9 Best Stocks For Babies

Best Stocks For Babies: Whether you are looking to buy baby stocks or stocks for your babies, you want to find companies that will expand when the market is hot but also be somewhat recession-proof.

Industries that sell to kids fit this bill perfectly. On the one hand, the world will always produce babies, and these babies will always need stuff. On the other hand, when the market is good, babies will be able to get more toys, clothing, and gadgets designed to help them grow and help their parents get peace of mind about how they are raising their kids. 

To that end, check out these nine stocks that are perfect for the baby and childcare industry.  

Carter’s (CRI)

Summary: Founded in 1865, Carter’s (CRI) is a child care designer and creator of baby and child clothing. It is a massively popular company and responsible for the sale of baby clothing throughout the entire world, with some estimates holding that its clothing may occupy 1/4 of the entire childcare market.

Reasons to invest:

• Solid brand name: As its sales figures indicate, Carter’s is a successful and healthy brand name, one that has been around for over a century and historically has found a way to expand in a tough and increasingly competitive market. This name is widely recognized by parents.
• Multiple platforms: Carter’s has a diverse array of sales pipelines. It sells on its website and also has deals in numerous different department and big-box stores, including Target and Walmart. Carter’s has its own exclusive brand name with each of these businesses. It also developed a partnership with Amazon, where it sells its “Simple Joys” brand. In other words, Carter’s has vitally necessary retail connections that can help ensure its continued growth well into the future. 
• Healthy dividend: Unlike many of the other stocks on this list, Carter’s offers a dividend of 2.65%. This is a relatively healthy payout within this industry and provides a nice bonus for your investment. 

Disney (DIS)

Summary: Disney (DIS) is the international media, tourism, and recreational goods conglomerate. It is the creator of some of the most recognizable brands in the entire world and continues to expand its media empire. While the company’s focus has changed throughout its history, babies and kids remain one of its primary customer sources. The Disney brand name remains extremely powerful and recognizable for kids. 

Reasons to invest:

• A brand like none other: Quite simply, there are few brands as recognizable as Disney – Coke may be a rare exception. While its year-over-year stock price slowed, that shouldn’t mask a larger trend, which has been consistent upward movement. This is due, in no small part, to the power of the Disney brand. Disney consistently ranks among the ten most recognizable brands in the entire world. As a result, it is well-positioned to weather any storm and churn out consistent revenue. 
• Diversified revenue: Disney hasn’t been just Mickey Mouse for some time. It has brands and holdings across an array of industries, including tourism, multiple media conglomerates, consumer goods, and more. And all of this ignores its plentiful brand partnerships, retail stores, and entertainment offerings. As a result, investing in Disney means you get so much more than just an investment in a popular kids’ stock.

Procter & Gamble (PG)

Summary: Procter & Gamble (PG) is a consumer goods staple within the country. It is one of the oldest in the country, having been founded in 1837.

Over time, the company has continued to grow, offering hundreds of products and managing some of the most well-known brands in the United States. This includes a slew of different industries, with Procter & Gamble listing ten industries – including children & babies – under their overall corporate umbrella.

Reasons to invest:

• Consumer goods staple: Procter & Gamble is one of the largest producers of consumer goods in the country. It has a diverse array of products, including baby products, family consumables, cleaning supplies, and more. This makes their business at least somewhat recession-proof, and it offers investors a chance to park their money somewhere where it will be protected and profitable.
• Dividend Aristocrat: P&G has a rare status: it is a dividend aristocrat. This means that it has increased its dividend for at least 25 years. P&G has actually offered a dividend increase for the past 65 years. This shows the company’s commitment to its shareholders and the fact that its profits have always been able to support these very significant increases. 

 Children’s Place (PLCE)

Summary: Children’s Place (PLCE) is a retailer of kids and children’s clothing. It has stores that are located throughout the country, as well as a healthy online store that allows parents and family to order goods over the internet.

The company also owns many other brands, including Place, Baby’s Place, and Gymboree. All of these brands are sold under their brand umbrella. Its stores tend to be brick and mortar operations that are located in malls or near malls. Right now, Children’s Place has over 1,000 stores. 

