By Doug Busch
In an uncertain market climate, marked by shifting interest rates, uneven growth, and lingering geopolitical risk, investors often rediscover the quiet appeal of consumer staples.
These companies sell everyday essentials, from food and beverages to household goods, and their resilience tends to show when confidence fades elsewhere. This group relies on habits that don't change much, in good times or bad. That consistency can make the sector easy to overlook during rallies, but it becomes increasingly important when volatility returns.
The State Street Consumer Staples Select SPDR is up a respectable 6% year to date, outperforming the S&P 500, which is down 4%. The ratio chart shows how XLP has been outperforming the overall market since November. The ETF sprinted an uncharacteristic 18% during a vibrant six-week winning streak that started in early January. The rally was stopped cold at the very round $90 number:
The run started, not surprisingly, with a bullish engulfing candle on Jan. 8 and finished with a bearish engulfing candle on Feb. 17. Bulls previously would have been confident that a bottom was possibly in place after back-to-back doji candles on Nov. 4 and Nov. 5. The ETF is now supported by its upward sloping 200-day simple moving average and a potential double-bottom base is setting up.
Against this backdrop, two international staple stocks are emerging as timely buys:
Anheuser-Busch InBev ADR has gained 11% this year even as it trades 13% off the 52-week high it recorded less than two months ago. The stock was happy to put March in the rearview mirror as it rose just six sessions that month. Two weeks in March registered large weekly losses of 9% and 7%. I wrote about this name in February, anticipating a pullback.
The stock's daily chart shows how the break below a bull flag initiated selling pressure:
The 3% gap down on March 3 completed a bearish island reversal, after a gap up of 4% on Feb. 12. A couple of doji candles appeared between the reversal on Feb. 20 and March 2. New doji candles on March 12 and March 31 now suggest a bottom is in place. A bullish MACD crossover adds to the allure.
One can enter here and add to above a double bottom pivot of $73.69. Look for the stock to travel toward $89 in the second half of the year, which would represent a 25% gain from current prices. Remain bullish above $68.50. The stock was trading around $71 Monday.
Fomento Economico Mexicano S.A.B. de C.V, a consumer play in bottling and retail, is up 14% year to date, and pays a dividend yield close to 7%. FEMEX has produced consecutive weekly gains of 6% and 7% with both weeks closing right at highs.
The stock's daily chart shows a series of higher lows since August, beginning with a move below the very oversold 30 RSI level. A couple of doji candles printed on Aug. 18 and Aug. 19.
More recently a bullish morning star completed on March 24 with a bounce off the 200-day simple moving average and very round $100 number. The stock has now advanced in eight of the last nine sessions. Last week, it reclaimed the 50-day simple moving average and the 21-day exponential moving average, breaking above a double-bottom pivot of $110.52. One can enter here and look for a move toward $125 by mid 2026, a 9% gain from current prices. Remain bullish above $108. FEMEX was trading around $115 Monday.
The sector may lack flash, but after the pullback, it doesn't lack opportunity.
Doug Busch is the senior technical analyst at Barron's Investor Circle . His technical view is added to stock picks, including those published exclusively for Investor Circle readers. A glossary of technical terms is updated regularly with new entries.
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
April 06, 2026 10:55 ET (14:55 GMT)
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