The consumer staples sector as a whole has seen superior returns over the past three years, climbing 48%. That being said, trading multiples have climbed as well, with the industry trading at a median 2.3x sales and 23.8x earnings. The stocks on today’s list appear more reasonably valued and might be worth investigating.
Rite Aid Corp. (NYSE: RAD) – $8.26
Drug Retailers
Rite Aid Corporation is a retail drugstore chain that sells prescription drugs and a range of other merchandise, which are referred to as front-end products. The Company’s drugstores’ primary business is pharmacy services. It operates approximately 4,570 stores in 31 states across the country and in the District of Columbia. Its front-end products include over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, food and beverages, greeting cards, seasonal merchandise and various other every day and convenience products.
- Market Cap: $8,515,216,882
- Revenues (LTM): $26,710,407,000
- EV/Revenue: 0.5x
- P/E: 4.1x
Goodyear Tire & Rubber Co. (NASDAQ: GT) – $30.29
Tires & Rubber Products
The Goodyear Tire & Rubber Company is a manufacturer of tires and its business is the development, manufacture, distribution and sale of tires and related products and services across the world. The Company operates in four segments: North America; Europe, Middle East and Africa (EMEA); Latin America, and Asia Pacific. Goodyear Tire & Rubber manufactures and sells tires under the Goodyear, Dunlop, Kelly, Debica, Sava and Fulda brands and various other Goodyear owned-house brands, and the private-label brands of certain customers.
- Market Cap: $8,175,372,290
- Revenues (LTM): $17,693,000,000
- EV/Revenue: 0.8x
- P/E: 3.1x
Pilgrims Pride Corp. (NASDAQ: PPC) – $23.25
Food Processing
Pilgrim’s Pride Corporation (Pilgrim’s) is a producer and seller of chicken products with operations in the United States, Mexico and Puerto Rico. The Company is engaged in the production, processing, marketing and distribution of fresh, frozen and value-added chicken products to retailers, distributors and foodservice operators. Pilgrim’s Pride focuses on the foodservice industry, principally chain restaurants and food processors, such as Chick-fil-A and Yum! Brands; distributors, such as US Foods and Sysco and retail customers, including grocery store chains, and wholesale clubs, such as Kroger, Wal-Mart, Costco, Publix and Sam’s Club.
- Market Cap: $6,036,729,871
- Revenues (LTM): $8,618,219,000
- EV/Revenue: 0.8x
- P/E: 7.4x
Seaboard Corp. (NYSE: SEB) – $3,526.01
Food Processing
Seaboard Corporation is an agribusiness and transportation company. Overseas, it is engaged in commodity merchandising, grain processing, sugar production and electric power generation. Its divisions include the Pork Division, Commodity Trading and Milling Division, Marine Division, Sugar Division, Power Division, Turkey segment and Other Businesses.
- Market Cap: $4,127,371,006
- Revenues (LTM): $6,445,798,000
- EV/Revenue: 0.6x
- P/E: 11.8x
Publix Super Markets Inc. (OTC: PUSH) – $19.61
Food Retail & Distribution
Publix Super Markets, Inc. is engaged in the business of operating retail food supermarkets in Florida, Georgia, Alabama, South Carolina, Tennessee and North Carolina. The Company sells grocery (including dairy, produce, deli, bakery, meat and seafood), health and beauty care, general merchandise, pharmacy, floral, and other products and services. The Company’s lines of merchandise include a variety of across the nation advertised and private label brands, as well as unbranded merchandise, such as produce, meat and seafood. Publix operates approximately 1,095 supermarkets.
- Market Cap: $15,559,440,000
- Revenues (LTM): $31,339,509,000
- EV/Revenue: 0.5x
- P/E: 8.7x
