
Companies cycle through varying earnings, economic conditions, and regulatory issues - all of which affect their share prices. However, not all companies have these cycles to worry about - and are considered non-cyclical. Consumer staple stocks are one such example.
Consumer staples are essential goods or products that are always in high demand, regardless of the economy's current state or the buyer’s personal financial situation. That means certain companies can expect the cash to keep rolling throughout the year. Of course, a bit more nuance is required here, like how well the company has positioned itself in its niche, its pricing strategy, and how strong the brand loyalty is. Even within the consumer staples sector, competition can be fierce.