#7 - Darling Ingredients (NYSE:DAR)
Darling Ingredients, Inc. (NYSE: DAR) is another company that provides essential products and services for the agricultural industry. It's also looking to expand its renewable diesel production, which is benefiting from subsidies from the U.S. government, which is taking an aggressive stance on climate change. And like ADM, Darling Ingredients is attractively valued with a forward P/E ratio of just 10.5x earnings.
This mid-cap company has shown steady YOY revenue and earnings growth since 2020. And earnings are expected to increase by 6.8% in the next 12 months. This growth is not necessarily reflected in the company's stock price. In the last 12 months, DAR stock is down 24%. However, analysts continue to raise their price targets for DAR stock with current forecasts for a 48.8% upside.
Darling is the only company on this list that doesn't pay dividends. And there may be some concern about the company's total debt of around 4.6 billion as of March 2023. But if you're looking for undervalued consumer staples stocks, DAR stock is a solid choice.
About Darling Ingredients
Darling Ingredients Inc develops, produces, and sells natural ingredients from edible and inedible bio-nutrients in North America, Europe, China, South America, and internationally. The company operates through three segments: Feed Ingredients, Food Ingredients, and Fuel Ingredients. It offers ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, feed, industrial, fuel, bioenergy, and fertilizer industries.
Read More - Current Price
- $33.06
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 7 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $53.44 (61.7% Upside)
Now that you have a list of consumer staples to consider, it's a good time to point out what consumer staples are and what they're not. Many of these companies are among the bluest of blue-chip companies. They deliver consistent revenue and, more importantly, earnings. They offer products and services that consumers need every day.
However, these are the definition of "build wealth slowly" stocks. They'll help you sleep easily at night, but they aren't stocks that are designed to grow at a pace that beats the market. When the market is surging, consumer staples stocks will tend to lag behind. However, these stocks often outperform the broader market when the market is in a correction.
The bottom line comes down to this. Consumer staples stocks may have a place in every portfolio, but if you're looking for market-beating growth, you should consider other areas of the market.
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