Vanguard Consumer Staples ETF

For fiscal 2016, Kroger reported total sales of $109.8 billion. It rose 1.3% from the previous year—the slowest sales growth since fiscal 2010.

Bunge North America, the North American operating segment of Bunge Limited (BG), announced that it had acquired Whole Harvest Foods.

Same-store sales growth came in at 1.5% in 3Q16 for Walmart US compared to 0.4% in 3Q15. Target’s (TGT) same-store sales grew 1.9% in 3Q16, driven by both higher traffic and transaction size.

In this part of the series, we’ll conduct a SWOT (strength, weakness, opportunity, and threat) analysis for The Fresh Market (TFM).

Due to high visibility in Altria Group’s (MO) earnings, we have opted for a forward PE (price-to-earnings) ratio for our analysis.

January’s higher-than-expected consumer price index generated worries that the Federal Reserve might start raising interest rates aggressively

The Conference Board LEI uses the level of new orders in the consumer goods and materials as an important constituent of the LEI.

As we’ve discussed, Walgreens Boots Alliance (WBA) reported its 1Q18 results on January 4. The company’s top line increased 7.9% YoY (year-over-year) to $30.74 billion.

Rite Aid (RAD) reported its 3Q17 results after the market closed on January 3. The company’s top line plunged 5.6% YoY (year-over-year) to $5.35 billion (excluding discontinued operations).

Manufacturers’ new orders for consumer goods and materials New orders for consumer goods and materials give investors an insight into the demand for goods and form an important constituent of the Conference Board LEI (Leading Economic Index). Changes to demand in the consumer goods sector impact the performance of FMCG (fast moving consumer goods) companies, which include large retailers such […]

The number of new orders for October increased from a downward revised September reading of 136,014 to 136,268.

According to the September manufacturing new orders report, the number of manufacturers’ new orders for consumer goods and materials continued to increase in September.

Consumer goods and materials The Conference Board LEI (Leading Economic Index) uses new orders for consumer goods and materials as an important constituent. New orders in any sector give an idea of demand trends. Increasing demand for goods increases production, wages, and the number of hours worked, which benefits the economy. This sector includes companies […]

Manufacturers’ new orders for consumer goods and materials New orders for the consumer goods and materials sectors, important leading indicators for any economy, are used for the Conference Board Leading Economic Index (or LEI). Investors in this sector need to observe changes in the number of new orders as they indicate future demand. An increase […]

2017 has been a tough year for Altria. The stock has fallen 5.8% since the beginning of 2017.

Manufacturers’ new orders are one of leading indicators in the Conference Board Leading Economic Index (or LEI).

Herbalife (HLF), a global nutrition and weight management company, has been having a strong run. HLF stock has risen about 19.0% YTD as of March 28, 2017.

Both beverage giants have recorded positive segment revenue, earnings, and cash flow, but PepsiCo has a better valuation than Coca-Cola.

Mead Johnson Nutrition revised its net sales outlook. It now expects constant-dollar sales to fall 0%–2% year-over-year in 2016.

Hershey (HSY) reported its fiscal 2Q16 earnings on July 28, 2016. Adjusted EPS came in around $0.85 for 2Q16, a growth of 9% compared to $0.78 in 2Q15.

Analysts expect Hershey’s adjusted EPS to be $0.78, which is in line with 2Q15 EPS.

Analysts are expecting Ingredion’s (INGR) adjusted EPS for 2Q16 to be $1.65 compared to $1.53 in 2Q15. That’s an increase of 8%.

Analysts are expecting Ingredion’s (INGR) revenue to be $1.4 billion for fiscal 2Q16. That would be a slight fall of 1% compared to $1.5 billion in the 2Q15.

Danone will be acquiring WhiteWave Foods for $56.25 per share in an all-cash transaction. This makes WWAV’s total enterprise value ~$12.5 billion.

Analysts expect ConAgra’s adjusted EPS to be $0.52 in fiscal 4Q16—compared to 4Q15 EPS of $0.59. It represents a decline of 12%.

The Coca-Cola Company (KO) has a market cap of $192.8 billion. It fell by 1.2% to close at $44.79 per share on June 17, 2016.

Cal-Maine Foods (CALM) has a market cap of $2.1 billion. It rose by 2.7% to close at $41.19 per share on June 16, 2016.

Manufacturing growth as measured by the ISM (Institute for Supply Management) index ended lower for the fifth consecutive month at the end of February. However, it rose in March

Whole Foods Market (WFM) is likely to see a slowdown in its top line during fiscal 2016. The organic and natural foods retailer could register sales growth of 3%–5%, according to the company’s guidance.

Archer Daniels Midland opened its new flavor creation, application, and customer service facility in Cranbury, New Jersey, to meet customers’ unique demands.

On March 23, 2016, General Mills reported its results for fiscal 3Q16, which ended on February 28, 2016. Earnings and sales declined YoY, and adjusted EPS fell by 7% to $0.65 compared to $0.70 in fiscal 3Q15.

Pinnacle Foods (PF) expects the adjusted diluted EPS (earnings per share) to be $2.08–$2.13. It includes the benefit of the Boulder Brands acquisition.

Compared with other food retail chains, The Fresh Market’s performance in terms of profitability has been best-in-class.

Whole Foods Market (WFM) has long reaped the benefits of changing customer preferences toward organic foods, with no real competition.

In this section, we’ll look at Walgreens Boots Alliance’s (WBA) current strengths and weaknesses.

Walgreen Boots Alliance’s (WBA) common stock trades on the NASDAQ under the symbol “WBA.”

Walgreens Boots Alliance (WBA) and CVS Health (CVS) largely dominate the US drug store market.

The Retail Pharmacy USA division is Walgreens Boots Alliance’s (WBA) largest revenue generator.

Under its Retail Pharmacy International division, Walgreens Boots Alliance operates pharmacy-led health and beauty retail businesses in eight countries.

A National Bureau of Economic Research study has found that the evolution and growth of warehouse clubs have been the most significant influences on the retail sector over the last 15-20 years.

Although Sprouts purchases from a large number of suppliers, the company is still dependent on these suppliers for a large part of their purchases.

Bunge Limited (BG) reported earnings of $86 million and $0.51 per share in 2Q15. The results fell badly as per analyst’s estimates of $1.43.

After a test run in October 2014, PepsiCo (PEP) has now extended its partnership with SodaStream (SODA) to expand in the home carbonation business. The share prices of SodaStream and PepsiCo rose by 6.4% and 0.6%, respectively, following the announcement on September 11.

PepsiCo’s strategy for its UK business involves continued investment in its core brands across snacks and beverages, including Walkers, Tropicana, Naked, Quaker, and Pepsi.

While Mondelēz has been upbeat on prospects for Emerging Markets, its growth has faced significant challenges lately. The higher US dollar has been a major headwind.

The new company, Coca-Cola European Partners PLC (or CCEP), would be based in the United Kindgom with CCE, CCIP, and The Coca-Cola Company (KO) holding 48%, 34%, and 18% of shares, respectively.

Americans are moving toward craft beer due to better taste, innovation, and brewing techniques. Its market share increased to 11% in 2014 from 7.8% in 2013.

Nationwide walkouts appear to be gaining momentum, calling for action to increase the federal minimum wage that has remained stagnant since 2009.

Investing in technology and capital to reduce costs as much as possible, including labor costs, has become critical.