NEW YORK (TheStreet) -- With many people finishing up spring cleaning and buying new household items for the changing season, we decided to check Quant Ratings for the best household products companies to buy.
In the U.S., analysts consider the household products industry to be selling necessary goods. In other parts of the world, many household items are considered luxuries, like dishwashers. But in the U.S., no matter how the economy is doing, people will still buy these "necessities."
So, what are the best household products companies investors should be buying? Here are the top three, according to TheStreet Ratings, TheStreet's proprietary ratings tool.
TheStreet Ratings projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Based on 32 major data points, TheStreet Ratings uses a quantitative approach to rating over 4,300 stocks to predict return potential for the next year. The model is both objective, using elements such as volatility of past operating revenues, financial strength, and company cash flows, and subjective, including expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings.
Buying an S&P 500 stock that TheStreet Ratings rated a buy yielded a 16.56% return in 2014 beating the S&P 500 Total Return Index by 304 basis points. Buying a Russell 2000 stock that TheStreet Ratings rated a buy yielded a 9.5% return in 2014, beating the Russell 2000 index, including dividends reinvested, by 460 basis points last year.
Check out which household products companies made the list. And when you're done, be sure to read about which biotech companies to buy now. Year-to-date returns are based on June 3, 2015, closing prices. The highest-rated stock appears last.