With the Federal Reserve keeping rates on hold, inflation still elevated, and borrowing costs staying high, the spotlight is back on companies that sell the everyday items households keep buying in good times and bad. This article looks at how that mix of sticky prices, expensive credit, and geopolitical uncertainty around energy could affect large US consumer staples stocks, and why some investors keep returning to this part of the market for potential resilience. Ahead, you will see 3 stocks from the screener that appear positively exposed to these macro trends.

Lamb Weston Holdings (LW)

Overview: Lamb Weston Holdings is a global producer of frozen potato products, supplying fries, appetizers, and ingredients to quick service restaurants, full-service chains, retailers, and foodservice distributors under brands such as Lamb Weston, Grown in Idaho, and Alexia, as well as private label offerings.

Operations: Lamb Weston generates about US$4.3b in revenue from North America and US$2.2b from International markets, highlighting a business split between its home region and overseas customers.

Market Cap: US$6.1b

Investors looking at Lamb Weston stock are weighing a leading supplier to global quick service restaurants against a tougher backdrop of inflation, softer casual dining traffic, and high debt. The company is working on a US$250m cost savings program, closing less efficient plants in places like the Netherlands and investing in production and automation, while an activist investor is pushing for sharper cost discipline and clearer targets. At the same time, the shares appear significantly undervalued on a DCF basis, with a 3.37% dividend yield and ongoing buybacks. Earnings recently declined, and there is litigation and long term demand uncertainty to factor in, which makes the overall picture more complex than a simple value label suggests.

Cost cuts, plant closures and automation could be masking a deeper story at Lamb Weston Holdings, where a 3.37% yield, buybacks and activist pressure meet litigation and demand questions. Read the 3 key rewards and 2 important warning signs

Colgate-Palmolive (CL)

Overview: Colgate-Palmolive is a global consumer products company that sells everyday oral care, personal and home care, and pet nutrition brands such as Colgate toothpaste, Palmolive soaps, Fabuloso cleaners, and Hill’s pet foods to retailers, professionals, and eCommerce channels worldwide.

Operations: Colgate-Palmolive generates US$4.9b from Oral, Personal and Home Care in Latin America, US$4.0b in North America, US$2.9b in Asia Pacific, and US$4.7b from Pet Nutrition, with an additional US$4.3b segment adjustment.

Market Cap: US$72.5b

Colgate-Palmolive gives investors exposure to categories that households tend to prioritize even when budgets are under pressure, which can matter when the Federal Reserve is holding rates high and consumers are cautious. The company combines a long track record in oral care and household products with Hill’s pet nutrition. Management is investing in AI, digital tools, and productivity to support margins while still funding brand building. At the same time, high leverage, recent earnings pressured by large one-off charges, and a P/E well above many household product peers mean the stock is not a simple value story. Combined with a long-running dividend and emerging market growth ambitions, Colgate-Palmolive becomes a more nuanced staple than its familiar brands might suggest.

Colgate-Palmolive is investing heavily in AI, digital tools, and pet nutrition growth, yet its P/E remains well above many household peers. Before assuming that this premium is fully justified, read the analyst forecasts for Colgate-Palmolive

Costco Wholesale (COST)

Overview: Costco Wholesale runs membership-only warehouse clubs that sell bulk groceries, household essentials, gasoline, and a wide range of general merchandise to members across North America, Europe, and Asia. The warehouses are supported by e-commerce and ancillary services such as pharmacies and optical centers.

Operations: Costco generates about US$293.6b in revenue from its membership warehouses, with around US$212.2b from the United States, US$39.7b from Canada, and US$41.8b from other international markets.

Market Cap: US$428.3b

Costco Wholesale stands out in a world of sticky inflation and high borrowing costs because its membership model, recurring fee income, and focus on low prices attract budget conscious shoppers while still delivering 3% net margins and high quality earnings. Earnings growth of about 12.7% over the past year, strong digital sales momentum, and record gas volumes show how the company is finding extra levers in e-commerce, fuel, and higher tier memberships. The trade off for investors is a rich P/E of 47.7x and a share price that screens as expensive against cash flow estimates, which leaves less room for disappointment if growth or membership trends soften.

Costco’s accelerating membership fees, fuel volumes, and digital sales could be masking an even bigger story behind that 47.7x P/E. See how the full Costco Wholesale picture stacks up in the analysis report for Costco Wholesale

The three stocks covered here are only a starting sample, and the full US Large-Cap Consumer Staples screen surfaces 26 more companies that pair scale with everyday products and offer different narratives around pricing power, balance sheet strength, and cash generation. If you want to identify and analyze the specific catalysts that matter to you, from dividend profiles to earnings quality and financial health, run the US Large-Cap Consumer Staples screener.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.