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Today we are using Ockham’s screening tool in order to find consumer-driven stocks that are most unloved by the crowd. For the data on crowd sentiment we once again turn to the web’s most robust dataset of investor’s opinions on individual stocks, Motley Fool CAPS. We also screened out stocks with a market cap of under $1 billion in an attempt to filter out stocks with very few opinions.

Out of the 175 stocks that met our initial screen, only 15 were given the most bearish rating of 1-star according to the CAPS crowd. A 1-star rating means that those investors surveyed are convinced that these stocks will underperform the broad market indexes. We found it interesting that not one of these stocks receives an Undervalued rating at Ockham, so in this case the Ockham valuation methodology agrees with the opinions of the investing herd. It is rarely the case that Ockham and the crowd agree completely because we often look at unloved stocks as undervalued and a buying opportunity, but apparently this is one of those rare cases. (Click to enlarge)


In order of largest to smallest, here is the listing of Consumer Goods stocks that receive a 1-star rating from Motley Fool with the current Ockham valuation stance in parenthesis. As always, we have linked back to the full reports on these stocks for further detail on how we arrived at our rating.

  1. Daimler AG (DAI) (Overvalued)
  2. Estee Lauder (NYSE:EL) (Fairly Valued)
  3. Sanyo Electric (OTC:SANYY) (Fairly Valued)
  4. Navistar International (NYSE:NAV) (Overvalued)
  5. Green Mountain Coffee Raosters (NASDAQ:GMCR) (Fairly Valued)
  6. Lennox International (NYSE:LII) (Greatly Overvalued)
  7. Federal-Mogul (NASDAQ:FDML) (Overvalued)
  8. Pilgrim's Pride (NASDAQ:PPC) (Fairly Valued)
  9. Wacoal Holdings (OTCQX:WACLY) (Overvalued)
  10. Brunswick Corp (NYSE:BC) (Overvalued)
  11. ArvinMeritor (ARM) (Overvalued)
  12. Eastman Kodak (EK) (Fairly Valued)
  13. Tenneco (NYSE:TEN) (Overvalued)
  14. SCP Pool (NASDAQ:POOL) (Overvalued)
  15. Synutra International (NASDAQ:SYUT) (Fairly Valued)

Original post

Source: Consumer Stocks That the Crowd Loves to Hate