Wed, Jul. 13, 5:18 PM
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, Jul. 11, 2:12 PM
- A bill requiring food companies to label GMO ingredients was approved by the U.S. Senate by a 63 to 30 vote and now heads to the House of Representatives.
- The negotiated bill requires food companies to label genetically modified food by a phrase, symbol on the package, or a bar code that can be scanned by smartphones.
- The Department of agriculture still has two years to write the precise labeling rules if the House approves the bill.
- The passage of the bill is seen as a positive for the food sector as the alternative of having to adhere to state-by-state rules could create operational chaos for national sellers.
- Food stocks: SENEA, SENEB, THS, OTCPK:NCRA, CPB, MDLZ, GIS, OTCPK:NSRGY, FLO, CAG, DF, SJM,DF, ANFI, JJSF, WWAV, UL, OTCQX:DANOY, OTCPK:PLATF, POST, K, PEP, DMND, PF, HAIN, KO, BETR, KHC, WILC, PPC, PF, LWAY, HRL, TSN, DTEA, SAFM, BRID.
Fri, Jun. 17, 3:07 PM
- Susquehanna issued a detailed report on IRI scanner data trends in the food and beverage industry.
- The investment firm noted that soda drink volume fell 2.8% Y/Y for the 12-week period ending on June 5. PepsiCo (NYSE:PEP) volume was down 5%, compared to 1.3% decline for Coca-Cola KO and 1.9% fall-off for Dr. Pepper Snapple (NYSE:DPS).
- K-cup revenue was up 8% for the 12 weeks as J.M. Smucker (NYSE:SJM). Starbucks (NASDAQ:SBUX), and Dunkin' Brands (NASDAQ:DNKN) all showed strong volume amid ongoing pricing pressure. K-cup sales decelerated for Kraft Heinz (NASDAQ:KHC) and could turn negative if pricing pressure sustains.
- In the yogurt category, scanner data over four weeks confirmed that General Mills (NYSE:GIS) is losing market share to Chobani and Danone (OTCQX:DANOY). Susquehanna tips that Chobani may be prepping for a sale.
- General Mills beat out Kellogg (NYSE:K) in the cereal category as its 12-week sales growth of +2.3% easily topped Kellogg's 2.2% decline.
- Pricing with beer is helping to make up for continued volume pressure. Across the sector, pricing was recorded as 2.5% higher for the 12 weeks of data.
- Beer volume: Anheuser-Busch InBev (NYSE:BUD) -1.8%, MillerCoors (OTCPK:SBMRY, TAP) -2.7%, Boston Beer (NYSE:SAM) -2.1%.
- Susquehann'a Pablo Zuniac put together the deep dive into the scanned data.
- Within the F&B sector, he has BUD, THS, WWAV, TAP, and KHC rated at Positive.
Wed, Jun. 15, 10:45 AM
- The cancer agency of the World Health Organization issues a detailed report in which it concludes that drinking coffee doesn't increase the risk of cancer.
- The experts did determine that drinking "very hot" beverages is one probable cause of oesophagus cancer in humans.
- Very hot was defined as 65 degrees Celsius or 149 degrees Fahrenheit. Coffee from some chains is served over that temperature if consumed immediately without any cream added.
- WHO report (.pdf)
- Previously: Coffee to rid itself of 'possible carcinogen' status (June 15)
- Related tickers: SBUX, DNKN, SJM, QSR, MCD, MDLZ, KKD, WWAV, JVA, OTCQB:JAMN, OTCQB:BCCI, FARM, OTCPK:NSRGY.
- ETFs: JO, CAFE.
Wed, Jun. 15, 2:26 AM
- Twenty-five years after classifying coffee as a possible carcinogen leading to bladder cancer, the World Health Organization has reversed course, and is expected to say today that coffee isn't classifiable as a carcinogen.
- WHO is also likely to state coffee has no carcinogenic effects related to other cancers and has even been seen to reduce the risk of liver and uterine cancers.
- Related tickers: SBUX, DNKN, SJM, QSR, MCD, MDLZ, KKD, WWAV, JVA, OTCQB:JAMN, OTCQB:BCCI, FARM, OTCPK:NSRGY
- ETFs: JO, CAFE
Thu, Jun. 9, 7:23 AM
- J.M. Smucker (NYSE:SJM) reports net sales rose 25% in FQ4 reflecting the contribution of Big Heart Pet Brands and growth within the U.S. retail coffee segment.
- Excluding acquisitions and foreign currency exchange net sales expanded 5%.
- Revenue by segment: U.S. Retail Coffee: $512.6M (+9%); U.S. Retail Consumer Foods: $473.7M (-2%); U.S. Retail Pet Foods: $562.9M; International and Foodservice: $258.4M (-1%).
