3 Consumer Staples Stocks to Buy Amid Growing Market Volatility

Markets showed signs of a recovery on Wednesday after soft inflation data somewhat eased concerns about a declining economy. However, the crisis is far from over as global tensions, President Donald Trump’s tariffs and uncertainty over the next rate cut persist, which could keep markets volatile.Given this situation, it would be safe to invest in consumer staples stocks, which are considered defensive. In this regard, Molson Coors Beverage Company TAP, Carriage Services, Inc. CSV and Tyson Foods TSN are good picks. Each of these stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Moreover, the stocks are from the low-beta category (beta greater than 0 but less than 1). Hence, the recommended approach is to invest in low-beta stocks with a high-dividend yield and a favorable Zacks Rank.Inflation Eases but Still HighFresh data released on Wednesday showed that the consumer price index (CPI) rose 0.2% sequentially in February, lower than the consensus estimate of a rise of 0.3%. Year over year, CPI increased 2.8% in February, which was also lower than analysts’ expectations of a rise of 2.9%.Core CPI, which excludes the volatile food and energy prices, climbed 0.2% sequentially in February and 3.1% from year-ago levels, both below the consensus estimates. Stocks tried to stage a comeback following the release of the report but volatility continues in markets.Inflation has been on the rise over the past few months and finally showed signs of cooling for the first time in February. However, price pressure continues to hurt consumers as inflation is still sharply higher than the Federal Reserve’s 2% target.Stubbornly high inflation compelled the Federal Reserve to halt rate cuts, with the central bank leaving interest rates unchanged in its current range of 4.25-4.5% in its January meeting, after slashing rates by 100 basis points between September and December 2024. The Federal Reserve has adopted a cautious approach and is unlikely to cut interest rates in its upcoming March meeting. The Fed had earlier hinted at fewer rate cuts in 2025, which market participants now believe could be just a single 25 basis point cut, that too not before the second half of the year.Trump Tariffs Trigger Recession FearsUncertainty over the economy’s health has grown over the past several weeks as investors fear that Trump’s tariff policies could trigger a global trade war, which could see the economy slipping into recession.Trump has already imposed 25% tariffs on several Canadian and Mexican imports. Additionally, he has imposed 10% tariffs on Chinese goods and shared plans to impose tariffs on the European Union.Trump's tariffs have intensified market turmoil, causing stock fluctuations. This volatility is expected to persist until investors gain a clearer understanding of his tariff policies.3 Low-Beta Consumer Staples Stocks With Growth PotentialMolson Coors Beverage CompanyMolson Coors Beverage Company, the global manufacturer and seller of beer and other beverage products, has an impressive diverse portfolio of owned and partner brands. TAP’s brands include global priority brands such as Blue Moon, Miller Lite, CoorsBanquet, Coors Light, Miller Genuine Draft and Staropramen, as well as regional champion brands like Carling and Molson Canadian.Molson Coors Beverage Company’s expected earnings growth rate for the current year is 6.5%. The Zacks Consensus Estimate for current-year earnings has improved 6.4% over the past 60 days. TAP presently sports a Zacks Rank #1. Molson Coors has a beta of 0.81 and a current dividend yield of 3.11%.Carriage ServicesCarriage Services is a leading provider of death care services and products in the United States. CSV provides a complete range of services relating to funerals, burials and cremations, including the use of funeral homes and motor vehicles, the performance of cemetery interment services and the management and maintenance of cemetery grounds.Carriage Services has an expected earnings growth rate of 21.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 13.8% over the past 60 days. CSV presently sports a Zacks Rank #1. Carriage Services has a beta of 0.91 and a current dividend yield of 1.18%.Tyson FoodsTyson Foods is the biggest U.S. chicken company that produces, distributes and markets chicken, beef, pork, and prepared foods. TSN’s products are marketed and sold primarily by sales staff to grocery retailers, grocery wholesalers, meat distributors, military commissaries, industrial food processing companies, chain restaurants, international export companies and domestic distributors.Tyson Foods’expected earnings growth rate for the current year is 23.6%. The Zacks Consensus Estimate for the current-year earnings has improved 8.8% over the past 60 days. TSN currently carries a Zacks Rank #2. Tyson Foods has a beta of 0.72 and a current dividend yield of 3.26%.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Molson Coors Beverage Company (TAP): Free Stock Analysis Report Tyson Foods, Inc. (TSN): Free Stock Analysis Report Carriage Services, Inc. (CSV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks