When Is Now the Right Moment to Buy Stocks? A Case for Consumer Staples

The question isn’t whether you should invest, but rather what you should buy stocks in right now. With $1,000 to deploy, savvy investors are beginning to notice something important about market dynamics: while technology stocks have dominated headlines and driven broader indices higher, an entire sector of businesses has quietly fallen out of favor. This presents an intriguing opportunity for those willing to think differently about their investment strategy.

Market Imbalance: Why Consumer Staples Stocks Lag Behind

Over the past year, the picture of market performance reveals a fascinating disconnect. Consumer staples stocks—companies that produce the everyday essentials we continue purchasing regardless of economic conditions—have delivered merely 1.5% returns. Meanwhile, the S&P 500 index has surged 17%, a substantially more impressive showing. Yet this headline comparison masks a far more interesting story about how these returns unfolded.

The journey matters as much as the destination. Throughout early 2025, essential consumer goods stocks rallied strongly, climbing approximately 10%. This surge occurred precisely when the broader market was stumbling. The S&P 500, by contrast, began its period in retreat, declining roughly 15% as large technology companies—which comprise nearly 35% of the index—experienced sharp pullbacks. Consumer staples represent only about 5% of the S&P 500’s composition, yet they’ve become increasingly disconnected from the index’s overall trajectory.

This performance divergence reveals something critical: a narrow group of high-tech companies has been driving the entire market’s gains. The technology sector’s dominance raises questions about market breadth and sustainability. For investors concerned about concentration risk or worried about an artificial intelligence bubble, this disparity offers both a cautionary note and an investment thesis.

The Case for Contrarian Investing in Defensive Sectors Right Now

Traditionally, consumer staples have served as defensive investments—the stocks investors buy stocks in during uncertain times because people continue purchasing food, personal care products, and household essentials regardless of economic conditions. Yet this sector has been systematically ignored as capital has chased technology opportunities.

If you believe the market is overextended in tech equities, now appears to be the right moment to buy stocks in overlooked areas. The three companies worth evaluating offer different risk-reward profiles, making them suitable for investors with varying objectives.

Coca-Cola (NYSE: KO) represents the conservative choice. Organic sales growth reached 6% in Q3 2025, an improvement from 5% in the previous quarter—achieved despite headwinds from cost-conscious consumers and government initiatives promoting healthier food options. The company’s 3% dividend yield places it squarely in the category of reliable income generators. Most notably, Coca-Cola has increased its dividend continuously for over six decades, earning the “Dividend King” designation. For investors prioritizing steady income, this makes it a sensible allocation from a $1,000 portfolio.

Procter & Gamble (NYSE: PG) also qualifies as a Dividend King, with an even longer dividend growth streak—six years longer than Coca-Cola’s. Its 3% yield compares favorably to Coca-Cola, with the important distinction that P&G’s yield currently sits near five-year highs while Coca-Cola’s is more middling. Organic sales have held steady around 2% annually, reflecting business consistency rather than explosive growth. For value-conscious investors seeking both dividend stability and relative pricing attractiveness, P&G merits serious consideration.

Conagra (NYSE: CAG) occupies the aggressive investor’s lane. With an 8.7% yield, it offers substantially more income than the safer alternatives, but carries meaningful risk. While companies like Coca-Cola and P&G control industry-leading brands, Conagra’s portfolio—including properties like Slim Jim—consists of well-known but non-dominant positions. This showed in Q2 fiscal 2026 results, where organic sales declined 3%. The company’s dividend was actually cut during the Great Recession (2007-2009), unlike Coca-Cola and P&G which increased payments throughout that crisis. Conagra represents a turnaround play suitable only for risk-tolerant investors, though the high yield and potential recovery could justify inclusion for aggressive portfolios.

Three Different Ways to Build Your Position

With $1,000 in capital, an investor could purchase approximately 14 shares of Coca-Cola, seven shares of Procter & Gamble, or 61 shares of Conagra. Each allocation provides exposure to an undervalued sector historically reliable during market turmoil. Rather than chase technology stocks alongside everyone else, deploying capital into consumer staples now could position you to benefit when market leadership inevitably rotates.

Making the Contrarian Case to Buy Stocks in Unfashionable Sectors

The psychological difficulty of buying what others are selling cannot be overstated. In February 2026, the path of least resistance leads toward technology names. Yet true contrarian positioning requires developing conviction in areas where consensus has shifted negative. Consumer staples offer that opportunity: defensive business models, dividend income, and potential capital appreciation if the current tech dominance eventually reverses.

Historical precedent supports this thinking. The Motley Fool’s investment research team has identified stocks destined for substantial appreciation, with documented cases of extraordinary returns. A $1,000 Netflix investment made in December 2004 would have grown to $489,300 today. Similarly, a $1,000 Nvidia position initiated in April 2005 would have appreciated to $1,159,283. These weren’t fashionable sectors at entry—they were forward-looking opportunities recognized before consensus caught up.

Right now is a good time to buy stocks in sectors previously abandoned. Whether your temperament aligns with Coca-Cola’s stability, Procter & Gamble’s blend of income and value, or Conagra’s growth potential, the broader point remains: contrarian positioning in consumer staples could prove rewarding for disciplined investors willing to buy stocks when others are selling them.