7 Consumer Stocks to Buy and Hold for Years

Despite recent promising signs, macro concerns like inflation, interest rates and a possible recession will likely continue to weigh on the stock market in the near-term. A sustained recovery for stocks, including consumer stocks to buy and hold, may still take some time to take shape.

However, that’s not a reason to sit on the sidelines. Buying now, when macro uncertainties run high, could prove to be a profitable move. It remains unclear whether the worst has already played out, or if more volatility lies ahead in the coming year, even high-quality stocks continue to trade at depressed prices.

This has created a great opportunity to enter long-term positions at more-than-favorable prices, particularly among consumer stocks to buy and hold.

Once today’s overarching issues begin to subside, a broad market recovery will begin. Yet while that means low-quality and high-quality stocks alike will move higher, certain stocks will make recoveries outsized compared to that of the overall market.

That’s the case here with these seven consumer stocks to buy and hold. With strong fundamentals and bright prospects, each one could really take off when the bull market returns.

Arhaus (ARHS)

Arhaus (NASDAQ:ARHS) is an omnichannel retainer of premium home furnishings. Like other companies in this industry, the company’s sales really took off during the pandemic-era housing boom, but have slowed down considerably during this year’s downturn for the housing market.

As a result, ARHS stock has performed poorly. Although shares have started to recover (thanks to better-than-expected quarterly numbers), the stock remains down around 21% year-to-date. However, not only could this stock continue to inch back toward its past high ($14.95 per share).

ARHS (which currently earns a B in Portfolio Grader) could become a long-term winner, delivering above-average returns over a multi-year timeframe.

At present trading for only 12.3 times earnings, shares are likely to receive a market re-rating, once high growth returns. Earnings growth, plus an expansion of its multiple, may ultimately send Arhaus stock to prices many times over current levels.

China Automotive Systems (CAAS)

As its name suggests, China Automotive Systems (NASDAQ:CAAS) manufactures auto parts in China, primarily steering systems. Once under the radar, shares have caught the eye of many investors recently.

As InvestorPlace’s William White reported last month, CAAS stock made a big move in mid-November, following the release of the company’s latest quarterly earnings report. For the quarter ending Sept. 30, China Automotive Systems reported strong year-over-year revenue growth (26.8%), and a massive improvement in its bottom line.

Earnings per share (or EPS) came in at 24 cents, versus negative EPS of 1 cent in the prior year’s quarter. CAAS stock has kept climbing, largely due to news of an expanded partnership with Chinese electric vehicle (or EV) maker BYD Company Limited (OTCMKTS:BYDDF).

Showing little sign of slowing down, consider adding this A-rated, low-priced (trading for 11.6 times earnings) growth play to your portfolio.

Costco Wholesale (COST)

Costco Wholesale (NASDAQ:COST) is one of the consumer stocks to buy and hold that requires little introduction. Shares in this retail discount club powerhouse have long been a winner for investors. Over the past decade, this stock is up an impressive 453.5%.

Admittedly, COST stock has recently delivered less satisfactory returns. The current economic slowdown has applied some pressure, with COST down around 12.8% in 2022. That said, this latest slump has perhaps opened up an opportunity for investors looking to enter or add to a position.

As I’ve argued many times in past coverage, this company is much more inflation and recession-resistant than other discount retailers. Also expected to deliversteady earnings growth over the next few years, there’s more than enough in play for B-rated COST stock to maintain its premium valuation (37.6 times earnings), and continue to appreciate in price over time.

Manchester United (MANU)

In the world of association football (soccer), all eyes may be on the World Cup, yet there’s also been a lot of excitement surrounding shares in Manchester United (NYSE:MANU). One of the most valuable teams in all of sports, “Man U” has recently come “into play” in another game (the takeover game).

That is, MANU stock has spiked in price, upon rumors that the team is up for sale. Even if these takeover rumors fail to lead to a deal, you may want to consider buying shares in this sports franchise.

English Premier League teams have for many years experienced steady growth in underlying value. With a scarce number of teams, and a global pool of deep-pocketed buyers willing to pay up for the prestige of owning one, chances are this trend will continue, whether or not this team is soon sold.

Altria Group (MO)

Altria Group (NYSE:MO), isn’t a stock for anyone. Yet if have no qualms about investing in “sin stocks,” consider shares a strong opportunity at today’s prices.

Mostly, because you can buy MO stock today at an extremely-low valuation for a consumer stock. MO trades for less than ten times forward earnings. Shares also sport a very high forward dividend yield of 7.89%, and this company has a 52-year track record of dividend growth.

Yes, forecasts call for minimal earnings growth. Also, Altria could be losing out to its former subsidiary in the faster-growing “smoke free” segment of the tobacco industry (more below).

Nevertheless, with its low valuation and high yield making up for this risk, MO (rated B in Portfolio Grader) is a buy.

Philip Morris International (PM)

Formerly owned by Altria Group, Philip Morris International (NYSE:PM) makes and markets cigarette brands like Marlboro outside the United States. More recently, however, the company’s non-cigarette endeavors in its former corporate parent’s home turf have been of most interest to investors.

PM’s recent purchase of Swedish Match (OTCMKTS:SWMAY), will make PM a major name in the U.S. smokeless tobacco and non-tobacco nicotine products markets. The company also plans to re-launch its IQOS heated tobacco product in the U.S., after buying out Altria’s interest.

With both these moves, PM may be better adapted to changing trends in tobacco/nicotine use. Still, while more of a growth play than MO, don’t assume that means this B-rated tobacco stock is lacking in the value and yield department. Shares trade for at a reasonable 18.5 times earnings and pay out an annual dividend of 4.87%.

Walmart (WMT)

Like with Costco, fears about the economic slowdown have had a negative impact on the performance of Walmart (NYSE:WMT) stock. However, shares in the discount retailing giant have held up fairly well this year.

Bouncing back in recent months, WMT stock is again in the green for 2022, up around 6%. Even stronger performance could lie ahead. There has been some web traffic data that may suggest this retailer bested both omnichannel and online-only rivals on Black Friday. Walmart’s quarterly results could continue to come in ahead of expectations, even if the overall economic environment remains challenging, enabling the stock to keep climbing.

On a longer timeframe, shares will likely continue to appreciate in line with steady earnings growth. In addition, Walmart’s 1.46% dividend will also contribute to overall total returns. Rated B in Portfolio Grader, this is another high-quality consumer to consider buying now.

On the date of publication, Louis Navellier has a position in COST.

On the date of publication, the InvestorPlace Research Staff member primarily responsible for this article held MO.

Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.

More from InvestorPlace

• Avoid the Urge to Go Contrarian on SOFI Stock
• Artificial Intelligence Just Reached Its Very Own “iPhone Moment”
• A Game of Chicken Over Oil