5 Consumer Staples Stocks to Buy as Fed Keeps Interest Rates Unchanged

Geopolitical tensions, a delay in the interest rate cut and uncertainty over the impact of President Donald Trump’s tariffs have again made markets volatile. Although consumer confidence rebounded slightly in May after Trump temporarily paused the tariffs, investors remain concerned about the economy’s health.Given the uncertainty, it would be ideal to invest in safe-haven defensive stocks from the consumer staples sector such as Philip Morris International Inc. PM, Nomad Foods Limited( NOMD), Altria Group, Inc. MO, The Coca-Cola Company KO and Ingredion Incorporated INGR. Each of these stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Also, these stocks are from the low-beta category (beta greater than 0 but less than 1). Hence, the recommended approach is to invest in low-beta stocks with a high dividend yield and a favorable Zacks Rank.Fed in No Rush to Slash Interest RatesThe Federal Reserve left interest rates unchanged at the end of its June FOMC meeting in the current range of 4.25% to 4.5%. The move was highly expected as Federal Reserve Chairman Jerome Powell reiterated his earlier comments that the central bank will wait and watch the impact of Trump’s tariffs on inflation before deciding on resuming rate cuts.Policymakers also lowered their 2025 economic growth forecast to just 1.4% and increased their core inflation outlook to 3.1%. Understandably, the uncertainty over the impact of tariffs has raised concerns among market participants about the economy’s future. Although the United States has reached a trade deal with its biggest trading partner, China, it is yet to be seen how the new tariffs will impact the economy.Meanwhile, ongoing geopolitical tensions between Iran and Israel have also raised fears of a full-fledged war. Israel launched missile strikes on Iran last week, targeting its nuclear sites and reportedly eliminating several top scientists. Iran retaliated with a barrage of missile strikes on Israel over the weekend.Although the United States is yet to get directly involved in the conflict, tensions have been escalating, with Trump weighing in on striking Iran. The United States has also been mobilizing its warships and bombers in the Middle East. Washington’s involvement in the conflict could further escalate tension. This could keep markets volatile for a longer period.5 Low-Beta Consumer Staple Stocks With Growth PotentialPhilip Morris InternationalPhilip Morris International Inc. is progressing well with its business transformation in the face of consumers' rising health consciousness and stern regulations to dissuade smoking. To this end, PM has been expanding its reduced risk products (RRPs) or smoke-free products category, as evident from the success of IQOS (a heating tobacco device) that counts among one of the leading RRPs in the industry.Philip Morris International has an expected earnings growth rate of 13.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.3% over the past 60 days. PM currently carries a Zacks Rank #2. Philip Morris International has a beta of 0.52 and a current dividend yield of 2.96%.Nomad Foods LimitedNomad Foods Limited manufactures and distributes frozen foods primarily in the United Kingdom, Italy, Germany, Sweden, France and Norway. NOMD’s portfolio of frozen food brands includes Birds Eye, Iglo and Findus. Nomad Foods Ltd. is headquartered in Feltham, the United Kingdom.Nomad Foods has an expected earnings growth rate of 7.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4% over the last 60 days. NOMD presently sports a Zacks Rank #1. Nomad Foods has a beta of 0.75 and a current dividend yield of 3.96%.Altria Group, Inc.Altria Group, Inc.has been evolving with the changing industry dynamics. Given the rising health consciousness and stern government regulations to discourage smoking, MO has been moving beyond traditional cigarettes and expanding in the smokeless category.Altria Group’s expected earnings growth rate for the current year is 5.3%. The Zacks Consensus Estimate for its current-year earnings has improved 2.1% over the past 60 days. MO currently has a Zacks Rank #2. Altria Grouphas a beta of 0.60 and a current dividend yield of 6.86%.The Coca-Cola CompanyThe Coca-Cola Company’s strong brand equity, marketing, research and innovation help it to garner a market share of more than 40% in the non-alcoholic beverage industry. KO is putting its best foot forward to evolve its business model to become a total beverage company with something for everyone to drink. The Coca-Cola Company has coped with the industry-wide flattening of soda sales over the years by going on a buying spree and making investments in healthier alternatives like coffee, sparkling water and sports drinks.The Coca-Cola Company has an expected earnings growth rate of 3.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the past 60 days. KO currently carries a Zacks Rank #2. The Coca-Cola Company has a beta of 0.46 and a current dividend yield of 2.95%.Ingredion IncorporatedIngredion Incorporated is an ingredients solutions provider specializing in nature-based sweeteners, starches and nutrition ingredients. INGR serves diverse sectors in food, beverage, brewing, pharmaceuticals and other industries.Ingredion’s expected earnings growth rate for the current year is 6.1%. The Zacks Consensus Estimate for current-year earnings has improved 1.5% over the past 60 days. INGR carries a Zacks Rank #2. Ingredionhas a beta of 0.46 and a current dividend yield of 2.34%.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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 CocaCola Company (The) (KO): Free Stock Analysis Report Altria Group, Inc. (MO): Free Stock Analysis Report Philip Morris International Inc. (PM): Free Stock Analysis Report Ingredion Incorporated (INGR): Free Stock Analysis Report Nomad Foods Limited (NOMD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks