These 3 Consumer Staples Stocks May Outperform the S&P 500 in 2026

Lately, I've been paying close attention to how everyday consumer staples are quietly stealing the spotlight in 2026. While the S&P 500 is still being carried by a handful of tech giants, there are more grounded, cash flow‑rich companies that are showing steady strength in the Consumer Staples sector, too.

The three companies featured below are finding smart ways to grow, innovate, and stay relevant. For anyone looking for reliable upside without the wild swings, these stocks feel positioned to outperform the broader market this year.

1. Church & Dwight

Church & Dwight (NYSE: CHD) was founded in 1846, and it has spent 180 years turning baking soda into an empire. The Arm & Hammer brand appears in more grocery aisles than almost any other single brand in America, with products related to laundry, cat litter, toothpaste, deodorant, and household cleaning.

That ubiquity is not an accident. It is the product of a pragmatic innovation engine that extends existing brands into adjacent categories rather than chasing moonshots.

I've been really impressed by what Church & Dwight has been up to this year and last year, and the market seems to agree. The stock has surged 22% over the past two months, reflecting investor excitement around their innovation and growth strategy.

Their 2026 innovation pipeline is a glimpse into how this machine keeps running. Take TheraBreath, which the company acquired in 2021. It's moving beyond mouthwash into toothpaste, with three versions focused on fresh breath, whitening, and gum health. Hero Cosmetics, the acne-patch brand Gen Z loves, is rolling out invisible liquid patches and cleansers, opening up completely new ways for makeup-wearing consumers to use their products.

Even Trojan is getting in on the innovation, debuting GOAT (Greatest of All Trojan), a non-latex condom, their first major material breakthrough in over 20 years, and early reviews are strong. And on the household front, Arm & Hammer is launching a Baking Soda Fresh laundry detergent with 10x more baking soda, aimed squarely at value-conscious shoppers right when many are trading down.

The company expects these new launches to drive roughly half of its organic growth this year.

I'm a big fan of businesses that acquire strong, established brands rather than reinventing the wheel from scratch. It's smart, efficient growth in action. Church & Dwight is one of those tickers.

2. Lamb Weston

Lamb Weston (NYSE: LW) is one of the world's largest producers of frozen potato products, with McDonald's, Wendy's, and thousands of food service operators depending on its supply chain.

The stock has been under pressure. It cratered around 30% in mid-December 2025 into the new year, creating an entry point as the company executes a strategic transformation called "Focus to Win." The plan is straightforward: close underperforming facilities (including the Connell, Washington, plant); curtail excess production lines; and redirect capital into higher-return investments.

An American Falls, Idaho, expansion involving over $415 million in investment is boosting french fry production capacity by roughly 40%. A new facility in Argentina commenced production in late 2025, extending Lamb Weston's reach into Latin American markets. Capacity in the Netherlands was expanded in the first half of fiscal 2025.

The innovation angle is overlooked. Lamb Weston is developing "fridge-friendly fries" designed for at-home consumption, a category extension that would move beyond its traditional food-service dependency.

French fries are one of the most universally consumed food items on Earth, and Lamb Weston controls a disproportionate share of the global supply.

With the ticker down 30% over the last 3 months, I think it's a safe buy if you want to beat out the S&P 500.

3. Costco Wholesale

Costco Wholesale (NASDAQ: COST) stands out to me not just for its name but for why it could outperform in 2026. The shift into consumer staples has brought record inflows, and Costco sits at the sweet spot of defensive demand and real growth.

Kirkland Signature is the engine. The retailer's private-label collection of products offers members 15%–20% price savings compared to comparable national brands while expanding into premium categories such as organic foods and luxury skincare.

Over 30 new Kirkland products were launched in its most recent quarter, with more coming in 2026. Domestic sourcing in key categories like health, beauty, tires, and mattresses cuts costs 30%–40% and reduces tariff exposure.

I've written about how I think the magic of Costco has always been its membership model, and today, that flywheel is spinning faster than ever.

In the first quarter of fiscal 2026, membership fee income jumped 14% to $1.33 billion, fueled by a 5.2% increase in the paid membership base to 81.4 million.

Executive memberships, the company's most profitable tier, grew 9.1% to 39.7 million. Beyond its loyal members, Costco continues to compound its advantages through 28 new warehouse openings globally and 15% growth in e-commerce.

For investors seeking both capital preservation and steady growth, Costco delivers on both fronts.

Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.