Mon, Sep. 12, 10:48 AM
- Goldman Sachs issues a broad warning on the consumer staples sector with Federal Reserve rate hikes looming in the future and continued pressure in emerging markets.
- General Mills (GIS +0.8%) and Church & Dwight (CHD -0.2%) are singled out as at risk for multiple contraction.
- Staples which Goldman sees performing well in a rising rate environment include Monster Beverage (MNST +0.1%), Kraft Heinz (KHC +1.5%), and Philip Morris.
- ETFs: XLP, VDC, FXG, RHS, FSTA, CNSF, JHMS.
Fri, Sep. 2, 12:15 PM
Thu, Aug. 4, 10:34 AM
- Church & Dwight (CHD +2.1%) reports organic sales growth of 3.7% in Q2 driven by volume +3.1% and favorable product mix and pricing +0.6%.
- Consumer domestic net sales increased 4.9% to $669.8M, led by 9.9% growth in personal care products.
- Consumer international net sales expanded 4.2% to $136.4M.
- Specialty products net sales declined 8.6% to $71.2M.
- Gross margin rate improved 250 bps to 46.5%.
- SG&A expense rate fell 70 bps to 12.8%.
- Operating margin rate grew 220 bps to 20%.
- Q3 Guidance: Organic sales growth: ~+1% to +2%; Diluted EPS: $0.92.
- FY2016 Guidance: Organic sales growth: ~+3.0% to 4%; Gross margin rate: ~+110 bps; Market spending: ~12.4% of total sales; SG&A expense rate: 12.5% (+40 bps); Operating margin rate: ~+50 bps; Adjusted EPS: $3.50 to $3.54 (+8% to +9%); Tax rate:~35%.
Thu, Aug. 4, 7:02 AM
Wed, Aug. 3, 5:30 PM
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Wed, Jul. 13, 11:35 AM
- It's steady as she goes again for the group of well-known consumer staples stocks that investors continue to find appealing amid global volatility and low interest rates.
- Procter & Gamble (PG +0.2%), Colgate-Palmolive (CL +0.4%), Clorox (CLX +0.6%), Kimbery-Clark (KMB +0.3%), Coca-Cola (KO +0.2%), PepsiCo (PEP +0.7%), Altria Group (MO +0.5%), Philip Morris International (PM +0.1%), Church & Dwight (CHD +0.3%), and Unilever (UN, UL) have all outperformed the S&P 500 Index this year with returns ranging from 7% to 18%. Kraft Heinz (KHC +1%), Energizer (ENR -0.6%), Hershey (HSY +0.4%), Campbell Soup (CPB +0.3%), and J.M. Smucker (SJM +0.4%) are all up at least 20% YTD.
- Goldman Sachs has an explanation on why a generous valuation is warranted for the staples favorites.
- "We raise our average Staples target multiples to 20-22X P/E, up from the 19-20X range prior, to reflect the recent decline in 10-year yield as well as some likelihood of a slower rise in yield over the next 12 months and broader market volatility," wrote the MNST)+(NYSE:STZ)+(NYSE:PF)/11822884.html" target="_blank">analyst team covering the sector in a note to investors.
- Top consumer staples picks from GS include Monster Beverage (MNST +0.4%), Constellation Brands (STZ +0.2%), Pinnacle Foods (PF +1.2%), and Post Holdings (POST +0.5%).
- Consumer staples ETFs: XLP, VDC, FXG, RHS, FSTA, PSL, PSCC.
Mon, Jun. 27, 11:16 AM
- The outperformance of low-P/E stocks that marked H1 is behind us, says RBC's Jonathan Golub, and it's time for the "Stable Growers" to re-asset leadership. He cautions about putting money to work too quickly though, noting the pullback so far has been limited.
- His list of Stable Growers (page 1, page 2): CHD, CL, CVS, K, MO, PEP, PG, PM, BCR, BDX, DGX, DVA, HSIC, JNJ, LH, MDT, SYK, TMO, UNH, ZBH, AFL, AON, MMC, TMK, CTAS, DHR, HON, ITW, LMT, MMM, NLSN, RSG, RTN, UPS, VRSK, WM, XYL, CMCSA, MCD, OMC, ADP, APH, EMC, MA, T, VZ, ECL, PX
Mon, Jun. 13, 1:24 PM
Thu, May 19, 10:48 AM
- Church & Dwight (NYSE:CHD) says it's not engaged in talks with any party over a takeover bid or sale of one its units.
- The company adds that it hasn't even received any communication over a potential bid.
- Investors still seem unconvinced that there isn't something going on. CHD is still up 8.34% on the day after setting an all-time high earlier.
Thu, May 19, 9:18 AM
Thu, May 19, 8:56 AM
- Sterne Agee analyst April Scee says it makes more sense that Reckitt Benckiser (OTCPK:RBGLY, OTCPK:RBGPF) will make an offer for Church & Dwight (NYSE:CHD) than Procter & Gamble (NYSE:PG).
- Though the P&G buyout speculation that drove Church & Dwight to a +20% premarket spike yesterday fizzled, there's still some leftover M&A intrigue around the company due to its strong presence in the U.S.
- CHD +6.73% premarket to $103.51. For its part, Procter & Gamble is down 3% over the last few sessions with more retailers reporting tepid U.S. demand for consumer products.
Wed, May 18, 9:25 AM
- Shares of Church & Dwight (NYSE:CHD) are extremely active in the premarket session amid some talk that Procter & Gamble is interesting in acquiring the company.
- The speculation appears to have been kicked off on a Spanish news site, but is already losing steam rapidly.
- CHD which was up more 25% for a few trades is now +3.57%.
Tue, May 17, 3:02 AM
- The U.S. Supreme Court has backed out of a divisive clash involving religious groups that object to mandatory contraceptive coverage under Obamacare, issuing a compromise that said the two sides might be able to work out their differences.
- With four conservative justices and four liberals, the judges sent the case back to the lower courts, but suggested the government arrange coverage directly with health insurers rather than requiring employers to sign off on it.
- Related tickers: PFE, MRK, JNJ, TEVA, CHD, OTCPK:BAYRY
Thu, May 5, 10:20 AM
- Church & Dwight (CHD +1.7%) reports organic sales rose 5.2% in Q1 driven by volume growth of 5.6%.
- Consumer domestic sales grew 5.4% to $647.8M, comprised of 5.9% growth in household products and 4.6% growth in personal care products.
- Consumer international sales increased 5.8% to $127.4M.
- Specialty products division sales fell 4.6% to $73.8M.
- Gross margin rate improved 80 bps to 44.6%.
- SG&A expense rate increased 90 bps to 12.6%.
- Operating margin rate -10 bps to 21.1%.
- Q2 Guidance: Organic sales growth: ~+2% to +3%; Diluted EPS: $0.79.
- FY2016 Guidance: Organic sales growth: ~+3.0% to 4%; Gross margin rate: ~+75 bps; Market spending: ~12.3% of total sales; Operating margin rate: ~+50 bps; Adjusted EPS: +7.0% to +9.0%.
Thu, May 5, 7:04 AM
Wed, May 4, 5:30 PM
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