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Consumer staples stocks are solid insurance policies in frothy markets ripe for corrections. But recently, the industry has failed to do its job as it shed 14% over the past six months. This drawdown was worse than the S&P 500’s 6.2% fall.

Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. Keeping that in mind, here is one consumer stock poised to generate sustainable market-beating returns and two we’re steering clear of.

Two Consumer Staples Stocks to Sell:

Calavo (CVGW)

Market Cap: $464.5 million

A trailblazer in the avocado industry, Calavo Growers (NASDAQ:CVGW) is a pioneering California-based provider of high-quality avocados and other fresh food products.

Why Does CVGW Fall Short?

1. Products have few die-hard fans as sales have declined by 14.7% annually over the last three years

2. Smaller revenue base of $688.3 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy

3. Gross margin of 10.6% is below its competitors, leaving less money to invest in areas like marketing and production facilities

Calavo’s stock price of $25.82 implies a valuation ratio of 15.3x forward P/E. Dive into our free research report to see why there are better opportunities than CVGW.

Tilray (TLRY)

Market Cap: $432.1 million

Founded in 2013, Tilray Brands (NASDAQ:TLRY) engages in cannabis research, cultivation, and distribution, offering a range of medical and recreational cannabis products, hemp-based foods, and alcoholic beverages.

Why Should You Sell TLRY?

1. Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 70.1 percentage points

2. Long-term business health is up for debate as its cash burn has increased over the last year

3. Negative returns on capital show management lost money while trying to expand the business, and its decreasing returns suggest its historical profit centers are aging

Tilray is trading at $0.43 per share, or 5.5x forward EV-to-EBITDA. If you’re considering TLRY for your portfolio, see our FREE research report to learn more.

One Consumer Staples Stock to Buy:

Inter Parfums (IPAR)

Market Cap: $3.85 billion

With licenses to produce colognes and perfumes under brands such as Kate Spade, Van Cleef & Arpels, and Abercrombie & Fitch, Inter Parfums (NASDAQ:IPAR) manufactures and distributes fragrances worldwide.

Why Will IPAR Beat the Market?

1. Remarkable 16.3% revenue growth over the last three years demonstrates its ability to capture significant market share

2. Products command premium prices and lead to a top-tier gross margin of 55.6%

3. Free cash flow margin jumped by 11.3 percentage points over the last year, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends