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3 Stocks up Double-Digit Percentages in 2022

So far in 2022, there have been few places for investors to park their cash safely. Pullbacks have been extensive, and bears have kept marching forward.

The Fed has become hawkish, supply chains have been disrupted, and geopolitical issues are still at play. Needless to say, we’ve found ourselves in a highly unique economic environment after a once-in-a-lifetime pandemic.

There have been a few bright spots in this volatility-packed market, and believe it or not, there are stocks out there up double-digit percentages year-to-date.

Three stocks – Campbell Soup CPB, The Chef’s Warehouse CHEF, and Kellogg’s K – have all enjoyed strong price action throughout 2022, up by at least 10%. The year-to-date chart below illustrates the performance of all three companies while blending in the S&P 500.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

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As we can see, all three companies’ shares have been much stronger than the S&P 500.

The story remains the same upon expanding the time horizon to cover the last year – all three companies’ shares have provided a much higher return than the general market.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

In addition, all three companies reside in the Zacks Food - Miscellaneous Industry, which is currently ranked in the top 26% of all Zacks Industries and a part of the Zacks Consumer Staples Sector. Due to its favorable Zacks Industry ranking, we expect the industry to outperform the market over the next three to six months.

Let’s examine each company a little closer to understand better why they would be solid portfolio adds.

Campbell Soup

Campbell Soup CPB is a worldwide manufacturer and marketer of high-quality, branded convenience food products. The company is a Zacks Rank #2 (Buy) with an overall VGM Score of an A and resides within the Zacks Consumer Staples Sector.

In addition to a favorable Zacks Rank, the company has relatively solid valuation levels. Its current forward earnings multiple of 17.1X is well below 2020 highs of 20.9X and just above its five-year median value of 15.9X.

In addition, shares trade at an enticing 16% discount relative to the Zacks Consumer Staples Sector.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

CPB also rewards its shareholders via its 3.1% annual dividend yield with a payout ratio sitting sustainably at 52% of earnings. The company has increased its dividend once over the last five years, with a five-year annualized dividend growth rate of 1.4%.

Furthermore, the yield is much higher than that of the Zacks Consumer Staples Sector.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

The Chef’s Warehouse

The Chefs' Warehouse CHEF is a distributor of specialty food products in the United States. The company sports the highly coveted Zacks Rank #1 (Strong Buy) with an overall VGM Score of a B and resides within the Zacks Consumer Staples Sector.

CHEF has robust forecasted bottom and top-line growth, and analysts have been substantially upping their earnings outlook over the last 60 days. The $0.35 per share estimate for the upcoming quarterly release reflects a triple-digit 775% growth in the bottom-line from the year-ago quarter.

Additionally, the $1.22 EPS estimate for the current fiscal year pencils in a quad-digit 2540% growth in earnings year-over-year.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

The Zacks Consensus Sales Estimate of $600 million for the upcoming quarter represents a substantial 40% increase in revenue compared to year-ago quarterly sales of $422 million. Looking ahead a bit, the $2.4 billion revenue estimate for FY22 forecasts a 38% expansion in the top-line year-over-year.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Kellogg’s

Kellogg Company K manufactures and markets ready-to-eat cereals and convenience foods with a balanced portfolio of cereal and snack products. The company is a Zacks Rank #3 (Hold) with an overall VGM Score of a B.

The cereal giant has respectable valuation levels, further displayed by its Style Score of a B for Value. Its 17.7X forward earnings multiple is nicely below 2020 highs of 18.6X and represents an enticing 13% discount relative to the Zacks Consumer Staples Sector.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

For investors with an appetite for income, K has that covered with its annual dividend that yields 3.2% and a payout ratio sitting at 56% of earnings. Impressively, the company has increased its dividend four times over the past years, with a five-year annualized dividend growth rate of a respectable 1.6%.

Additionally, the yield is much higher than that of the Zacks Consumer Staples Sector.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Bottom Line

Believe it or not, a fair number of stocks have provided investors with a positive year-to-date performance, such as all three stocks above. They have weathered the storm, and due to their favorable Zacks Industry Ranking, their runs don’t seem to be over quite yet.

In addition, the Consumer Staples Sector is generally more defensive, and companies residing within it can generate revenue in all sorts of economic environments.

All three stocks would be solid choices for investors looking to add an additional layer of defense to their portfolios amid a volatile market. Furthermore, two of the companies – CPB and K – provide a reliable income stream, undoubtedly another major positive during market weakness.


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
 
Campbell Soup Company (CPB) : Free Stock Analysis Report
 
Kellogg Company (K) : Free Stock Analysis Report
 
The Chefs' Warehouse, Inc. (CHEF) : Free Stock Analysis Report
 
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