Consumer Staples
Overweight The S&P household products index got a solid lift last week on the back of upbeat earnings from sector heavyweight Procter & Gamble (PG), though this was also part of a greater rotation into consumer staples. PG noted volume increases across all of their consumer staples…
Digging In To Packaged Foods…
Consumer staples stocks have been staging a recovery late in the year, buoyed by an exceptionally strong consumer. However, the S&P packaged foods sub-index has not participated in the rebound, held back by trade and currency headwinds in this export market-exposed sector. Still, we remain…
Following up from our inaugural U.S. Equity Market Indicators Report in early-August 2017, this week we introduce the second part in our Indicators series. In this Special Report we have drilled down to the ten GICS1 S&P 500 sectors (excluding the real estate sector) and have compiled the most…
Neutral U.S retailers have been surging recently as customers have been piling in faster than they have in a long time. Walmart reported results last week showing a 4.5% increase in same-store sales and a 40% increase in online sales; the stock responded by rising more than 9%. Target…
Please note that our next publication will be a joint special report with BCA’s Geopolitical Service that will be published on Wednesday, August 1st instead of our usual Monday publishing schedule. Further, there will be no publication on Monday, August 6th. We will be returning to our normal…
Underweight The S&P soft drinks index has been rallying for the past month after finding its decade low in mid-May. The rally appears to be driven by eroding fears of margin impacts from aluminum tariffs, demand destruction from higher prices to protect profits and general global trade…
Overweight Investors have deserted consumer staples stocks at a dizzying speed as this safe haven sector has lost its allure. Our sense is that this consumer staples wholesale liquidation provides a great buying opportunity, especially for longer-term oriented capital with a time horizon of at…
Overweight Not only have investors shunned consumer staples stocks in general, but the S&P packaged foods sub-index has also suffered, even trailing the broad staples sector. We are not willing to throw in the towel in this staples sub-index that offers hidden value. A number of leading…
Highlights Portfolio Strategy A rare buying opportunity has emerged in the S&P consumer staples index, especially for long-term oriented capital. The bearish story is already baked into current valuations, and industry green-shoots are flying under the radar. Similarly, the bearish…