RBC Highlights Four U.S. Consumer Staples Stocks With Notable Upside Potential

Key Moments

RBC Capital Markets assigns Outperform ratings to MNST, EL, CL, and KMB with upside potential ranging from 9% to 54%.
Monster Beverage Co (MNST) remains RBC’s top pick, supported by renewed energy drink demand and strong international growth forecasts.
Kimberly-Clark Corporation (KMB) is viewed as undervalued, but its upside depends on successful execution of a major health and wellness acquisition.

RBC’s Sector View and Stock Selection

RBC Capital Markets has spotlighted four U.S.-listed names in the beverages, household, personal care, and packaged food space as attractive opportunities, even as consumers contend with a difficult macroeconomic backdrop. The firm argues that these companies are showing resilience and meaningful growth prospects despite pressure on discretionary spending.

Company	Ticker	Rating	RBC Price Target	Implied Upside
Monster Beverage Co	MNST	Outperform	$81	~11%
The Estée Lauder Companies Inc.	EL	Outperform	$113	9%
Colgate-Palmolive	CL	Outperform	$88	13%
Kimberly-Clark Corporation	KMB	Outperform	$162	54%

Monster Beverage: RBC’s Preferred Name in Beverages

Monster Beverage Co (MNST) tops RBC’s list, with an Outperform rating and a price target of $81, implying roughly 11% upside. According to RBC, the energy drink category has staged a strong recovery in 2024 after earlier challenges linked to weaker convenience store traffic and broader economic headwinds.

The firm highlights Monster’s benefit from growing consumer interest in energy drinks, a robust pace of product innovation, and supportive retail partners. The recent appointment of Chief Growth Officer Rob Gehring is expected to further strengthen the company’s growth capabilities and open new opportunities.

RBC projects mid-single-digit percentage growth in Monster’s U.S. business and more than 15% growth internationally over the next several years. Following a recent investor meeting, multiple analysts raised their price targets on the stock, including Piper Sandler and Goldman Sachs, citing “the company’s strong growth momentum and robust innovation pipeline.”

Estée Lauder: Turnaround Progress and New Strategic Investment

The Estée Lauder Companies Inc. (EL) is also rated Outperform by RBC, with a price target of $113 and an implied upside of 9%. The stock has been under pressure since early 2022 due to volatility in China and Asia travel retail, share losses in North America, and leadership transitions. Despite these challenges, the shares have climbed more than 60% from their lows in April 2025.

RBC views the company’s turnaround efforts positively, pointing to ongoing execution of its Profit Recovery and Growth Program and signs of stabilizing sales. The firm sees room for additional upside if these initiatives continue to gain traction.

On the strategic front, Estée Lauder has acquired a minority interest in Mexican fragrance label XINÚ, marking its first investment in a Latin American beauty brand. At the same time, sentiment is not uniformly positive: Rothschild Redburn has downgraded the stock to Sell, expressing concerns about the pace and durability of its margin recovery.

Colgate-Palmolive: International Momentum and Execution Upside

Colgate-Palmolive (CL) has been assigned an Outperform rating by RBC with a price target of $88, implying 13% upside potential. The firm acknowledges that the company has posted slower growth in recent quarters as global macroeconomic pressures weighed on category performance.

However, RBC argues that organizational changes implemented over the past few years have strengthened Colgate’s capabilities, particularly in driving its international business and supporting market share gains. The firm believes there is a meaningful opportunity for the company to consistently deliver on – or surpass – its long-term growth framework.

Colgate-Palmolive reported an increase in net sales and earnings per share for the second quarter of 2025 and reaffirmed its full-year guidance. RBC subsequently upgraded the stock to Outperform, underscoring its confidence in the company’s trajectory.

Kimberly-Clark: Valuation Appeal Tied to Major Acquisition

Kimberly-Clark Corporation (KMB) completes RBC’s list with an Outperform rating and a $162 price target, implying a substantial 54% upside. The company has announced an acquisition aimed at transforming it into a global health and wellness leader, representing a significant strategic shift.

RBC acknowledges that investors are wary of large-scale mergers and acquisitions in the consumer staples space, and that skepticism is evident around this deal. Even so, the firm contends that KMB’s shares are undervalued. Unlocking that value, however, hinges on the company’s ability to effectively integrate the new assets while preserving momentum in its core operations.

Kimberly-Clark has declared a regular quarterly dividend of $1.26 per share. In separate analyst action, TD Cowen has lowered its price target on the company, pointing to investor concerns tied to the newly announced acquisition.