This is the time of the year when strategists are busy sending out their annual outlooks. Here on the Global Investment Strategy team, we decided to go one step further. Rather than pontificating about what could happen in 2025, we…
High food and fertilizer prices could morph into food crises in several developing nations. A Special Report from our Emerging Markets Strategy team reckons that Lebanon, Egypt, Kenya, Peru, Pakistan, and Sri Lanka are most at-…
Neutral Following up from last week’s report, we heed the message from our research to be wary of staples stocks at the depth of the recession and downgrade the S&P packaged foods index to neutral. Food & beverage store…
Highlights Portfolio Strategy Our conservative dividend growth assumptions especially for the next three years – largely mimicking the GFC experience – result in an SPX 3,000 fair value target. Relative performance…
However, the S&P packaged foods sub-index has not participated in the rebound. These exports-oriented stocks have been held back by trade and currency headwinds. Still, we remain constructive on the index as those handicaps…
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…
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…
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-…
The S&P packaged foods index has enjoyed a solid Q1 earnings season; results have bested forecasts, leading to some of the highest positive earnings revisions of the past decade (top panel). Robust demand growth, both domestic and…
This week has seen the beleaguered packaged foods index finally catch a bid, driven by exceptional earnings at two of the larger constituents, MDLZ and K. Both highlighted organic volume growth and a better pricing backdrop as the key…