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5 Consumer Stocks Upbeat After Beating June Uncertainties
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Brexit-related uncertainties are still looming large over the U.S. stock market.
Brexit May Weaken UK
Market analysts believe that Brexit would weaken the currency as worries over Britain's trade with the EU would crop up if new trade barriers are raised. This would lead to a negative impact on Britain’s GDP, which in turn can hit several sectors like retail and financial services.
Post-Brexit, investors have become jittery and are resorting to safe haven stocks like tobacco and gold. Britain’s decision triggered a massive sell-off among U.S. stocks that are mostly perceived as risky assets.
Fed Unlikely to Hike Rates
The Fed even stopped short of raising the interest rate in its two-day long meeting held in Jun 2016, fearing heightened volatility post Brexit. Further, lower-than-expected U.S. non-farm payroll data released in May played a big role in keeping the interest rate intact.
Consumer Stocks: A Refuge for Investors
Even then the job scenario has shown remarkable improvement from the pits it had fallen into. Add to this still low gas prices and increasing consumer confidence and we know why the consumer sector had a strong start to fiscal 2016.
We provide you with five consumer stocks to counter the prevailing market mayhem. These stocks are fundamentally sound, carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and have shown considerable price gain over the last four weeks. Further, these have a beta of less than 0.55 suggesting that the price movement of the stock is not highly correlated with the market. Plus, being less volatile than the market, these are safer bets right now.
We would encourage investing in Reynolds American Inc. . This Zacks Rank #2 tobacco company carries a beta score of 0.35 and gained around 7.63% last month. Over the past 60 days, most of the analysts raised estimates for 2016 earnings. Reynolds also reported an increase in year-over-year earnings and sales in the first quarter of 2016, courtesy of higher cigarette and moist snuff pricing. The company’s impressive brand portfolio of tobacco products helps it to maintain a strong business momentum and generate decent profits. Further, the company invests continuously in innovation and brand building which has helped it retain its leadership in the industry.
Headquartered in Arkansas, Tyson Foods, Inc. (TSN - Free Report) produces, distributes and markets chicken, beef, pork, prepared foods and allied products. The stock climbed 8.44% in the last four weeks and holds a Zacks Rank #2. The stock also has a beta value of 0.30.
Tyson offers a wide array of meat products and enhances its portfolio through innovation and acquisitions. Its sales boosting initiatives and strong international presence are also appealing. The company delivered an average positive earnings surprise of 5.02% in the four trailing quarters. Estimates for fiscal 2016 and 2017 largely moved up over the last 60 days.
The J. M. Smucker Company (SJM - Free Report) with a Zacks Rank #1 and a beta of 0.50 had a healthy run over the last four weeks, gaining around 16.29%. Over the last 60 days, analysts turned increasingly bullish on the company, with most of the estimates moving north for 2016 earnings. J.M Smucker posted higher than expected earnings in the third quarter of fiscal 2016 to impressive growth in the top line and operating profits.
Further, the company’s coffee business exceeded expectations in 2016, driven by several factors including the successful launch of Dunkin' Donuts K-cups.
Post Holdings Inc.(POST - Free Report) carrying a Zacks Rank #1 is primarily involved in businesses like manufacturing and marketing of ready-to-eat cereals mainly in the U.S. and Canada. The company saw share price gaining 9.64% over the last four weeks and has a beta score of 0.12. Over the last 60 days, the Zacks Consensus Estimate for fiscal 2016 earnings witnessed positive revisions.
Intrawest Resorts Holdings, Inc.(SNOW - Free Report) has a Zacks Rank #1,a beta of 0.94. The company has shown significant price gain of 19.14% over the past four weeks. Moreover, earnings estimate revisions have been trending in the positive direction. Analysts who follow SNOW stock have been raising their estimates for the company lately, meaning that the EPS picture is looking a bit more favorably for Intrawest Resorts now.
You can use the Zacks Stock Screener to find other stocks with this winning combination. Investors can confidently end their search at stocks with a favorable Zacks Rank which encompasses its strong fundamentals, promises price movement and highlights analysts’ constructive view on the same.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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5 Consumer Stocks Upbeat After Beating June Uncertainties
Brexit-related uncertainties are still looming large over the U.S. stock market.
