The stock market has suffered undeniable losses as a result of the COVID-19 outbreak, but not all stocks have been part of the downfall. With growing concerns over food security and supply chain disruptions, some food stocks are seeing gains or at least maintaining share prices.
The first business benefiting is Campbell Soup Company (CPB), which has emerged as a big winner in America’s growing isolation ward, especially with canned goods flying off the supermarket shelves in recent weeks.
When you’re sick, there’s almost nothing more comforting than curling up on a couch with a bowl of soup. And clearly, investors have taken some comfort in holding CBP during the recent market selloff.
The company’s stock is up 36 percent over the last year, and is by far outperforming the market year-to-date, notching just a one percent loss while the S&P 500 is down 21 percent.
In the beverage market, PepsiCo, Inc. (PEP) is winning the soda wars right now. Despite not being immune from the market’s swoon in recent weeks, the beverage giant’s business has some protection against the worst of a recession if one comes soon.
Even amid the coronavirus crisis, PepsiCo isn’t afraid to make big moves. The company made a buyout bid to purchase Rockstar Energy Beverages for $3.85 billion. They also launched a campaign to promote the release of two soda flavors: Wild Cherry Zero Sugar and Pepsi Vanilla Zero Sugar.
A diverse product line and excellent execution has kept the stock on the fast track for years, rewarding shareholders with superior returns. Investors like the predictability that PepsiCo offers them, especially in tough times like these.
Lastly is Hormel Foods Corporation (HRL), the maker of Spam canned ham, Dinty Moore stew and other foods. It is certainly a sign of the times that loading up on canned meats has become more valuable to the American consumer than owning an iPhone, Air Jordans or a Model 3 sedan.
The stock has been a solid performer for years, grinding higher in a slow but steady uptrend that resumed in 2009 after a sell-off to a six-year low. The shares are trading at around $46, up from around $39 five days ago. This increase in stock price represents a 8.32 percent rise from its 52-week low price of $37 which was attained back May 2019.
While many people’s focus has shifted from investments to safety, food stocks like Campbell, PepsiCo and Hormel continue attracting buying interest during the pandemic, with customers loading up on household staples to weather the storm.