Reasons to invest:

• Solid fundamentals: Children’s Place has consistently performed well over the past years. The firm’s financial metrics are increasing across the board. Compared to the last year, it is showing significant increases in revenue, net income, EPS, net profit margin, and more.
• History of outperforming expectations: One of the more interesting facets of Children’s Place is that it consistently beat analysts’ expectations. A look at its performance over the past four quarters shows that it has beaten these expectations consistently. This also helps to explain why the majority of the ratings of this stock are a “buy” or “bullish“. 

Amazon (AMZN)

Summary: Amazon (AMZN) is one of the largest sellers of goods in the entire world. The company has evolved from a business that just sold a few categories (books, toys and games) online to a business where anyone can get almost anything in a matter of days.

As it has expanded, Amazon has gobbled up more and more of the traditional brick-and-mortar stores while also changing the way that Americans shop and expect to get consumer goods.  

Reasons to invest:

• Unparalleled growth: Amazon is…well, it’s Amazon. The company has shown faster growth than almost any other in history, zooming from a niche website to the leader in consumer goods over the past two decades. Amazon has fundamentally reordered shopping, is a massive juggernaut and appears set to only consider growing over the next few years. The fact that it has become the second-largest employer in the United States only further demonstrates its growth.
• Diversified revenue: Amazon is so much more than Prime. It is involved in a slew of industries, including cloud computing, entertainment, and more. This helps to diversify its revenue streams and ensures that shareholders are likely to see profits across a slew of areas, not just children’s goods. 

Natus Medical (NTUS)

Summary: Natus Medical (NTUS) is a medical company that specializes in a variety of fields, including newborns. In that capacity, it helps children with a range of problems by creating medical equipment and supplies. This includes a variety of cutting-edge, technologically-oriented products.

Reasons to invest:

• Solid fundamentals: Like other companies on this list, Natus Medical has performed well in year-over-year comps. The company’s technological products have clearly positioned it well for success, and this has led them to a series of improvements across virtually every fundamental metric. It has outperformed its previous quarter’s performance in terms of revenue, net income, net change in cash, and more.
• Biostock positioning: Natus may serve children and babies, but the stock obvious is involved in other areas, including biomedicine and medical technology. This diversifies the company’s overall strategy and puts it in a stronger position than most baby-related companies.

Johnson & Johnson (JNJ)

Summary: Johnson & Johnson (JNJ) is a major international conglomerate that has ties to numerous sectors, including medicine, consumer goods, and pharmaceutical drugs. This gives the company a huge presence, one that has been expanded by its recent one-shot vaccine.

However, that vaccine’s (relative) lack of success, when compared to other ones (Pfizer and Moderna), has hurt the company’s future revenue stream. Still, it is a massive organization and one that can withstand this blip.

Reasons to invest:

Diverse presence: Johnson & Johnson has a major brand awareness across the world, and its product lines extend well beyond just making children’s products. This means that individuals who purchase JNJ stock are buying much more than just their line of baby products.  

Oshkosh (OSK)

Summary: Oshkosh (OSK) produces children’s and babies clothing and has done so since 1895. Its primary market is babies and toddlers.

Reasons to invest:

• Positive annual growth: Oshkosh has shown significant growth this past year compared to last year across all financial metrics, thus implying that the company was well-positioned for future and continued growth. 
• Continued presence: Oshkosh has been a brand staple for decades, one worn by kids, their parents, and even their grandparents. This kind of brand staying power can help the company weather any storms.  

Kimberly Clark (KMB)

Summary: Kimberly Clark (KMB) is a consumer goods company. The primary product is selling paper-based products, including tissues, paper towels, toilet paper, and more. It owns numerous brands and has a diverse array of products, many of which are targeted primarily at babies, kids, and teenagers.

At over 150 years old, KMB is one of the oldest companies on this list.

Reasons to invest:

• Wide consumer base: Kimberly Clark’s consumer base is much more than just babies, as they sell to kids and adults of all ages.  
• Brand name recognition: Kimberly Clark has some of the most recognizable brand names in the country. This includes Kleenex, Pull-Ups, Huggies, and more. These are huge names within the hygiene and diaper world, and this brand recognition is likely to only increase over time. The company continues to post gains in sales and profits, thus reflecting a solid positioning that makes it a solid future investment. 

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.