Brexit May Weaken UK
Market analysts believe that Brexit would weaken the currency as worries over Britain's trade with the EU would crop up if new trade barriers are raised. This would lead to a negative impact on Britain’s GDP, which in turn can hit several sectors like retail and financial services.
Post-Brexit, investors have become jittery and are resorting to safe haven stocks like tobacco and gold. Britain’s decision triggered a massive sell-off among U.S. stocks that are mostly perceived as risky assets.
Fed Unlikely to Hike Rates
The Fed even stopped short of raising the interest rate in its two-day long meeting held in Jun 2016, fearing heightened volatility post Brexit. Further, lower-than-expected U.S. non-farm payroll data released in May played a big role in keeping the interest rate intact.
Consumer Stocks: A Refuge for Investors
Even then the job scenario has shown remarkable improvement from the pits it had fallen into. Add to this still low gas prices and increasing consumer confidence and we know why the consumer sector had a strong start to fiscal 2016.
We provide you with five consumer stocks to counter the prevailing market mayhem. These stocks are fundamentally sound, carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and have shown considerable price gain over the last four weeks. Further, these have a beta of less than 0.55 suggesting that the price movement of the stock is not highly correlated with the market. Plus, being less volatile than the market, these are safer bets right now.
We would encourage investing in Reynolds American Inc. . This Zacks Rank #2 tobacco company carries a beta score of 0.35 and gained around 7.63% last month. Over the past 60 days, most of the analysts raised estimates for 2016 earnings. Reynolds also reported an increase in year-over-year earnings and sales in the first quarter of 2016, courtesy of higher cigarette and moist snuff pricing. The company’s impressive brand portfolio of tobacco products helps it to maintain a strong business momentum and generate decent profits. Further, the company invests continuously in innovation and brand building which has helped it retain its leadership in the industry.
REYNOLDS AMER Price
REYNOLDS AMER Price | REYNOLDS AMER Quote
Headquartered in Arkansas, Tyson Foods, Inc. (TSN - Free Report) produces, distributes and markets chicken, beef, pork, prepared foods and allied products. The stock climbed 8.44% in the last four weeks and holds a Zacks Rank #2. The stock also has a beta value of 0.30.
Tyson offers a wide array of meat products and enhances its portfolio through innovation and acquisitions. Its sales boosting initiatives and strong international presence are also appealing. The company delivered an average positive earnings surprise of 5.02% in the four trailing quarters. Estimates for fiscal 2016 and 2017 largely moved up over the last 60 days.
TYSON FOODS A Price
TYSON FOODS A Price | TYSON FOODS A Quote
The J. M. Smucker Company (SJM - Free Report) with a Zacks Rank #1 and a beta of 0.50 had a healthy run over the last four weeks, gaining around 16.29%. Over the last 60 days, analysts turned increasingly bullish on the company, with most of the estimates moving north for 2016 earnings. J.M Smucker posted higher than expected earnings in the third quarter of fiscal 2016 to impressive growth in the top line and operating profits.
Further, the company’s coffee business exceeded expectations in 2016, driven by several factors including the successful launch of Dunkin' Donuts K-cups.
SMUCKER JM Price
SMUCKER JM Price | SMUCKER JM Quote
Post Holdings Inc.(POST - Free Report) carrying a Zacks Rank #1 is primarily involved in businesses like manufacturing and marketing of ready-to-eat cereals mainly in the U.S. and Canada. The company saw share price gaining 9.64% over the last four weeks and has a beta score of 0.12. Over the last 60 days, the Zacks Consensus Estimate for fiscal 2016 earnings witnessed positive revisions.
POST HOLDINGS Price
POST HOLDINGS Price | POST HOLDINGS Quote
Intrawest Resorts Holdings, Inc.(SNOW - Free Report) has a Zacks Rank #1,a beta of 0.94. The company has shown significant price gain of 19.14% over the past four weeks. Moreover, earnings estimate revisions have been trending in the positive direction. Analysts who follow SNOW stock have been raising their estimates for the company lately, meaning that the EPS picture is looking a bit more favorably for Intrawest Resorts now.
INTRAWEST RESRT Price
INTRAWEST RESRT Price | INTRAWEST RESRT Quote
You can use the Zacks Stock Screener to find other stocks with this winning combination. Investors can confidently end their search at stocks with a favorable Zacks Rank which encompasses its strong fundamentals, promises price movement and highlights analysts’ constructive view on the same.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>