Are these two struggling consumer staples shares a bargain?

Two men clink whisky glasses while sitting at a table.

Consumer staples shares haven’t had the most fruitful year. The S&P/ASX 200 Consumer Staples (ASX:XSJ) index is down 0.63%. 

For context, in 2025, the S&P/ASX 200 Index (ASX: XJO) is up roughly 5%. 

The best performing sectors have been industrials and materials. These sectors have risen between 11-20% so far. 

However, when sectors underperform, there can be an opportunity to buy low. 

Here are two consumer staples shares that might fit that profile. 

Endeavour Group Ltd (ASX: EDV)

Endeavour Group is the largest consumer staples stock other than supermarket giants Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW). 

It is an alcoholic beverages retailer, hotel operator, and poker machines operator. 

Endeavour’s portfolio includes Australia’s largest retail drinks network mainly across its Dan Murphy’s and BWS brands. These account for approximately half of all off-premises retail liquor sales in Australia. 

Its share price has fallen almost 11% in 2025. 

Experts noted the company’s financial results may have fallen below expectations this year. 

However, there could be a rebound for these consumer staples shares in 2026. 

It was amongst Macquarie’s top picks in the sector earlier this month. 

The broker said on-premise alcohol sales have strengthened as well, rising about 3% year-on-year, potentially helped by the first Ashes test in late November.

Furthermore, in a report out of Bell Potter on December 12, the broker said it prefers Woolworths and Endeavour Group competitor over Coles. 

It expects the two to show better-looking growth numbers in the future and to benefit more from people spending outside the home.

A continued preference for WOW/EDV over COL citing the cycling of softer comps in 2Q26-3Q26 due to supply chain issues in FY25 and the greater exposure they offer to OOH.

With the broker’s price target of $4.30, there is a potential upside of almost 15%. 

Ridley Corporation Ltd (ASX: RIC)

Ridley Corporation is another consumer staples share that has underperformed this year.

The company is an animal feed manufacturer, engaged in the production and market of stock feed and animal feed supplements.

In 2025, its share price has fallen 5% despite the company posting solid earnings in FY25. 

The FY25 EBITDA from continuing operations was $97.8 million, up 8.6% on FY24. 

Therefore, it could also be a buy-low opportunity within the sector.

Shares closed yesterday at $2.56 each. However TradingView has a 12 month price target of $3.35. 

This indicates an upside of more than 30%. 

The post Are these two struggling consumer staples shares a bargain? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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