabet's ongoing investments and successes in AI, YouTube's user base has grown to 750 million, and Waymo's self-driving business is outpacing Tesla, suggesting a strengthening competitive advantage that may attract more investor interest.
- Mixed Market Reactions: Despite OpenAI and Anthropic's strong performance in AI, Microsoft's Copilot sales have been disappointing, highlighting investor concerns about its future growth and reflecting differing levels of confidence across companies.
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Comparison of Consumer Staples ETFs: XLP vs IYK
- Cost Comparison: State Street's XLP offers a significantly lower expense ratio of 0.08% compared to iShares' IYK at 0.38%, which means that for the same returns, XLP can provide higher net returns for long-term cost-conscious investors.
- Portfolio Composition: XLP focuses exclusively on 36 consumer staples stocks without including healthcare or basic materials, while IYK holds 54 stocks, with 85% in consumer defensive and 11% in healthcare, indicating that IYK's diversified strategy may appeal to investors seeking broader exposure.
- Returns and Risks: Over the past year, XLP delivered a return of 9.9% compared to IYK's 11.3%, and while IYK's returns are slightly higher, XLP's maximum drawdown of 16.31% indicates a higher risk profile during market volatility.
- Market Performance: XLP's top holdings include Walmart and Costco, providing a strong retail foundation, whereas IYK leans more towards product manufacturers, offering investors a defensive investment option in healthcare despite its higher fees.
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Comparison Analysis of Consumer Staples ETFs
- Cost and Yield Comparison: Vanguard Consumer Staples ETF (VDC) charges an annual fee of just 0.09%, significantly lower than Invesco Food & Beverage ETF (PBJ) at 0.61%, while VDC also offers a higher dividend yield of 2.1% compared to PBJ's 1.7%, making VDC more appealing for income-focused investors.
- Portfolio Composition Differences: VDC encompasses over 100 consumer stocks, with 98% in consumer defensive, whereas PBJ focuses on 31 food and beverage companies, including Sysco and Corteva, which may increase specific company risk due to its concentrated investments.
- Market Performance and Risk: Over the past year, VDC achieved a return of 4.6%, while PBJ only managed 1.2%, and VDC's maximum drawdown of 16.55% is lower than PBJ's 15.84%, indicating VDC's relative stability amid market volatility.
- Investment Strategy Choices: As a pure index fund, VDC provides comprehensive defensive exposure to consumer staples, while PBJ employs quantitative analysis for a concentrated portfolio, charging nearly seven times the fees of VDC, yet recent performance suggests this may not justify the cost, prompting investors to choose wisely.
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Investors Nervous About Robinhood's Bitcoin Correlation
- Labor Data Impact: The upcoming nonfarm payroll report on Wednesday is expected to show an addition of 80,000 jobs, and if the data comes in weak, it could lead the Fed to continue cutting rates, which would positively impact the stock market, reflecting concerns about economic slowdown.
- CVS Health Earnings Outlook: CVS Health is set to report quarterly results on Tuesday, and despite being affected by the Trump administration's proposed reimbursement rates for Medicare Advantage, Cramer believes CEO David Joyner's management is impressive and the stock is worth owning.
- DuPont Performance Highlights: DuPont's earnings report on the same day is expected to showcase CEO Lori Koch's success in improving the company's performance, with the stock soaring 58% over the past six months, reflecting the effectiveness of its electronics business spin-off strategy.
- Robinhood Trading Risks: Robinhood will report earnings on Tuesday, and due to its close correlation with cryptocurrency markets, investors are concerned, as the stock has dropped nearly 27% year-to-date, significantly underperforming the S&P 500's 1.3% gain.
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Comparison of FSTA and RSPS Consumer Staples ETFs
- Cost Comparison: FSTA's expense ratio is just 0.08%, significantly lower than RSPS's 0.40%, meaning investors pay only $8 annually for every $10,000 invested in FSTA compared to $40 for RSPS, greatly reducing investment costs.
- Performance Metrics: As of February 3, 2026, FSTA boasts a 1-year return of 8.34%, surpassing RSPS's 7.01%, indicating that FSTA has provided higher returns over the past year, potentially attracting yield-seeking investors.
- Risk Assessment: Over the past five years, FSTA's maximum drawdown stands at 16.57%, lower than RSPS's 18.61%, showcasing FSTA's relative stability during market fluctuations, which may appeal to risk-averse investors.
- Holding Structure: FSTA holds 96 stocks primarily focused on consumer defensive names, while RSPS equally weights 36 stocks, leading to a strategy where FSTA may achieve higher returns when top companies perform well but also faces greater volatility risk.
See More
Comparison Analysis of FSTA and RSPS ETFs
- Expense Ratio Advantage: FSTA boasts a significantly lower expense ratio of 0.08% compared to RSPS's 0.40%, meaning investors pay only $8 annually for every $10,000 invested in FSTA versus $40 for RSPS, enhancing FSTA's cost-effectiveness for long-term investors.
