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Zacks Investment Ideas feature highlights: British American Tobacco and Guess
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For Immediate Release
Chicago, IL – June 23, 2022 – Today, Zacks Investment Ideas feature highlights British American Tobacco (BTI - Free Report) and Guess (GES - Free Report) .
2 Consumer Staples Stocks to Buy with Dividend Yields Over 5%
Easing inflation is starting to make several consumer staples stocks more attractive as opportunity continues to brew. The prospects of a strengthening consumer could captivate the earnings potential for many consumer-centric companies.
Considering this scenario here are two consumer staples stocks that investors may want to consider as their outlook has brightened and they offer stellar dividends.
British American Tobacco
Big tobacco companies are known for their lucrative dividend yields and British American Tobacco’s stock looks compelling at the moment with a Zacks Rank #2 (Buy).
With an enticing 8.70% dividend yield, British American Tobacco’s top and bottom line growth has become more intriguing as well. Notably, British American Tobacco's dividend yield is nicely above its hefty industry average of 5.35% and towers over the S&P 500’s 1.46% average.
Furthermore, earnings are now expected to be up 4% in fiscal 2023 and rise another 5% in FY24 at $5.05 per share. Total sales are expected to dip roughly -1% this year but rebound and rise 4% in FY24 to $36.43 billion.
Even better, at $34 a share British American Tobacco stock trades at just 6.9X forward earnings which is attractively beneath the industry average of 9.5X and the benchmark’s 20.3X.
Guess
Among apparel companies, Guess Inc. is worthy of investors’ consideration and also sports a Zacks Rank #2 (Buy). Guess’ outlook is strengthening as easing inflation should allow consumers to spend more on clothing and fashion accessories.
This makes Guess stock attractive with its 5.85% dividend yield significantly above the benchmark while many of its textile and apparel peers don’t offer dividends.
With that being said, Guess’ earnings are forecasted to rise 2% in its current fiscal 2024 and edge up another 6% in FY25 at $2.99 per share. On the top line, sales are projected to be up 3% in FY24 and rise another 3% in FY25 to $2.84 billion.
With Guess stock trading at $20, its P/E valuation also stands out at 7.2X forward earnings. This is well below the benchmark and attractively beneath its industry average of 9.8X.
Takeaway
British American Tobacco and Guess stock look attractive at the moment considering their favorable outlooks and stellar dividends. Now appears to be a good time to buy with both of these consumer staples stocks starting to offer strong value to investors.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: British American Tobacco and Guess
For Immediate Release
Chicago, IL – June 23, 2022 – Today, Zacks Investment Ideas feature highlights British American Tobacco (BTI - Free Report) and Guess (GES - Free Report) .
2 Consumer Staples Stocks to Buy with Dividend Yields Over 5%
Easing inflation is starting to make several consumer staples stocks more attractive as opportunity continues to brew. The prospects of a strengthening consumer could captivate the earnings potential for many consumer-centric companies.
Considering this scenario here are two consumer staples stocks that investors may want to consider as their outlook has brightened and they offer stellar dividends.
British American Tobacco
Big tobacco companies are known for their lucrative dividend yields and British American Tobacco’s stock looks compelling at the moment with a Zacks Rank #2 (Buy).
With an enticing 8.70% dividend yield, British American Tobacco’s top and bottom line growth has become more intriguing as well. Notably, British American Tobacco's dividend yield is nicely above its hefty industry average of 5.35% and towers over the S&P 500’s 1.46% average.
Furthermore, earnings are now expected to be up 4% in fiscal 2023 and rise another 5% in FY24 at $5.05 per share. Total sales are expected to dip roughly -1% this year but rebound and rise 4% in FY24 to $36.43 billion.
Even better, at $34 a share British American Tobacco stock trades at just 6.9X forward earnings which is attractively beneath the industry average of 9.5X and the benchmark’s 20.3X.
Guess
Among apparel companies, Guess Inc. is worthy of investors’ consideration and also sports a Zacks Rank #2 (Buy). Guess’ outlook is strengthening as easing inflation should allow consumers to spend more on clothing and fashion accessories.
This makes Guess stock attractive with its 5.85% dividend yield significantly above the benchmark while many of its textile and apparel peers don’t offer dividends.
With that being said, Guess’ earnings are forecasted to rise 2% in its current fiscal 2024 and edge up another 6% in FY25 at $2.99 per share. On the top line, sales are projected to be up 3% in FY24 and rise another 3% in FY25 to $2.84 billion.
With Guess stock trading at $20, its P/E valuation also stands out at 7.2X forward earnings. This is well below the benchmark and attractively beneath its industry average of 9.8X.
Takeaway
British American Tobacco and Guess stock look attractive at the moment considering their favorable outlooks and stellar dividends. Now appears to be a good time to buy with both of these consumer staples stocks starting to offer strong value to investors.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.