2 Consumer Stocks with Exciting Potential and 1 We Find Risky

VITL Cover Image

Consumer staples are considered safe havens in turbulent markets due to their inelastic demand profiles. The flip side is that they frequently fall behind growth industries when times are good, and this perception became a reality over the past six months as the sector was down 2.2% while the S&P 500 was up 16.5%.

The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Keeping that in mind, here are two resilient consumer stocks we’ve added to our cart and one best left ignored.

One Consumer Staples Stock to Sell:

USANA (USNA)

Market Cap: $546.5 million

Going to market with a direct selling model rather than through traditional retailers, USANA Health Sciences (NYSE: USNA) manufactures and sells nutritional, personal care, and skincare products.

Why Does USNA Worry Us?

  1. Annual revenue declines of 5.9% over the last three years indicate problems with its market positioning
  2. Modest revenue base of $899.2 million gives it less fixed cost leverage and fewer distribution channels than larger companies
  3. Sales were less profitable over the last three years as its earnings per share fell by 16.2% annually, worse than its revenue declines

USANA is trading at $29.91 per share, or 10.3x forward P/E. If you’re considering USNA for your portfolio, see our FREE research report to learn more.

Two Consumer Staples Stocks to Watch:

Vital Farms (VITL)

Market Cap: $2.10 billion

With an emphasis on ethically produced products, Vital Farms (NASDAQ: VITL) specializes in pasture-raised eggs and butter.

Why Is VITL a Top Pick?

  1. Products are flying off the shelves as its unit sales averaged 20.1% growth over the past two years
  2. Projected revenue growth of 31.3% for the next 12 months is above its three-year trend, pointing to accelerating demand
  3. Earnings per share grew by 109% annually over the last three years, massively outpacing its peers

Vital Farms’s stock price of $47.95 implies a valuation ratio of 33.4x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

Vita Coco (COCO)

Market Cap: $2.26 billion

Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ: COCO) offers coconut water products that are a natural way to quench thirst.

Why Does COCO Catch Our Eye?

  1. Products are seeing elevated demand as its unit sales averaged 7.8% growth over the past two years
  2. Earnings growth has massively outpaced its peers over the last three years as its EPS has compounded at 195% annually
  3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its returns are climbing as it finds even more attractive growth opportunities

At $40.71 per share, Vita Coco trades at 30.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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