What better way to celebrate the giving season than to give yourself the gift of capital gains?
Below are three consumer goods stocks offering investors the gift of potential outsize gains in 2023.
While most non-energy stocks were down in 2022, Walmart’s stock managed to buck the trend and have a positive year. The main reason behind Walmart’s staying power is its budget offerings. While many households (and companies) are battening down the hatches and cutting their nonessential spending in anticipation of a recession, they still need the basics like food and home goods, which form the core of Walmart’s offerings.
Even if the worst comes to pass and the U.S. enters a deep recession, Walmart has a good chance of weathering the storm with minimal damage. Investors would be wise to consider Walmart as a safe haven for their dollars in these uncertain times.
Shares of Walmart closed today’s trading session at $143.48 per share, down -1.17% on the day. YTD, WMT stock is down -0.81%.
Perhaps the greatest opportunity for outsized gains in the market right now is the reopening of Asia, China in particular, after the COVID-19 pandemic. Governments are easing restrictions, and life is beginning to return to normal, which means an increase in purchasing of high-quality home goods and health & beauty products, which were gaining in popularity among China’s exploding middle class before COVID-19 entered the picture.
Yoshitsu Co, Ltd., a Tokyo-based consumer goods company, is making significant strides in becoming a leader in China. The company operates several storefronts in major Japanese and Chinese cities, including Tokyo and China (Hong Kong), respectively, while also selling their wares across several sites in both Japan and China.
The company’s biggest push yet is the development of its largest distribution center yet, which is located in China (Hong Kong). This distribution center will resupply the company’s stores across not only China but the rest of its operations in Southeast Asia. This will ensure their best-selling brands remain in stock and available for customers.
Shares of Yoshitsu last traded at $1.16, down -5.65% on the day.
The undisputed king of soft drinks is another company that has outperformed the wider market in 2022. The company’s products, led by their flagship brand, have repeatedly been shown to have staying power throughout even the worst economic conditions. Even during a tough 2022, when many companies saw their revenues decline or remain stagnant, Coca-Cola grew revenues by 10%.
Another major feather in the company’s hat is its status of a Dividend King, a title awarded to companies who have raised their dividend every year for at least 50 consecutive years; the company has actually increased the dividend for 60 straight years. Coca-Cola’s current yield of 2.74% should become even more attractive if the economy continues to worsen.
Shares of Coca-Cola closed the day at $63.34 per share, down -0.72% on the day. YTD, KO stock is up +6.81%.
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Yoshitsu Co. Ltd. is a paid client of Wealthy VC.
Wealthy VC’s parent company has been compensated $75,000 per month for four months for investor relations and market awareness services by Yoshitsu Co. Ltd. (NASDAQ: TKLF).
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