2 ‘Strong Buy’ Consumer Staples Stocks That Beat the Market in April

2025 has proven to be a turbulent year for financial markets, with persistent uncertainty stemming from President Donald Trump’s escalating trade war casting a long shadow over the economy. April, in particular, delivered a fresh wave of volatility following the April 2 “Liberation Day” tariff bombshells. And while the recent cooling inflation data has offered brief moments of relief, the S&P 500 Index ($SPX) still remains stuck in the red for the year and has inched lower over the past month.

As market jitters linger, most sectors have joined the retreat, struggling to find stable ground amid this chaos. Yet, even in the face of widespread downturns, one defensive pocket of the market has managed to shine. The S&P 500 Consumer Staples Sector ($SRCS) has bucked the broader market trend, rising nearly 5.1% year-to-date. 

As volatility shakes confidence, it’s no surprise that investors are once again flocking to the reliability of everyday essentials. So, as we move further into the year, here are two “Strong Buy”-rated consumer staples names that remained resilient in April and could serve as a safe haven amid the current market struggles.

Stock #1: Walmart

Walmart (WMT) operates one of the world’s largest omnichannel retail networks, serving around 270 million customers each week across more than 10,750 stores and e-commerce platforms in 19 countries. The Arkansas-based company remains a major player in retail, logistics, and digital commerce while maintaining a strong presence in areas like sustainability and workforce development.

With a market cap of approximately $778.1 billion, shares of this retail giant have surged an impressive 9.6% in just the last month, easily outperforming the broader SPX’s marginal decline during the same stretch. On a YTD basis, the stock is up 7.8%, while the broader index has fallen 3.9%. 

As a Dividend King, with an incredible 52-year track record of consecutive dividend hikes, Walmart appears to be an attractive catch for income-seeking investors. On April 7, the company paid its shareholders a quarterly dividend of $0.235 per share. The retail giant currently offers an annualized dividend of $0.94 per share, translating to a yield of 0.97%. While the yield isn’t flashy, Walmart’s disciplined payout ratio of just 32% signals plenty of room for further increases.

The retail giant reported its fiscal fourth-quarter earnings results on Feb. 20, which topped Wall Street’s expectations on both top and bottom lines. Total revenue climbed 4.1% year-over-year to $180.6 billion, slightly above the anticipated $180.2 billion. A key driver of this growth was a robust 16% surge in global e-commerce sales, underscoring Walmart’s continued strength in leveraging its stores for pickups and deliveries. 

On the bottom-line, adjusted EPS climbed 10% to $0.66, sailing past analyst forecasts by roughly 1.5%. The company’s segment performance paints a mixed yet promising picture. Walmart U.S. led the charge with solid 5% sales growth, reaching $123.5 billion. Meanwhile, international sales dipped slightly to $32.1 billion. Sam’s Club, however, impressed with a 5.7% jump to $23.1 billion, showcasing resilience even as it absorbed the impact of wage investments.

Looking forward to fiscal 2026, management anticipates net sales to grow between 3% and 4%. At the same time, adjusted EPS is forecast to land between $2.50 and $2.60. Analysts tracking Walmart predict the company’s profit to rise 3.6% year over year to $2.60 per share in fiscal 2026 and grow another 11.5% to $2.90 per share in fiscal 2027. 

As the company gears up to lift the curtains on its fiscal 2026 Q1 earnings report before the market opens on May 15, Wall Street seems highly bullish on WMT stock, with a consensus “Strong Buy” rating overall. Of the 38 analysts offering recommendations, 32 firmly back it with a “Strong Buy,” five suggest “Moderate Buy,” and the remaining one gives it a “Hold.” 

The average analyst price target of $108.05 indicates 11.1% potential upside from the current price levels, while the Street-high price target of $120 suggests that WMT could rally as much as 23.4% from here.

Stock #2: Philip Morris International 

Connecticut-based Philip Morris International (PM) is reshaping its business by moving away from cigarettes and expanding its portfolio of smoke-free products, alternatives that, while not risk-free, are considered better options for smokers. The company’s smoke-free portfolio includes heat-not-burn devices, nicotine pouches, and e-vapor products.

Presently valued at a market cap of around $266.7 billion, this smoke-free giant has delivered a strong performance in April, outpacing the broader market with a 7.8% gain. Zooming out, the returns are even more striking, with the stock up a remarkable 42% so far this year. 

Although Philip Morris may not hold the prestigious title of a Dividend King like Walmart, it still boasts a respectable 16 years of consecutive dividend hikes. Last month, the company distributed a quarterly dividend of $1.35 per share. On an annualized basis, the company dishes out $5.40 per share, translating to an enticing 3.2% yield, making the stock an attractive option for investors seeking reliable income.  

On April 23, Philip Morris pulled back the curtains on its fiscal 2025 first-quarter earnings, which blew past Wall Street’s forecasts on both the top and bottom lines. Net revenues hit $9.3 billion, reflecting a 5.8% year-over-year increase and edging out analyst forecasts by 1.7%. Meanwhile, adjusted EPS climbed a solid 12.7% year-over-year to $1.69, beating analyst projections by 5%. 

While reflecting on the Q1 results, CEO Jacek Olczak highlighted the company’s stellar performance, driven by sustained volume growth, strong top-line results, and significant margin expansion. The CEO also noted the impressive 20% organic growth in net revenues and over 33% growth in gross profit from the company’s smoke-free business. 

Looking ahead to fiscal 2025, despite the ongoing global economic uncertainty, management anticipates adjusted EPS to land between $7.26 and $7.39, signaling a double-digit growth of around 12% to 14%. By comparison, analysts monitoring Philip Morris project the company’s profit to rise 13.7% annually to $7.47 per share in fiscal 2025 and improve another 11.7% to $8.34 per share in fiscal 2026.

Much like WMT, Wall Street remains largely optimistic on PM stock, with a consensus “Strong Buy” rating overall. Of the 12 analysts offering recommendations, eight give it a solid “Strong Buy," one suggests “Moderate Buy,” and the remaining three advocate a “Hold.” 

The average analyst price target of $179.73 indicates almost 4.9% potential upside from the current price levels. The Street-high price target of $190 suggests that PM could rally as much as 10.9% from here.