Just when the COVID-19 crisis began to subside globally, markets were hit by another major issue – inflation – caused by supply-chain issues, strong consumer demand, and a shortage of labor. Further, the Ukraine-Russia war added fuel to the problem, taking prices, especially of gas and essentials, to another level.
A report published by the Bureau of Labor Statistics last week showed that inflation in the U.S. hit 8.5%, the highest in 41 years. Federal Reserve Chair Jerome Powell seeks to tame the issue with six interest rates hikes in 2022.
However, it remains uncertain how successful the hawkish central bank will be at curbing higher prices, as a fresh surge of COVID-19 cases in China and persisting supply chain issues may add pressure.
Are you wondering where to park your precious earnings amid such tumultuous times? We are presenting to you two stocks that may help your portfolio generate sweeter returns.
Chocolates, also known as stress busters, are many people’s favorite. Though the market is not fully immune to inflation, as milk and sugar prices continue to rise, chocolate stocks could see tailwinds from the Easter weekend that just passed and an ample supply of cocoa in the market.
Here are two top stocks in the chocolate business worth considering.
The Hershey Co. (NYSE: HSY)
One of the most renowned chocolate manufacturers, Hershey offers confectionery products, such as cookies, cakes, milkshakes, and other drinks under the brand names Hershey’s, Reese’s, and Kisses.
The company currently has a beta of 0.40. Beta helps measure how volatile a stock is in comparison to the market. Thus a beta closer to 0 is more desirable.
Further, the stock adds more sweetness by providing a steady dividend stream. HSY has a payout ratio of 48.8% and has been consistently raising dividends once each year since 2009.
Wall Street has a Moderate Buy consensus rating on the stock based on eight Buys and seven Holds. The average Hershey Company price forecast of $212.40 implies 6% downside potential from current levels.
Retail investors on TipRanks are Very Positive about HSY. In the past month, 15.6% of portfolios have raised their holdings of the stock.
Mondelez International, Inc. (NASDAQ: MDLZ)
Mondelez manufactures food products like biscuits and chocolates under some of the most famous names, such as Oreo, Milka, and Cadbury.
The company has a beta of 0.71 at present. Furthermore, MDLZ’s dividend has been rising since 2012. Also, it has a payout ratio of 48.4%.
Based on 14 unanimous Buys, Mondelez has a Strong Buy consensus rating. The average Mondelez price target of $72.93 implies 13.6% upside potential from current levels.
The Crowd Wisdom tool on TipRanks indicates that investors are Very Positive about Mondelez. About 9.1% of portfolios increased their holdings of the stock last month.
Conclusion
Strong fundamentals, steady income stream in the form of dividends, and popularity among retail investors make these stocks attractive investment options.
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