Investing.com -- RBC Capital Markets has identified several promising investment opportunities in the U.S. beverages, household, personal care, and packaged food sectors. Despite challenging macroeconomic conditions affecting consumer spending, these companies demonstrate resilience and growth potential according to the firm’s analysis.
Monster Beverage Co (MNST) leads RBC’s recommendations with an Outperform rating and $81 price target, representing approximately 11% upside potential. The energy drink category has rebounded strongly in 2024 after facing headwinds from reduced convenience store foot traffic and broader economic pressures.
Monster benefits from increasing consumer interest, strong category innovation, and retailer support. The appointment of Chief Growth Officer Rob Gehring is expected to enhance capabilities and unlock growth opportunities. RBC forecasts mid-single-digit percentage growth in the U.S. market and over 15% international growth for the next few years.
Following a recent investor meeting, Monster Beverage saw several analysts raise their price targets, including Piper Sandler and Goldman Sachs, who cited the company’s strong growth momentum and robust innovation pipeline.
The receives an Outperform rating with a $113 price target, suggesting 9% upside. Despite facing significant pressure since early 2022 due to volatility in China and Asia travel retail, along with North American share losses and leadership changes, the stock has gained over 60% since hitting lows in April 2025.
RBC believes Estee Lauder’s turnaround is progressing well, with potential for further upside as the company’s Profit Recovery and Growth Program delivers results amid stabilizing sales.
In recent developments, The Estée Lauder Companies acquired a minority stake in Mexican fragrance brand XINÚ, its first investment in a Latin American beauty brand. Separately, Rothschild Redburn downgraded the company’s stock to Sell, citing concerns about its margin recovery.
Colgate-Palmolive (CL) earns an Outperform rating and $88 price target, representing 13% upside potential. While recent quarters have shown slower growth due to global macro pressures affecting category performance, RBC views organizational changes made in recent years as enhancing capabilities that drive international business strength and market share momentum.
The firm sees opportunity for Colgate to consistently meet or exceed its long-term growth algorithm.
Colgate-Palmolive reported growth in net sales and earnings per share for the second quarter of 2025 and confirmed its guidance for the year. The company also received an upgrade to Outperform from RBC Capital.
Kimberly-Clark Corporation (KMB) rounds out the recommendations with an Outperform rating and $162 price target, offering substantial 54% upside potential. The company’s announced acquisition to become a global health and wellness leader represents a strategic pivot, though RBC acknowledges investor skepticism around large-scale M&A in consumer staples.
The firm believes KMB is undervalued but notes that realizing this value depends on successfully integrating the acquisition while maintaining core business momentum.
Kimberly-Clark Corporation declared a regular quarterly dividend of $1.26 per share. In other news, TD Cowen lowered its price target on the company, noting investor concerns related to its recently announced acquisition.
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