2 High-Yield Consumer Staples Stocks Ready to Deliver Big Returns
From Nasdaq: 2025-02-05 07:45:00
Tyson Foods and Clorox Company are high-yielding consumer staples stocks with historically low valuations and yields above 3%. Total returns, including dividends and share price increases, could reach high double-digits by the end of 2026.
Tyson Foods and Clorox reported CQ4 2024 results showing margin strength, earnings quality, and improved operational efficiency. Both companies increased guidance for 2025, with Clorox forecasting a gross margin expansion and Tyson expecting a 15% increase in adjusted operating margin at the midpoint.
Analysts have mixed responses to the earnings releases but are generally bullish on the market for consumer staples like Tyson and Clorox. Consensus price targets are rising, indicating potential for stock price increases. Technical action suggests building positions at lower prices for leverage when the rebound begins.
Institutions bought Tyson and Clorox stocks in 2024 but started selling at the end of the year, creating a bearish market in January 2025. Investors should consider the potential risks and opportunities in these consumer staples stocks before making any trades.
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