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Short-interest bets in most consumer staple stocks fell in March as compared to the previous month. However, industry-wise, short-interest bets were higher for five out of seven industries.
Short interest, which could be an indicator of pessimism, calculates the number of shares sold against the company float. (Short Interest % = Number of Shares Sold Short ÷ Stock Float)
Market cap-wise, Walmart (WMT), Procter & Gamble (PG), Costco (COST), and Coca-Cola (KO) are among the largest consumer staple stocks in the S&P 500 (SP500) and have short interest of 0.46%, 0.72%, 1.44%, and 0.62%, respectively.
Short interest was highest for Campbell Soup (CPB), Walgreens Boots Alliance (WBA), Molson Coors Beverage (TAP), and Kellanova (K) with short interest of 8.74%, 4.95%, 4.76%, and 4.57% respectively.
Least shorted shares were Procter & Gamble (PG), Coca-Cola (KO), Philip Morris (PM), and Walmart (WMT) with a short interest of 0.72%, 0.62%, 0.47%, and 0.46%, respectively.
Industry Analysis:
In the consumer defensive/staples sector, Food Products remain the most shorted industry with 2.46% short interest, while the Beverages industry had the least short interest of 1.09% during March.
Average short interest across S&P 500 consumer defensive stocks was 1.64% during March, up from 1.44% at the end of Feb.
Tobacco and Personal Care industry saw a considerable surge in short interest during March vs. last month.
The S&P500’s consumer staples sector (NYSEARCA:XLP) is up nearly 1.87% YTD, compared to a broader S&P 500 Index (SP500) gain of 7.4%.