What stocks are working in 2022? Anheuser-Busch, Altria, Hershey and Coca-Cola are cruising right along
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The Nasdaq and S&P 500 Index are coming off their worst weekly loss since March of 2020 as investors have started off 2022 with a big shift out of high-PE stocks into a value names. "All risk premium assetsâcrypto, high leverage, growth namesâare being impacted, and what's working right now is the opposite of that, quality stocks," notes First American Trust CIO said Jerry Braakman on the sentiment shift. Some analysts think it is not quite time for investors buy the tech buy dip, which could keep consumer staples in focus.

While sharp losses have stung semiconductor stocks, electric vehicle names and crypto-related bets to start 2022, defensive areas of the consumer sector are seeing solid gains even with the major indexes in negative territory.

Beverages: Beer and soda stocks are being seen as safe havens with Anheuser-Busch (NYSE:BUD) leading the way with a 7.56% gain to start the year. Molson Coors (NYSE:TAP) is 4.90% higher, while Coca-Cola (NYSE:KO) is up 2.09% and PepsiCo (NASDAQ:PEP) is 0.35% higher.

Packaged foods: A sector known for comparatively lush dividend payouts is seeing interest as value plays. J.M. Smucker (NYSE:SJM) is 5.45% higher in 2022, Campbell Soup (NYSE:CPB) is up 4.23%, Hershey (NYSE:HSY) is 3.56% higher and Kellogg (NYSE:K) is showing a 3.40% gain.

Tobacco: One of the classic sectors for defensive positioning by investors is seeing a return to form with British American Tobacco (NYSE:BTI) rallying 13.71% this year, Philip Morris International (NYSE:PM) gaining 8.34% and Altria (NYSE:MO) shooting up 6.18%.

Household products: Newell Brands (NASDAQ:NWL) is up 5.31% so far this year and Edgewell Personal Care (NYSE:EPC) has shown a 4.03% rise. Clorox (NYSE:CLX) is also in positive territory with a 2.43% gain. Analysts think the sector could also get a boost after the earnings season if the read is that higher pricing is offsetting inflation headwinds.
What stocks look attractive as potential defensive options? A list of consumer staples stocks that have a Seeking Alpha Quant Rating of Buy or higher and a dividend yield of over 2.40% includes Coca-Cola (KO), Alico (NASDAQ:ALCO), Coca-Cola Europacific (NASDAQ:CCEP), B&G Foods (NYSE:BGS) and Nu Skin (NYSE:NUS). Go a step beyond and run your detailed screen for sleeper defensive stock picks.