Stocks Analysis in Consumer Staples Sector: Case of Johnson & Johnson, Procter & Gamble and Coca-Cola

Abstract

The consumer staples sector has been a steady performer in the stock market and generally does not fluctuate with changes in the overall environment. Consumer staples mainly include household commodities, food, beverages and other components. Products that cannot be eliminated from the budget even under difficult economic conditions. Companies in this category are called non-cyclical companies and the economy tends to grow. Representative companies are Johnson & Johnson, Procter & Gamble and Coca-Cola. The three companies sell and produce different consumer goods. Therefore, can be more comprehensive to understand the situation of the main consumer sectors. By analyzing and comparing the economic conditions of these three representative companies, it is found that the consumer goods sector plays an important role. The strength of consumer staples stocks is stability, dividend growth and low volatility, while the weakness is slow growth. Objectively speaking, if the pursuit of stability, the main consumer sector investment is the best choice.