Seizing Opportunities in Rallying Consumer Staples Stocks

The typically sleepy consumer-staples stock sector has been having a moment lately. The S&P 500’s consumer staples sector has risen 6% since August and has increased 16% year-to-date. $Walmart (WMT.US)$, $Costco (COST.US)$, $Philip Morris International (PM.US)$ and $Coca-Cola (KO.US)$ all reached all-time highs during Tuesday's trading session.

Meanwhile, retailers’ strong earnings send a positive signal that could help lift the broader market, as investors saw when $Walmart (WMT.US)$ beat estimates and raised its outlook, citing stable consumer health.

In addition, $Target (TGT.US)$ posted a 2% rise in comparable sales for its second quarter, marking the first increase in over a year. $TJX Companies (TJX.US)$, owner of discount stores Marshalls and TJ Maxx, also exceeded expectations with a 4% rise in comparable sales.

$Walmart (WMT.US)$ has risen more than 46% year-to-date, $Costco (COST.US)$ and $Coca-Cola (KO.US)$ have increased by 38.3% and 23.2% respectively so far this year. Other retail giants such as $Unilever (UL.US)$ and $Colgate-Palmolive (CL.US)$ have risen more than 35%, while $Procter & Gamble (PG.US)$ has increased by 17.68%.