One Consumer Stock to Hold for the Long Haul — and Two to Leave on the Shelf
Consumer staples stocks are often viewed as the steady hands in a volatile market — reliable, defensive, and boring in the best possible way. But they can also be a drag when the economy is firing on all cylinders. Over the past six months, the sector's 2.6% return has lagged the S&P 500 by 3.9 percentage points, a reminder that even safe bets come with trade-offs.
Still, a handful of companies in this space have the kind of durable advantages that allow them to generate consistent earnings growth, no matter the macro environment. At StockStory, we focus on identifying those outliers. Below, we break down one consumer staple stock worth holding — and two we'd recommend steering clear of.
B&G Foods (NYSE: BGS)
Market Cap: $445.5 million
Founded as a small grocery store in New York City, B&G Foods now owns a sprawling portfolio of over 50 packaged food brands. But size doesn't always mean strength. The company has struggled with declining sales and mounting debt, and its stock currently trades at $5.61 per share — roughly 9.1x forward earnings. For context, that's cheap for a reason. "This isn't a value play; it's a value trap," says Mark Chen, a retail investor from Chicago. "I bought in thinking I was getting a bargain. Now I'm just hoping to break even."
Hormel Foods (NYSE: HRL)
Market Cap: $11.74 billion
Best known for SPAM, Hormel has long been a staple in American kitchens. But the company is facing headwinds from rising input costs and shifting consumer preferences toward fresher, less processed options. At $21.42 per share and a forward P/E of 14.3x, the stock isn't cheap enough to justify its sluggish growth. "Hormel feels like a company stuck in the 1990s," says Sarah Lin, a portfolio manager based in San Francisco. "They're still riding on brand nostalgia, but the numbers just aren't there anymore."
Coca-Cola (NYSE: KO)
Market Cap: $338.1 billion
A true giant in the beverage world, Coca-Cola remains a favorite among long-term investors for its global reach, brand loyalty, and reliable dividend. Trading at $78.60 per share — about 23.8x forward earnings — it's not cheap, but the premium is backed by decades of consistent performance. "Coca-Cola is the kind of stock you buy and forget about," says Tom Reeves, a retired financial advisor in Austin. "It's not going to double overnight, but it'll be there when everything else is falling apart."
One More Thing: Top 6 Stocks for This Week
This market is separating quality from hype faster than ever. AI-driven shifts are reshaping entire sectors with little warning. In a rotation this aggressive, you need more than a list of familiar names. Our AI system flagged Palantir before it surged 1,662%, AppLovin before it climbed 753%, and Nvidia before it soared 1,178%. Each week, it identifies six new names that pass the same rigorous tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now-household names like Nvidia (+1,326% between June 2020 and June 2025) as well as lesser-known winners like Tecnoglass (+1,754% over five years). Discover your next big opportunity with StockStory today.