Is there a way to play the Baby Sector?
Here is a list of several companies which, to some degree, generate revenues from babies:
Target (NYSE:TGT), is the fifth largest retailer in the United States, the fifth largest retailer of music, and the largest seller of gift cards. For babies, it sells toys, clothing, health products and bedding. The stock has a price earnings to growth ratio of 19, a PEG of 1.17, and a yield of 0.9%. Wal-Mart (NYSE:WMT) is the largest toy seller in the world, and is the largest private sector employer in the world. It controls approximately 45% of the retail toy business in the United States. It also sells numerous products for babies. The stock has a P/E of 16.7, a PEG of 1.17, and a yield of 1.9%. Mattel's (NASDAQ:MAT) , is the world's largest toy company based on revenues. Its Fischer Price division makes Babygear Products, including baby monitors, booster seats, bouncers, car seats, high chairs, play yards, strollers, baby swings, tubs, and potties. It also sells various Disney (NYSE:DIS) Winnie the Pooh products, and various Sesame Street products. The stock has a P/E of 16.5, a PEG of 1.48, and a yield of 2.9%. Kimberly-Clark Corporation (NYSE:KMB), is the manufacturer and distributor of Huggies disposable diapers, along with other paper products, such a Cottonelle toilet paper, and Kleenex tissues. The stock has a P/E of 18.24, a PEG of 2.14, and a yield of 3.1%. Procter & Gamble Co. (NYSE:PG) sells Pampers, the most popular brand of disposable diaper in the world, Dreft, a popular brand of baby laundry detergent, Luvs, a budget brand of disposable diapers, and numerous other personal care products. The stock has a P/E of 21.13, a PEG of 1.61, and a yield of 2.2%. Nestlé (OTCPK:NSRGY), the Swiss company, owns Gerber Products Company, which is a major producer of baby food. As the manufacturer of Good Start, it is also the largest producer of baby formula in the world. Bristol-Myers Squibb (NYSE:BMY), is one of the Top 100 companies for working mothers according to Working Mother Media. Its division, Mead Johnson, manufactures Enfamil baby formulas, as well as Tri-Vi-Sol and ConvaTec infant vitamin supplements. BMY also makes numerous other pharmaceuticals and health care products. The stock has a P/E of 35.58, a PEG of 1.46, and a yield of 4%. Abbott Laboratories' (NYSE:ABT) division, Ross Pediatrics, makes Similac-LF (lactose free), Similac Advance, Isomil Advance and NeoSure Advance infant formulas. Abbott also makes numerous other health care products, and pharmaceuticals. The stock has a P/E of 43.35, a PEG of 1.63, and a yield of 2.4%. Wyeth (WYE) makes Prevenar, the first and only pneumococcal conjugate vaccine for infants, and one of Wyeth's top revenue producers. It also has various brands of infant formulas, along with various types of pharmaceutical products. The stock has a P/E of 14.23, a PEG of 1.9, and a yield of 2.1%. Johnson & Johnson (NYSE:JNJ) is well known for its JOHNSON'S Baby products division. J&J owns the Baby.com, and the BabyCenter.com websites. It also makes AVEENO Baby wash and cream, Johnson's Baby Bath, Baby Wash, and Baby Bar, NO MORE RASH™ Diaper Rash Cream, Johnson's Baby Lotion, Baby Oil, Baby Powder, and Baby Shampoo. It even makes a Baby Cologne! The stock has a P/E of 17.02, a PEG of 1.98, and a yield of 2.7%.
Disclosure: The author owns MAT and PG.