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Stock Strategist

Should You Add These Household Brands to Your Portfolio?

Here's our take on Clorox, Colgate-Palmolive, and Procter & Gamble.

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Few other things have proved to be as pandemic-proof as the demand for personal and home cleaning products. The robust revenue and profit numbers of the consumer staples companies selling these products are a clear indication that no matter the level of uncertainty, consumers will continue to buy products considered essential. In fact, as evidenced by robust organic sales, personal and home hygiene products are particularly sought after as survival tools needed to limit the spread of the coronavirus.

Clorox, Colgate-Palmolive, and Procter & Gamble boast noncyclical, stable businesses that tend to do relatively well during economic upheavals and market downdrafts, meaning they can be expected to generate solid revenue during the pandemic and into the foreseeable future. They are leading players in Morningstar's consumer defensive coverage universe, as well as stable cash flow stories.

Vikram Barhat does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.