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5 stocks to watch: Consumer goods
The consumer goods sector is more than a safe port during economic storms. There’s enormous potential for bargains, growth, impressive yields and yes, hedging against volatility.
As part of a series examining the dynamics and opportunities presented by specific market sectors, we’re going to be exploring the world of consumer stocks.
In this article, we’ll be highlighting five very different consumer goods stocks each worth your attention for very different reasons, including:
- One potentially undervalued growth stock
- A company with an unusually volatile share price
- A cultural icon that could be due for a critical reappraisal
So, if you want to discover how AI-powered smart homes, Tesla’s PR problems and even Barney the dinosaur (yes, seriously) are set to influence the consumer goods sector in the coming months, you’re in the right place.
Coca-Cola (KO)
What it does
A multinational drinks company that delights institutional investors.
Why it matters
In times of turmoil, investors seek refuge in defensive stocks. And Coca-Cola has historically proven to be among the best hedges against market volatility. It might not be the most exciting stock pick you’ve ever been given, but there’s much to be said for the steady dividends, predictable growth and iconic brand power of Coca-Cola.
If it’s good enough for Berkshire Hathaway, Blackrock, Vanguard and J.P Morgan…
What to watch
Coca-Cola isn’t just a defensive consumer staple. The company is performing well by its own standards and even better compared to its main rival Pepsi. Coca-Cola's stock reached a 12-month high of $73 a share in early April and boasts an impressive 25 percentage point swing on the S&P 500’s performance in the same period.[1]
Mattel (MAT)
What it does
World’s largest toy manufacturer, maker of Barbie and Hot Wheels
Why it matters
Could Mattel be an undervalued growth stock worth your attention[2]?
Mattel stock hit a 52-week low at the start of April 2025, and with much of its manufacturing based in China, the company is highly exposed to emerging trade barriers such as U.S. tariffs.
However, with strong fundamentals and very healthy cash flow, sophisticated investors might be attracted to Mattel as a longer-term pick.
What to watch
Despite its recent price dip, analysts are revising their earnings estimates upwards on the back of solid sales growth, free cash flow and attractive price to cash-flow ratio.
It’s also worth noting that Mattel is sitting on a potential intellectual property goldmine.
After the success of the Barbie movie, Mattel is planning further forays into film franchising, with childhood favourites Barney, Thomas the Tank Engine, and He-Man all reported to be in production.
The Buckle (BKE)
What it does
Fashion, footwear and accessories. A third of The Buckle’s sales are from its own private label brands.
Why it matters
In a world where fast fashion and social commerce grab the headlines, The Buckle is quietly going about the traditional business of manufacturing clothes and selling them in malls. A lot of people still like to shop this way.
Steady growth can lead to steady dividends. The Buckle’s 4.02% annual dividend yield[3] , performing significantly higher than the consumer discretionary sector average of 1.89%, is one very good reason this stock might be worth your attention.
What to watch
The Buckle’s stock price has been up and down over the past 12 months with a high of US$54.08 and a low of US$37.62[3]. Savvy traders and investors might wish to keep an eye on the lows if they want to get in at a bargain price. And remember, you don’t need to buy the asset to benefit from price changes. Our guide to spread betting explains the fundamentals.
Haier (6690.HK)
What it does
Home appliances like fridges and air-conditioners, with an eye on AI-powered smart homes
Why it matters
On 29th April 2025 Haier announced impressive year-on-year NET profit and cash flow growth. According to a company release[4] , parent company NET profits increased by 15.1% while NET cash flow improved by the same amount.
This news followed an announcement earlier in April that executives and management were in the process of a significant share repurchase[5] , increasing employee ownership.
The markets like buybacks because they boost share value and point to healthy fundamentals.
What to watch
Haier has the hallmarks of a growing company in an exciting niche of the consumer goods sector. It is performing well domestically and growing its overseas presence in both developed and developing markets. Their focus on AI-powered smart living should be of interest to investors looking to capture future growth.
Ford (F)
What it does
It’s more than a car company. It’s a cultural icon.
Why it matters
In a climate of growing U.S. protectionism, an American firm once considered the bellwether of the American economy, employing 171,000 people, could be due for a critical reappraisal.
Ford stock has not performed well in the past decade. The S&P 500 has outperformed it quite considerably in that time period.
But can that go on forever and has Tesla skewed the market on valuations for car companies?
Tesla has historically behaved as a tech stock. With PR headwinds now affecting sales worldwide, it is beginning to behave more like an auto stock, potentially bringing a degree of sanity back to the electric vehicle and broader auto market.
By investing heavily in its carbon net neutrality programme and hands-free technology, Ford could be the company best positioned to see a return to a fair value.
What to watch
Historical weaknesses notwithstanding, Ford shares are currently cheap by any metric. Throughout the start of Q2 2025, stock was trading below $10.
And while it’s not likely to shoot up dramatically this quarter, it could be an attractive long term bet.
The bottom line
We’re seeing opportunities at two ends of a spectrum.
On the one hand, Coca-Cola’s ongoing reliability, Ford’s potential turnaround and The Buckle’s ongoing strong performance in brick-and-mortar shopping malls are reassuring in their familiarity.
While the potential of Haier to radically alter how our homes function and Mattel becoming a cinematic giant shows the diversity and dynamism of the consumer goods market.
This serves to underscore what we already know: the consumer goods sector isn’t just an escape from volatility. There are genuine opportunities for long medium to long term growth, future growth, potential bargains and price action in the short term.