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Consumer Defensive — Earnings Quality Screening

112 Consumer Defensive stocks screened with 18 forensic accounting checks

Grade Distribution

A: 6
B: 8
C: 13
F: 81
A6 — Strong — minimal red flags
B8 — Good — generally healthy
C13 — Fair — some red flags
D4 — Weak — significant concerns
F81 — Fail — major red flags

Earnings Quality Characteristics in Consumer Defensive

Consumer Defensive companies — household products, packaged foods, beverages, tobacco, and discount retailers — are traditionally considered safe havens, but their earnings quality deserves careful scrutiny. These businesses rely on brand pricing power and stable demand, which can mask gradual deterioration in underlying economics. Goodwill from brand acquisitions, shrinkflation tactics that maintain revenue while reducing product volume, and promotional spending reclassification between SG&A and cost of goods sold are all common earnings quality concerns. Our screening evaluates whether reported cash flows genuinely support the stable earnings these companies are known for.

Common Red Flags in Consumer Defensive

  • ⚠Gross margin expansion driven by shrinkflation rather than genuine pricing power or cost efficiency
  • ⚠Goodwill from brand portfolio acquisitions at premium multiples with limited synergy evidence
  • ⚠Operating cash flow diverging from net income due to aggressive working capital management

All 112 Consumer Defensive Stocks

AStrong — minimal red flags(6 stocks)

A
CVGWCalavo Growers, Inc.
A
FIZZNational Beverage Corp.
A
LRNStride, Inc.
A
MZTIThe Marzetti Company
A
NATRNature's Sunshine Products, Inc
A
TRTootsie Roll Industries, Inc.

BGood — generally healthy(8 stocks)

B
CALMCal-Maine Foods, Inc.
B
GHCGraham Holdings Company
B
JJSFJ & J Snack Foods Corp.
B
MAMAMama's Creations, Inc.
B
PRDOPerdoceo Education Corporation
B
PSMTPriceSmart, Inc.
B
PXEDPhoenix Education Partners, Inc
B
UDMYUdemy, Inc.

CFair — some red flags(13 stocks)

C
APEIAmerican Public Education, Inc.
C
COSTCostco Wholesale Corporation
C
FCFranklin Covey Company
C
IMKTAIngles Markets, Incorporated
C
IPARInterparfums, Inc.
C
LFVNLifevantage Corporation
C
LWAYLifeway Foods, Inc.
C
MNSTMonster Beverage Corporation
C
NUSNu Skin Enterprises, Inc.
C
STRAStrategic Education, Inc.
C
USNAUSANA Health Sciences, Inc.
C
UTIUniversal Technical Institute I
C
VITLVital Farms, Inc.

DWeak — significant concerns(4 stocks)

D
CENTCentral Garden & Pet Company
D
CENTACentral Garden & Pet Company
D
ISPRIspire Technology Inc.
D
WMKWeis Markets, Inc.

FFail — major red flags(81 stocks)

F
ACUAcme
F
ADMArcher-Daniels-Midland Company
F
AFRIForafric Global PLC
F
ALCOAlico, Inc.
F
ANDEThe Andersons, Inc.
F
AVOMission Produce, Inc.
F
BGBunge Limited
F
BGSB&G Foods, Inc.
F
BRCCBRC Inc.
F
BYNDBeyond Meat, Inc.
F
CAGConAgra Brands, Inc.
F
CCEPCoca-Cola Europacific Partners
F
CHDChurch & Dwight Company, Inc.
F
CHEFThe Chefs' Warehouse, Inc.
F
CLColgate-Palmolive Company
F
CLXClorox Company (The)
F
COCOThe Vita Coco Company, Inc.
F
COURCoursera, Inc.
F
CPBThe Campbell's Company
F
CVSACovista Inc.
F
DGDollar General Corporation
F
DLTRDollar Tree, Inc.
F
DNUTKrispy Kreme, Inc.
F
DOLEDole plc
F
ELEstee Lauder Companies, Inc. (T
F
EPCEdgewell Personal Care Company
F
EWCZEuropean Wax Center, Inc.
F
FDPFresh Del Monte Produce, Inc.
F
FTLFFitLife Brands, Inc.
F
GISGeneral Mills, Inc.
F
GOGrocery Outlet Holding Corp.
F
HAINThe Hain Celestial Group, Inc.
F
HELEHelen of Troy Limited
F
HFFGHF Foods Group Inc.
F
HLFHerbalife Ltd.
F
HNSTThe Honest Company, Inc.
F
HRLHormel Foods Corporation
F
HSYThe Hershey Company
F
JBSSJohn B. Sanfilippo & Son, Inc.
F
KDPKeurig Dr Pepper Inc.
F
KHCThe Kraft Heinz Company
F
KLCKinderCare Learning Companies,
F
KMBKimberly-Clark Corporation
F
KOCoca-Cola Company (The)
F
KRKroger Company (The)
F
KVUEKenvue Inc.
F
LAURLaureate Education, Inc.
F
LINCLincoln Educational Services Co
F
LMNRLimoneira Co
F
MAGNMagnera Corporation
F
MDLZMondelez International, Inc.
F
MGPIMGP Ingredients, Inc.
F
MHMcGraw Hill, Inc.
F
MKCMcCormick & Company, Incorporat
F
MOAltria Group, Inc.
F
NGVCNatural Grocers by Vitamin Cott
F
PEPPepsico, Inc.
F
PGProcter & Gamble Company (The)
F
PMPhilip Morris International Inc
F
SENEASeneca Foods Corp.
F
SJMThe J.M. Smucker Company
F
SKILSkillsoft Corp.
F
SKINThe Beauty Health Company
F
SLSNSolesence, Inc.
F
SMPLThe Simply Good Foods Company
F
SPBSpectrum Brands Holdings, Inc.
F
STKLSunOpta, Inc.
F
STZConstellation Brands, Inc.
F
SYYSysco Corporation
F
TAPMolson Coors Beverage Company
F
TGTTarget Corporation
F
TPBTurning Point Brands, Inc.
F
TSNTyson Foods, Inc.
F
UNFIUnited Natural Foods, Inc.
F
UTZUtz Brands Inc
F
UVVUniversal Corporation
F
VLGEAVillage Super Market, Inc.
F
WALDWaldencast plc
F
WESTWestrock Coffee Company
F
WMTWalmart Inc.
F
ZVIAZevia PBC

Understand Our Methodology

Every stock undergoes 18 systematic checks based on forensic accounting principles, including Beneish M-Score and Altman Z-Score quantitative models.

View Full Methodology →

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CCOSTCostco Wholesale CorporationCMNSTMonster Beverage Corporation

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