COCO Overview

Consumer Staples Sector Performance: The consumer staples sector demonstrated renewed strength last week, with the State Street Consumer Staples Select Sector ETF gaining 2%.

ETF Weekly Range: The ETF finished at the top of its weekly range and closed nearly 4% above its intraweek low.

Investor Sentiment: Investors are gravitating towards safer, low-beta stocks due to anticipated market uncertainty, with companies increasingly using complex borrowing methods for funding.

Stock Screening Criteria: A screening process for low-volatility stocks includes criteria such as a beta between 0 and 0.6, positive price movement over the last month, a minimum trading price of $5, and a Zacks Rank of 1 (Strong Buy).

Highlighted Stocks: Notable low-beta stocks include J & J Snack Foods Corp., USA Compression Partners, Natural Gas Services Group, and The Vita Coco Company, each positioned to benefit from current market trends.

Investment Tools: The Research Wizard is recommended for investors to create and test their own stock strategies, with a free trial available for those interested in exploring investment opportunities.

General Mills Q2 Fiscal 2026 Results: General Mills reported adjusted earnings of $1.10 per share, exceeding estimates, but both earnings and net sales declined year over year, with net sales dropping 7% to $4.86 billion, impacted by divestitures and acquisitions.

Segment Performance: North America Retail revenues fell 13% due to yogurt divestitures, while International revenues increased 6%, driven by growth in several countries. North America Pet revenues rose 11%, but operating profit declined due to increased costs.

Future Outlook: The company aims to revive organic sales growth amid a challenging environment, projecting organic net sales to range from a 1% decline to a 1% increase, with adjusted operating profit and EPS expected to decline by 10-15%.

Stock Performance and Recommendations: General Mills shares have decreased by 4.5% over the past three months, while other companies like United Natural Foods, Village Farms, and Vita Coco are highlighted as strong buy recommendations with significant expected growth.

Vita Coco's Stock Performance: Vita Coco's stock has surged nearly 50% in 2025, achieving a 46% increase since its public debut in October 2021, and boasts a significantly lower price-to-earnings ratio compared to Celsius.

Impact of Tariff Relief: The company's growth was bolstered by the White House's announcement of tariff relief on coconut water beverages, reducing import costs from 23% to 6%, while its packaging in recyclable paper cartons shields it from aluminum tariffs affecting competitors.

Sustainability Initiatives: Vita Coco is committed to sustainability through its Seedlings for Sustainability program, aiming to plant 10 million coconut seedlings by 2030, enhancing efficiency for coconut farmers.

Investment Considerations: Despite its strong performance, Vita Coco was not included in the Motley Fool Stock Advisor's list of top stocks to buy, which highlights other companies with potentially higher returns.