- Adjusted gross margin rate improved 590 bps to 37.7%.
- Total SD&A expenses rate fell 40 bps to 19.5%.
- Adjusted operating margin rate grew 590 bps to 15.5%.
- EBITDA margin was 19.8% vs -1.5% in 4Q15.
- FY2017 Guidance: Net sales: -1% Y/Y; Diluted EPS: $5.85 to $6; Adjusted non-GAAP EPS: $7.60 - $7.75; Tax rate: 34%; Free cash flow: $1B; Capex: $240M.
Thu, Jun. 9, 7:02 AM
Wed, Jun. 8, 5:30 PM
Wed, May 25, 10:39 AM
- A price cut by J.M. Smucker (SJM +0.4%) on packaged coffee has more to do with competition from private-label grocery store brands than green coffee costs, according to analysts.
- "Coffee brands are seeking market share versus holding prices," notes Rabobank's Ross Colbert.
- Kroger (NYSE:KR), Safeway (NYSE:ABS), and Costco (NASDAQ:COST) are all aggressively selling their private-label brands in stores.
- J.M. Smucker sells coffee under the Folgers and Dunkin Donuts' brand names.
Tue, May 24, 8:13 AM
Fri, May 13, 6:25 PM
- Third Point's 13F filing shows it took new positions in EMC (EMC, 7M shares), Google (GOOGL, 700K shares) and Baxalta (BXLT, 6M shares) while selling out of eBay (EBAY, 4M shares), and Morgan Stanley (MS, 3M shares).
- Like Appaloosa, the firm also took a new stake in Twenty-First Century Fox (FOXA, for 1.45M shares).
- Third Point trimmed its stake in Amgen (NASDAQ:AMGN) by two-thirds, selling 6.04M shares, and cut its holdings in J M Smucker (NYSE:SJM) by 875,000. It did boost holdings in Yum Brands (NYSE:YUM) with 5.4M additional shares, as well as 1.5M in calls.
Fri, Apr. 29, 3:03 PM
- Low volatility stocks are besting the broader averages this year, with the SPLV up 3% and the USMV up 4% vs. the 0.7% advance for the S&P 500.
- While the consumer staples that make up much of the low vol names are expected to do well in the rocky times seen in 2016, at 21x earnings, they're getting pricey.
- Picking through individual names though, Barclays' Jonathan Glionna has come up with a list of low volatility names which can still be deemed not expensive.
- In consumer staples: AutoZone (NYSE:AZO), Darden (NYSE:DRI), Time Warner Cable (NYSE:TWC), Clorox (NYSE:CLX), Coca-Cola (NYSE:KO), CVS, Hormel (NYSE:HRL), J.M. Smucker (NYSE:SJM).
- In utilities: Entergy (NYSE:ETR), PG&E (NYSE:PCG), PPL.
Fri, Apr. 22, 5:21 PM
Mon, Apr. 4, 8:57 AM
- Goldman Sachs lowers its rating on J.M. Smucker (NYSE:SJM) to Sell from Neutral on concerns over the ability of the company to match consensus earnings estimates.
- The investment firm sets a price target of $120 on the food stock.
- Shares of SJM are flat in premarket trading.
- Now read Are There Any Deals Still To Be Had Among Dividend Growth Stocks?
Thu, Mar. 10, 9:54 AM
- RBC Capital lifts its price targets on two consumer staples heavyweights.
- Coca-Cola (KO +0.6%) is assigned a fresh of $51. KO is +4.5% YTD to $44.90. Shares yield 3.11%.
- Reynolds American (RAI +1.4%) earns a PT of $57. RAI is +12.8% YTD to $52.14. Shares yield 3.22%.
- There's been some debate that the run of consumer staples stocks is poised to end, but SA contributor Daryl Montgomery argues the sector is still a safe play on a technical view.
- Earlier this week, Evercore ISI's Rick Ross also came in positive on the sector (CNBC video).
- "You probably can't do much better than owning the staples on this breakout from a multiyear trading range ... against the backdrop of a world where yields are extremely low,"said Ross
- Related stocks: PM, PG, PEP, CL, ADM, KMB, STZ, DPS, SJM, HRL, CHD, TSN, HSY, CPB, [[BF.]], BF.B.
- Related ETFs: XLP, VDC, FXG, RHS, FSTA, PSL, PSCC.
The J. M. Smucker Co. engages in the production and market of fruit spreads, peanut butter and other food products. The company operates through the following segments: U. S. Retail Coffee, U. S. Retail Consumer Foods and International, Foodservice & Natural Foods. The U. S. Retail Coffee... More
Sector: Consumer Goods
Industry: Processed & Packaged Goods
Country: United States
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