3 Undervalued Consumer Staples Stocks to Buy Amid Market Volatility
ByAinvest
Friday, Aug 22, 2025 10:29 pm ET2min read
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Coty Inc. (COTY)
Coty Inc. (COTY) experienced a significant drop in its stock price following the announcement of a surprise fiscal fourth-quarter loss and weak guidance. The company reported a net loss of $72.1 million and an adjusted loss of $0.05 per share, which fell short of analyst expectations. Revenue fell 8% year-over-year to $1.25 billion, while like-for-like sales dropped 9%. CEO Sue Nabi cited retailer caution, softness in U.S. demand, pressure in the mass cosmetics market, and slower fragrance sales as factors contributing to the loss [1].
Chanson International Holding (CHSN)
Chanson International Holding (CHSN) announced an 80-for-1 reverse stock split, aiming to increase the price per share and maintain compliance with exchange rules. The stock has seen a 75% decline in value over the past month. The reverse stock split is expected to take effect at 5:00 p.m. Eastern Time on August 15, 2025, reducing the number of shares from approximately 7.6 million to approximately 509,000 shares [2].
22nd Century Group Inc. (XXII)
22nd Century Group Inc. (XXII) reported worse-than-expected Q2 2025 results, with revenue declining 49% year-over-year and 31% sequentially. The company's gross loss remained stable at $(0.6) million, while operating loss increased to $(3.0) million. EBITDA was $(2.8) million, and net debt was reduced significantly to $0.7 million following a warrant exercise. The company now expects EBITDA breakeven in Q2 2026, with longer-term revenue growth expectations of +127% in 2026, +68% in 2027, and +39% in 2028 driven by VLN® market penetration in the $12 billion tobacco market [3].
Conclusion
The oversold conditions of Coty Inc. (COTY), Chanson International Holding (CHSN), and 22nd Century Group Inc. (XXII) present opportunities for investors to consider. However, investors should carefully evaluate the underlying fundamentals and risks associated with these stocks before making any investment decisions. The reverse stock splits for Coty and Chanson, as well as the restructuring efforts of 22nd Century Group, highlight the companies' efforts to address their respective challenges.
References
[1] https://www.tikr.com/blog/coty-stock-falls-over-20-after-the-cosmetics-company-reports-a-surprise-loss
[2] https://www.ainvest.com/news/upcoming-stock-splits-august-18-22-salarius-entero-chanson-lanzatech-gibo-2508-16/
[3] https://www.theglobeandmail.com/investing/markets/markets-news/Newsfile/34337768/emerging-growth-research-releases-q2-2025-update-report-on-22nd-century-group/
COTY--
XXII--
Coty Inc. (COTY) and Chanson International Holding (CHSN) are among the most oversold stocks in the consumer staples sector, with RSI values of 24.5 and 23.2, respectively. Coty's stock fell 15% over the past six months and has a 52-week low of $4.46. Chanson International Holding announced an 80-for-1 reverse stock split and saw a 75% decline in stock value over the past month. 22nd Century Group Inc. (XXII) reported worse-than-expected Q2 results and its stock fell 39% over the past month.
Coty Inc. (COTY) and Chanson International Holding (CHSN) are among the most oversold stocks in the consumer staples sector, as indicated by their Relative Strength Index (RSI) values of 24.5 and 23.2, respectively. Coty's stock has fallen 15% over the past six months and has a 52-week low of $4.46. Chanson International Holding announced an 80-for-1 reverse stock split and saw a 75% decline in stock value over the past month. 22nd Century Group Inc. (XXII) reported worse-than-expected Q2 results, with its stock falling 39% over the past month.Coty Inc. (COTY)
Coty Inc. (COTY) experienced a significant drop in its stock price following the announcement of a surprise fiscal fourth-quarter loss and weak guidance. The company reported a net loss of $72.1 million and an adjusted loss of $0.05 per share, which fell short of analyst expectations. Revenue fell 8% year-over-year to $1.25 billion, while like-for-like sales dropped 9%. CEO Sue Nabi cited retailer caution, softness in U.S. demand, pressure in the mass cosmetics market, and slower fragrance sales as factors contributing to the loss [1].
Chanson International Holding (CHSN)
Chanson International Holding (CHSN) announced an 80-for-1 reverse stock split, aiming to increase the price per share and maintain compliance with exchange rules. The stock has seen a 75% decline in value over the past month. The reverse stock split is expected to take effect at 5:00 p.m. Eastern Time on August 15, 2025, reducing the number of shares from approximately 7.6 million to approximately 509,000 shares [2].
22nd Century Group Inc. (XXII)
22nd Century Group Inc. (XXII) reported worse-than-expected Q2 2025 results, with revenue declining 49% year-over-year and 31% sequentially. The company's gross loss remained stable at $(0.6) million, while operating loss increased to $(3.0) million. EBITDA was $(2.8) million, and net debt was reduced significantly to $0.7 million following a warrant exercise. The company now expects EBITDA breakeven in Q2 2026, with longer-term revenue growth expectations of +127% in 2026, +68% in 2027, and +39% in 2028 driven by VLN® market penetration in the $12 billion tobacco market [3].
Conclusion
The oversold conditions of Coty Inc. (COTY), Chanson International Holding (CHSN), and 22nd Century Group Inc. (XXII) present opportunities for investors to consider. However, investors should carefully evaluate the underlying fundamentals and risks associated with these stocks before making any investment decisions. The reverse stock splits for Coty and Chanson, as well as the restructuring efforts of 22nd Century Group, highlight the companies' efforts to address their respective challenges.
References
[1] https://www.tikr.com/blog/coty-stock-falls-over-20-after-the-cosmetics-company-reports-a-surprise-loss
[2] https://www.ainvest.com/news/upcoming-stock-splits-august-18-22-salarius-entero-chanson-lanzatech-gibo-2508-16/
[3] https://www.theglobeandmail.com/investing/markets/markets-news/Newsfile/34337768/emerging-growth-research-releases-q2-2025-update-report-on-22nd-century-group/

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