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Citi Research analysts shared their top 6 buy-rated stocks and their top 5 sell-rated stocks within consumer staples (NYSEARCA:XLP).
All industries -- consumer staples distribution and retail, food, beverage and tobacco, and household and personal products -- within the consumer staples sector (XLP) are rated market weight by Citi analysts.
Analyst Scott Chronert wrote that year-to-date, the sector’s underperformance has “rightsized” the valuation compared to its fundamental set up. The sector is raised from underweight.
Here are the top buy-rated stocks, measured by expected total return (or ETR):
- The Simply Good Foods Co. (SMPL) - ETR: 36%
- Mondelez International Inc. (MDLZ) - ETR: 27%
- Lamb Weston Holdings Inc. (LW) - ETR: 25%
- The J M Smucker Co. (SJM) - ETR: 24%
- Dollar Tree Inc. (DLTR) - ETR: 23%
- The Kraft Heinz Co. (KHC) - ETR: 22%
These are the top sell-rated stocks:
- Church & Dwight Co. Inc. (CHD) - ETR: -13%
- Kimberly-Clark Corp. (KMB) - ETR: -9%
- McCormick & Co Inc. (MKC) - ETR: -8%
- Campbell Soup Co. (CPB) - ETR: -4%
- Brown-Forman Corp. (BF.B) - ETR: 2%
More on Consumer Staples Select Sector SPDR ETF:
- XLP: Rotate Into This Lagging Sector
- KR and TGT top consumer staple gainers in Q1, while ADM and BF.B top losers
- Campbell Soup most shorted consumer staple stock; Coca-Cola least shorted during Feb end
- Seeking Alpha’s Quant Rating on Consumer Staples Select Sector SPDR ETF
- Dividend scorecard for Consumer Staples Select Sector SPDR ETF