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Consumer staples are considered safe havens in turbulent markets due to their inelastic demand profiles. Surprisingly, the sector hasn’t played its shielding role over the past six months as it tumbled 13.7%. This drop was worse than the S&P 500’s 5.5% loss.

Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. With that said, here is one resilient consumer stock we’ve added to our cart and two best left ignored.

Two Consumer Staples Stocks to Sell:

J&J Snack Foods (JJSF)

Market Cap: $2.26 billion

Best known for its SuperPretzel soft pretzels and ICEE frozen drinks, J&J Snack Foods (NASDAQ:JJSF) produces a range of snacks and beverages and distributes them primarily to supermarket and food service customers.

Why Are We Cautious About JJSF?

1. Modest revenue base of $1.59 billion gives it less fixed cost leverage and fewer distribution channels than larger companies

2. Estimated sales growth of 2.8% for the next 12 months implies demand will slow from its three-year trend

3. ROIC of 6.6% reflects management’s challenges in identifying attractive investment opportunities

At $116.75 per share, J&J Snack Foods trades at 22.8x forward P/E. To fully understand why you should be careful with JJSF, check out our full research report (it’s free).

Post (POST)

Market Cap: $6.17 billion

Founded in 1895, Post (NYSE:POST) is a packaged food company known for its namesake breakfast cereal and healthier-for-you snacks.

Why Does POST Give Us Pause?

1. Shrinking unit sales over the past two years show it’s struggled to move its products and had to rely on price increases

2. Demand will likely fall over the next 12 months as Wall Street expects flat revenue

3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

Post is trading at $113.97 per share, or 15.6x forward P/E. Check out our free in-depth research report to learn more about why POST doesn’t pass our bar.

One Consumer Staples Stock to Buy:

Philip Morris (PM)

Market Cap: $264.1 billion

Founded in 1847, Philip Morris International (NYSE:PM) manufactures and sells a wide range of tobacco and nicotine-containing products, including cigarettes, heated tobacco products, and oral nicotine pouches.

Why Do We Love PM?

1. Products are seeing elevated demand as its unit sales averaged 3% growth over the past two years

2. Differentiated product offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 64.8%

3. PM is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy