Consumer Staples Select Sector SPDR® ETF

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 […]

As of December 22, 2017, Tyson Foods (TSN) stock was trading at a 12-month forward PE (price-to-earnings) multiple of 13.9x, which could seem attractive to investors.

As of November 24, 2017, Colgate-Palmolive (CL) stock was trading at a forward PE multiple of 24.0x, which is higher than its peers.

As per the latest JOLTS report, about 3.2 million American workers quit their jobs voluntarily in September.

Across the five moat sources (network effect, intangible assets, cost advantage, switching costs, and efficient scale), efficient scale is the most likely to drive a “narrow moat” rating from Morningstar.

The US is Walgreens’ largest market and accounts for more than 70% of its total sales and operating income.

Renewed tensions arising out of North Korea’s missile launch on Tuesday had a major impact on volatility. Asian markets have declined more than 1% as risk aversion dominated markets.

Some companies benefit in times of uncertainty, and some sectors provide cover for investors.

In this environment, green bonds could offer investors an option to hedge their portfolios against climate-related risk and enjoy a good risk-return profile.

GDP growth has explained 30% of returns in the consumer discretionary sector in the last ten years. This compares to only 20% for the consumer staples sector.

The cyclical sector has a sizeable correlation with the different phases of the business cycle.

Archer Daniels Midland’s management mentioned that the WILD Flavors and Specialty Ingredients’ results were in line with the same quarter last year.

Archer Daniels Midland (ADM) has a market cap of $25.7 billion. It rose by 1.1% to close at $43.93 per share on August 3, 2016.

The company expects that the barkTHINS acquisition will be dilutive in 2016 and 2017, before turning accretive in 2018.

Archer-Daniels Midland (ADM) has a market cap of $25.2 billion. It fell by 0.21% to close at $43.39 per share on July 20, 2016.

A hike in interest rates increases the cost of borrowing for companies. Most publicly traded companies carry at least some debt to fund their operations, and higher borrowing costs can cause their profit margins to contract.

Coca-Cola’s Venturing & Emerging Brands unit has acquired a minority stake in the certified organic, non-GMO, and gluten-free drink Aloe Gloe.

We’ve moved from a phase in the business cycle where defensive stocks do well to the phase where utilities outperform.

Style investing involves selecting a particular asset class that should outperform during a business cycle phase and positioning your portfolio accordingly.

Core inflation could impact the market positively as well as negatively. Higher core inflation data will depreciate the US dollar (UUP).

Kraft Heinz had a coverage ratio of 0.87x at the end of 3Q15, whereas McCormick & Company and Mondelēz had coverage ratios of 10.2x and 56.1x, respectively.

Kraft Heinz is shifting its focus on advertising spending from non-working media to working media.

Kraft Heinz plans to reinvest savings from cost initiatives into its brands and to refocus its strategic vision on innovation.

The US accounted for 67% of Kraft Heinz’s fiscal 2014 pro forma sales, with Canada and Europe each contributing 10% of total sales.

In early 2015, Berkshire Hathaway and 3G Capital designed the Kraft-Heinz merger by pairing the Kraft Foods Group with H. J. Heinz Company.

Keurig Green Mountain (GMCR) has been facing struggles in the coffee market (XLP), as Keurig’s patent for K-Cup pods, the single-serve coffee containers, expired in September 2012.

Walmart (WMT) is a mass merchandiser. It’s the world’s largest retailer. It has over 11,100 stores in ~27 countries. It has a market cap of over $275 billion.

Due to Clorox’s diverse product portfolio and the competitive nature of the consumer products market, it’s difficult for a new company to compete with similar products.oducts.

With 433 stores across the US, Canada, and the UK as of September 2015, Whole Foods has long been considered a synonym for organic and healthy food.

Hershey had a total debt of $2.4 billion on its balance sheet in 2014. It had a total debt-to-equity ratio of 195% during the same period.

Efficient supply chain management is vital to a retailers’ day-to-day operations. A good distribution network optimizes product freshness, reduces waste, and lowers costs.

Hershey’s international segment contributes only ~30% of total revenues. Its goal is to increase international revenues to ~50% of total revenues by 2018.

Along with advertising, Hershey is focusing on cross-merchandising complimentary products like beverages and snacks, which should help expand consumption.

In 2010, Hershey announced Project Next Century, which aims to streamline its global supply chain operations and create a more competitive cost structure.

Hershey applies a micro-marketing concept to its businesses, which means that it markets certain products to small target audiences.

Kroger operates in several store formats, offering its customers the option to shop in its stores in-person or online for delivery or pickup.

In its international business, Hershey is mainly focusing in emerging markets of Mexico, Brazil, India, and China.

Hershey is a leading player in the confectionery industry, which grew globally at a CAGR of 4.9% from 2009–2014, reaching $198.4 billion in 2014.

ABI is a leading company in the consumer staples sector. It has had a strong record of integrating acquisitions and delivering synergies ahead of target.

P&G plans to focus on stronger, consumer meaningful brands—brands with which P&G has the leading market position—and accordingly chooses its portfolio.

Colgate faces stiff competition from large international and local players worldwide. However, the company aims to have a disciplined approach to pricing management.

Altria’s subsidiary Ste. Michelle is a leading producer of Washington state wines. It owns wineries and distributes wines in several regions and countries.

Estée Lauder’s management aims to generate at least 1% of its total sales growth through acquisitions over the next three years.

Incorporated in Virginia in 1987, Philip Morris is a leading tobacco company whose revenue in 2014 was ~$80 billion—$29.8 billion after excise taxes.

The abundance of counterfeit goods and accessories is adversely affecting the sales of Estée Lauder’s products. This also hurts EL’s brand image.

Cocoa bean production is being pushed to fulfill the current demand. A major reason for the decline in cocoa supply is the unproductive mature cocoa trees in West Africa.

Economic growth can be considered among the most crucial indicators that are released. It indicates the growth in economic output.

Colgate’s stock price has always been fairly stable primarily due to its oral care business.

As the consumer staples (XLP) sector is highly competitive, Colgate faces local as well as global competition from various local and international players worldwide.

Procter & Gamble aims to harness opportunities in developing countries like China, India, and Russia to enhance its market share as well as stabilize its top-line growth.