Why are low-beta consumer staples stocks good during inflation?

Because demand for essential goods remains steady even as prices rise, providing stability in revenues and profits.

Is New York Times considered a consumer staple?

Yes, although a media company, it is classified as a consumer staple due to stable subscription revenues.

4 Low-Beta Consumer Staples Stocks to Navigate Surging Inflation

Q: What are low-beta stocks?

Low-beta stocks have a beta coefficient less than 1, meaning they are less volatile than the overall market.

As inflation surges and rate-hike fears rise, four low-beta consumer staples stocks—Coca-Cola (KO), ARKO Corp., B&G Foods, and New York Times—stand out for their stability and growth potential, according to Zacks.

With inflation surging and concerns over interest rate hikes mounting, investors are seeking safe havens in the stock market. According to a report by Zacks, four low-beta consumer staples stocks emerge as attractive options: Coca-Cola (KO), ARKO Corp. (ARKO), B&G Foods (BGS), and New York Times (NYT).

What Are Low-Beta Stocks?

Low-beta stocks are those that are less volatile than the overall market. Beta measures a stock's sensitivity to market movements; a beta below 1 indicates lower volatility. During inflationary periods, these stocks tend to offer relative stability.

The Four Recommended Stocks

Coca-Cola (KO)

Coca-Cola is a global beverage giant with strong presence in emerging markets. It is considered a defensive stock due to consistent demand for its products.

ARKO Corp. (ARKO)

ARKO operates a network of gas stations and convenience stores. It benefits from rising fuel prices and increased consumer spending on essentials.

B&G Foods (BGS)

B&G Foods is a packaged foods company with well-known brands. Demand for packaged foods remains steady even during inflation.

New York Times (NYT)

Although a media company, NYT is considered a consumer staple due to readers' reliance on its content. Subscription revenues provide stability.

What This Means for Investors

In an inflationary environment, low-beta consumer staples stocks can provide balance to investment portfolios. However, investors should assess each stock's individual risks and align with their investment goals.