- Return Performance Discrepancy: While RSPS offers a slightly higher dividend yield, FSTA has outperformed in one-year and five-year total returns, indicating that FSTA may provide better capital appreciation opportunities amid market fluctuations.
- Holdings Structure Comparison: FSTA holds 96 stocks, primarily concentrated in large consumer brands like Costco, Walmart, and Procter & Gamble, which account for nearly 37% of its assets, whereas RSPS evenly distributes its 36 holdings, ensuring a balanced risk and return profile.
- Investment Strategy Choice: FSTA's concentrated holdings strategy may yield excess returns when large brands perform well, but it also poses greater risks during market downturns, while RSPS's equal-weight strategy helps mitigate single-stock volatility, making it suitable for risk-averse investors.
See More
Investor Confusion in AI Competition
- Investor Sentiment Shift: Following earnings calls from tech giants like Microsoft, Google, and Amazon, investor confusion about future directions led to Amazon losing over $300 billion in market cap, reflecting strong skepticism regarding its $200 billion AI investment plan.
- Capital Expenditure Comparison: Google announced an increase in capital expenditures to $175 billion to $185 billion, exceeding the expected $115 billion to $120 billion, indicating a proactive approach in AI despite challenges from slowing ad revenues.
- Changing Competitive Landscape: With Alphabet's ongoing investments and successes in AI, YouTube's user base has grown to 750 million, and Waymo's self-driving business is outpacing Tesla, suggesting a strengthening competitive advantage that may attract more investor interest.
- Mixed Market Reactions: Despite OpenAI and Anthropic's strong performance in AI, Microsoft's Copilot sales have been disappointing, highlighting investor concerns about its future growth and reflecting differing levels of confidence across companies.
See More
Comparison of Consumer Staples ETFs: XLP vs IYK
- Cost Comparison: State Street's XLP offers a significantly lower expense ratio of 0.08% compared to iShares' IYK at 0.38%, which means that for the same returns, XLP can provide higher net returns for long-term cost-conscious investors.
- Portfolio Composition: XLP focuses exclusively on 36 consumer staples stocks without including healthcare or basic materials, while IYK holds 54 stocks, with 85% in consumer defensive and 11% in healthcare, indicating that IYK's diversified strategy may appeal to investors seeking broader exposure.
- Returns and Risks: Over the past year, XLP delivered a return of 9.9% compared to IYK's 11.3%, and while IYK's returns are slightly higher, XLP's maximum drawdown of 16.31% indicates a higher risk profile during market volatility.
- Market Performance: XLP's top holdings include Walmart and Costco, providing a strong retail foundation, whereas IYK leans more towards product manufacturers, offering investors a defensive investment option in healthcare despite its higher fees.
See More
Comparison Analysis of Consumer Staples ETFs
- Cost and Yield Comparison: Vanguard Consumer Staples ETF (VDC) charges an annual fee of just 0.09%, significantly lower than Invesco Food & Beverage ETF (PBJ) at 0.61%, while VDC also offers a higher dividend yield of 2.1% compared to PBJ's 1.7%, making VDC more appealing for income-focused investors.
- Portfolio Composition Differences: VDC encompasses over 100 consumer stocks, with 98% in consumer defensive, whereas PBJ focuses on 31 food and beverage companies, including Sysco and Corteva, which may increase specific company risk due to its concentrated investments.
- Market Performance and Risk: Over the past year, VDC achieved a return of 4.6%, while PBJ only managed 1.2%, and VDC's maximum drawdown of 16.55% is lower than PBJ's 15.84%, indicating VDC's relative stability amid market volatility.
- Investment Strategy Choices: As a pure index fund, VDC provides comprehensive defensive exposure to consumer staples, while PBJ employs quantitative analysis for a concentrated portfolio, charging nearly seven times the fees of VDC, yet recent performance suggests this may not justify the cost, prompting investors to choose wisely.
See More
Investors Nervous About Robinhood's Bitcoin Correlation
- Labor Data Impact: The upcoming nonfarm payroll report on Wednesday is expected to show an addition of 80,000 jobs, and if the data comes in weak, it could lead the Fed to continue cutting rates, which would positively impact the stock market, reflecting concerns about economic slowdown.
- CVS Health Earnings Outlook: CVS Health is set to report quarterly results on Tuesday, and despite being affected by the Trump administration's proposed reimbursement rates for Medicare Advantage, Cramer believes CEO David Joyner's management is impressive and the stock is worth owning.
- DuPont Performance Highlights: DuPont's earnings report on the same day is expected to showcase CEO Lori Koch's success in improving the company's performance, with the stock soaring 58% over the past six months, reflecting the effectiveness of its electronics business spin-off strategy.
- Robinhood Trading Risks: Robinhood will report earnings on Tuesday, and due to its close correlation with cryptocurrency markets, investors are concerned, as the stock has dropped nearly 27% year-to-date, significantly underperforming the S&P 500's 1.3% gain.
See More
