10 Attractive Consumer Services Companies

The Consumer Confidence Index jumped higher in August than was expected and is at its highest point since the current recession began. The Consumer Confidence Index rose to 51.4 which beat expectations yet is still way below 90, the minimum level to indicate a healthy economy, but the confidence level is headed in the right direction. Being that consumers seem to be gaining confidence in an economic recovery, some consumer stocks may be returning to the forefront of some investors' minds, so we decided to put together a list of attractive consumer companies from the S&P 500.

All of the companies listed have an attractive valuation and are expected to improve their Economic Margins at a greater rate than their sector peers. All of these companies are also rated as attractive according to AFG’s default investment criteria which factors in valuation, economic performance and management quality.

Exchange/Ticker AFG Rank within Sector Name Sector Investment Opportunity Valuation Signal EM Change Signal Attractive Consumer Services Companies - S&P 500 (NYSE: DRI) DARDEN RESTAURANTS Consumer Services Attractive Attractive Positive (NYSE: KR) KROGER CO THE Consumer Services Attractive Attractive Positive (NYSE: TJX) TJX COMPANIES INC THE Consumer Services Attractive Attractive Positive (NYSE: MCD) MCDONALD'S CORP Consumer Services Attractive Attractive Positive (NYSE: YUM) YUM! BRANDS INC Consumer Services Attractive Attractive Positive (NYSE: CVS) CVS CAREMARK CORP Consumer Services Attractive Attractive Positive (NYSE: FDO) FAMILY DOLLAR STORES INC Consumer Services Attractive Attractive Positive (NYSE: BIG) BIG LOTS INC Consumer Services Attractive Attractive Positive (NYSE: RSH) RADIOSHACK CORP Consumer Services Attractive Fair Positive (NYSE: WMT) WAL-MART STORES INC Consumer Services Attractive Attractive Positive

AFG's Valuation Metric – Measures the percent to target (deviation between a stock’s current trading price and its AFG current default target price). To derive the intrinsic value of a firm, AFG uses its proprietary Valuation Model (modified discounted cash flow model).

Economic Margin - A corporate performance measurement that addresses the gaps in GAAP, eliminating distortions caused by accounting policies to measure what a company is truly earning above or below their cost of capital.

Management Quality – Assesses management’s ability to make wealth creating decisions.

Comments

[captainccs:]

You got to love these in depth analyses. LOL

Aug 27 12:45 PM

[cujo:]

Kroger needs to step up and reward its employees with decent contracts. Their grocery chains in Arizona and Colorado have been working on extended contracts since last October! In Arizona, they have proposed a twenty five cent raise in 2010 and 2011, along with paying for our health insurance. This on top of the fact that we have had one twenty five cent raise in the last five years! Kroger had a 13 percent profit increase last quarter over last years second quarter. I see serious labor unrest if situation does not change.

Aug 29 06:06 PM