Three beverage stocks to tap for frothy markets

These ubiquitous companies have proved to be steady performers even at the time of wild market swings.

Vikram Barhat 12 September, 2018 | 5:00PM
Facebook Twitter LinkedIn

The persistent heat and humidity this summer are breaking weather records across Canada. Pretty much the same story has been playing out in the overheated equities markets as they relentlessly edge higher.

While they have pulled back in the past week, the S&P 500 and Nasdaq indices were virtually hitting new record highs every day over the summer and still show total returns of 9% and 17% for the year to date, respectively, as of Sept. 10. Thankfully, investors may only need to peek inside their refrigerators to find relief from these extreme conditions. Makers of fizzy drinks, both alcoholic and aerated varieties, could quench investor thirst in more ways than one.

Select beverage stocks in the consumer staples sector have proved to be steady performers even at the time of wild market swings. Leading constituents of the sector are known to offer a solid bulwark against rocky markets. They are sound allocation bets that provide both downside protection during sharp corrections and reasonable upside opportunities when markets are on the upswing.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free
Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Anheuser-Busch InBev SA/NV ADR56.45 USD0.95Rating
Molson Coors Beverage Co Shs -B- Non-Voting45.34 USD0.85Rating
PepsiCo Inc161.31 USD0.76Rating

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy