Zacks Investment Ideas feature highlights: The Consumer Staples Select Sector SPDR ETF, Sanderson Farms, Inc., Tyson Foods, Inc. and Hormel Foods Corp

Zacks Investment Ideas feature highlights: The Consumer Staples Select Sector SPDR ETF, Sanderson Farms, Inc., Tyson Foods, Inc. and Hormel Foods Corp

Zacks Equity Research
8 min read
Explore stocks on Coinbase

For Immediate Release

Chicago, IL – January 21, 2022 – Today, Zacks Investment Ideas features: The Consumer Staples Select Sector SPDR ETF XLP, Sanderson Farms, Inc. SAFM, Tyson Foods, Inc. TSN and Hormel Foods Corp. HRL.

Pound the Meat: 3 Meat Product Stocks Outperforming the Market

The market continued its recent selloff yesterday as the Nasdaq plunged below its 200-day moving average like a hot knife through butter, falling -1.15% to end at its lowest level since October of last year. The selling intensified into the closing bell, sending the Nasdaq into correction territory. The other indices followed suit with the S&P 500 shedding -0.97% and the Dow declining by -0.96%. All three indices are down on the year.

The VIX index spiked 4.65% to close at its highest level in more than a month. Over the past year, the muted spikes in volatility have represented good buying opportunities as a ‘buying the dip’ strategy has performed well. But with just eight trading days left in January, it remains to be seen if bulls will make a stand or if this is simply the beginning of a larger down move in the market.

The major averages are attempting to draw a line in the sand today as the Nasdaq looks to reclaim its 200-day moving average. We’ll see how it all unfolds into the close.

Either way, it’s extremely likely that 2022 will not see the 20-30% annual gains that the markets have enjoyed in the recent past. Volatility is here to stay after being fairly nonexistent last year, so it’s a matter of targeting the right sectors and industry groups when choosing optimal investments for your portfolio.

Two defensive sectors that tend to outperform during market downturns are consumer staples and utilities, and we’re seeing that play out right now with staples looking like the stronger of the two. Staples as a group hit a new high earlier this month and are holding up well, less than 2% away from that all-time high price. The Consumer Staples Select Sector SPDR ETF is a great way to gain exposure to many of the companies that are holding up well through the recent volatility.

The Consumer Staples Select Sector SPDR ETF is outperforming the market to kick off the new year. Last year, XLP found support multiple times at its 200-day moving average, a good sign for the bulls. XLP continues to make a series of higher highs and should hold up well this year through any market downturns.

Below we will analyze three consumer staples companies, two of which are included in the XLP holdings. All three firms are components of the Zacks Food – Meat Products industry, which ranks in the top 18% out of all 254 Zacks Ranked Industries. Investing in the top-performing industry groups provides a constant tailwind to your investing success.

Terms and Privacy Policy
Privacy Dashboard
More Info

Recommended Stories