CHD, PG and KMB: The Safe Trio of Consumer Staple Stocks in a Frothy Market

The S&P 500 (SPX) has surged 20% over the past year, while the tech-heavy Nasdaq (NDX) has gained an even more impressive 31%. These outsized moves have left some investors wondering if the market has gotten ahead of itself. Recent bouts of volatility suggest that a pullback isn’t out of the question. While trying to time such corrections is a fool’s errand, it’s always wise to seek value—especially in sectors that have lagged the broader rally.

One such area is consumer staples. The Consumer Staples Select Sector SPDR Fund (XLP) has declined approximately 5% over the past year, despite the overall market’s surge. Consumer staples stocks tend to be the bedrock of many portfolios. Their businesses are stable, defensive, and relatively predictable—built on steady (if unspectacular) growth and consistent demand.

Many also offer reasonable valuations and reliable dividends. In this article, we’ll take a closer look at three leading names in the sector—Church & Dwight (CHD), Procter & Gamble (PG), and Kimberly Clark (KMB)—to see which offers the best opportunity at current market prices.

Church & Dwight (NYSE:CHD)

Best known as the maker of Arm & Hammer baking soda, Church & Dwight’s portfolio spans laundry detergents like OxiClean and Xtra, oral care products such as Spinbrush and Orajel, and numerous other household and personal care brands. Founded in 1847 and based in Ewing, New Jersey, the company embodies the consistency that defines the consumer staples sector.

However, CHD shares have fallen approximately 16.5% over the past year, and despite this decline, the stock remains relatively expensive. It trades at roughly 25x 2025 earnings estimates, a slight premium to the S&P 500’s multiple of 23x. That’s not unreasonable, but it’s hardly a bargain for a low-growth, defensive stock.

On the income side, Church & Dwight has raised its dividend for 20 consecutive years, but the current 1.4% yield only modestly exceeds the S&P 500’s average of 1.1%. All told, Church & Dwight is a solid, dependable company—but its valuation and yield leave limited room for excitement compared to its peers.

Is CHD Stock a Buy, Hold, or Sell?

On Wall Street, CHD holds a Moderate Buy consensus, with seven Buys, five Holds, and three Sells in the past three months. The average price target of $98.86 implies ~14% upside from current levels.

See more CHD analyst ratings

Procter & Gamble (NYSE:PG)

Next is consumer staples titan Procter & Gamble, a $343 billion behemoth based in Cincinnati and founded in 1837. P&G operates across five divisions—Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care—and owns a long list of household brands, including Tide, Crest, Old Spice, Bounty, Swiffer, and Pampers.

Shares have declined 9.3% over the past year, but PG now trades at a reasonable 21x June 2026 earnings estimates—cheaper than both the S&P 500 and Church & Dwight, though not exactly a deep value play.

P&G’s dividend is where it shines. The stock yields 2.9%, more than double the market average, and it boasts an extraordinary record of consistency: the company has paid—and raised—its dividend for 69 straight years, making it a Dividend King and a favorite among income investors.

With a trusted brand portfolio, solid financials, and an unmatched dividend history, Procter & Gamble remains a dependable long-term holding. Its valuation is fair, though investors seeking greater upside may find better value elsewhere in the sector.

Is PG Stock a Buy?

PG carries a Moderate Buy consensus, with 11 Buys, seven Holds, and no Sells in the past three months. The average price target of $169.44 suggests 16% upside potential over the next 12 months.

See more PG analyst ratings

Kimberly-Clark (NASDAQ:KMB)

Finally, we come to Kimberly-Clark, another stalwart of the consumer staples sector, with a history spanning over 150 years.

KMB shares have struggled mightily, falling 23.5% over the past 12 months—a far steeper decline than its peers. The stock’s most recent drop came after news that Kimberly-Clark will acquire Kenvue (KVUE)—the maker of Tylenol, Band-Aid, Neutrogena, and other brands—for about $48.7 billion.

The market reacted negatively to the deal, partly due to concerns surrounding Tylenol litigation and the typical near-term sell-off that often accompanies large acquisitions. Still, the long-term potential is intriguing. Combining Kimberly-Clark’s powerhouse brands—like Huggies, Kleenex, Scott, and Cottonelle—with Kenvue’s extensive health and personal care lineup could create a true consumer staples juggernaut with greater scale and diversification.

Valuation-wise, Kimberly-Clark is the clear standout in this group. The stock trades at 13.5x 2025 earnings estimates, a deep discount to both its peers and the broader market. Its dividend story is equally compelling: KMB yields a hefty 5% and has increased its payout for 52 consecutive years, cementing its status as a Dividend King.

Given its low valuation, strong yield, and the transformative potential of the Kenvue acquisition, Kimberly-Clark appears to be a contrarian opportunity in an otherwise expensive market.

Is KMB Stock a Buy?

KMB has a Hold consensus rating, based on three Buys, ten Holds, and one Sell in the past three months. The average price target of $120.15 implies 15% upside from current levels.

A Clear Winner

All three companies offer the hallmarks of consumer staples investing: stability, reliable dividends, and resilience through economic cycles. But in terms of opportunity, Kimberly-Clark stands out.

Church & Dwight is a high-quality but expensive option for its offerings, and Procter & Gamble—while rock-solid—trades near its fair value. Kimberly-Clark, by contrast, combines a low valuation, market-leading yield, and catalyst potential from its Kenvue acquisition.

In short, while P&G remains the gold standard for dividend dependability, Kimberly-Clark offers the most compelling mix of value, income, and upside potential in the consumer staples space today.