4 beaten-down consumer giants analysts say have upside

Key Points

• Beaten-down large-cap stocks in the consumer defensive sector might present opportunities as the overall market edges toward its all-time high.
• Despite dropping 6.5% YTD, analysts forecast a 10.46% upside on KO, maintaining a Moderate Buy rating. 
• Both ADM and HSY are down close to 20% YTD, but analysts predict a double-digit upside for both consumer stocks. 

As the overall market edges closer to its all-time high, with the SPDR S&P 500 ETF Trust NYSE: SPY about 2% away from making a new all-time high, now might be the perfect time to start looking into beaten-down, large-cap stocks that are favorable among analysts. 

The consumer defensive sector is one area in particular that has several large-cap, blue-chip household names that are beaten down on the year but remain favorable with analysts with significant forecasted upside. 

So, let’s look at four consumer stocks that analysts see as having upside despite their lackluster, negative performance year-to-date.

Archer-Daniels-Midland NYSE: ADM

ADM, headquartered in Chicago, is a global food processing and commodities trading company operating on six continents. Specializing in oilseed and corn processing, agricultural services, and wheat milling, ADM provides vital ingredients for food, beverages, animal feed, and industrial products. 

Year-to-date, shares of ADM have plummeted almost 20% and are currently trading at a P/E of 10.48 and a market capitalization of $40.14 billion. Notably, the stock also offers a 2.39% dividend yield. However, its projected earnings growth is (11.85%).

Despite the YTD selloff and negative earnings growth projected, analysts are forecasting an upside for the stock. Based on seven analyst ratings, the stock has a consensus price target of $92.90, calling for almost 23% upside. Currently, ADM has a Moderate Buy rating.

Coca-Cola NYSE: KO

The Coca-Cola company needs no introduction. The beverage giant, which distributes syrups to exclusive bottler and distributors across over 200 countries, offering a wide array of nonalcoholic drinks like Fanta, Sprite, Minute Maid, and Powerade, spanning various beverage categories, boasts a market capitalization of $259 billion and a dividend yield of 3.07%.

Year-to-date, shares of KO are in the red, down 6.5%. However, that hasn’t stopped analysts from maintaining their bullish stance on the company. KO currently holds a Moderate Buy rating, better than the Hold consensus rating on consumer staples companies. The consensus price target of $66.20 forecasts an impressive 10.46% upside. 

Hershey NYSE: HSY

Another company that needs little to no introduction is the Hershey Company. Shareholders of the company responsible for Hershey’s Kisses, Reese’s, Kit Kat, and the Jolly Rancher won’t feel too sweet after the year the company is having. Year-to-date, HSY is down almost 20%.

That figure will leave a sour taste with its shareholders. However, analysts remain optimistic about HSY, which has a 5.03% projected earnings growth. While the stock has a Hold rating, based on nineteen analyst ratings, it has a consensus price target of $242.19, forecasting an impressive 28.29% upside. 

Procter & Gamble NYSE: PG

Procter & Gamble, the global consumer goods company renowned for household brands like Tide, Pampers, and Gillette, operates in over 70 countries. With a market cap exceeding $350 billion, a dividend yield of 2.53%, and a leading position in various consumer segments, investors have long viewed and favored the stock as a stable, conservative option. However, year-to-date shares of the consumer giant are down almost 2%, so should investors change their view?

Well, the analysts don’t think so. In fact, not only are the analysts bullish on the stock, but they are forecasting double-digit growth for shares of Procter & Gamble. Based on eighteen ratings, the stock has a Moderate Buy rating and a $166.41 price target, predicting a 12% upside.