|Bid||62.67 x 45100|
|Ask||62.93 x 39400|
|Day's Range||62.29 - 62.88|
|52 Week Range||48.33 - 63.02|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||25.98%|
|Beta (5Y Monthly)||0.62|
|Expense Ratio (net)||0.13%|
The Consumer Staples Select SPDR (NYSEArca: XLP) is staving off trade war news and hitting new highs, which could have consumer staples riding alongside its wave with strength in defensive equities over ...
Shares of Campbell Soup Co. swung to a gain of 1.3% in midday trading Tuesday, after the soups, simple meals and snacks company reported fiscal first-quarter profit that topped expectations, although sales that fell short. The gains reverse a premarket loss of as much as 2.5% right after the release of results. Net income for the quarter to Oct. 27 fell to $166 million, or 55 cents a share, from $194 million, or 64 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share came 78 cents, above the FactSet consensus of 71 cents. Net sales slipped 0.9% to $2.18 billion from $2.20 billion, to miss the FactSet consensus of $2.19 billion. Meals and beverages sales fell 3% to miss the FactSet consensus of $1.22 billion, while snack sales rose 2% to $989 million to beat expectations of $968.7 million. "Strong in-market consumption on U.S. soup was offset by the timing of shipments related to the Thanksgiving holiday," said Chief Executive Mark Clouse. For fiscal 2020, the company lowered its sales growth guidance to down 1% to up 1% from up 1% to up 3%, to reflect the sale of the European chips business in October, but affirmed its adjusted EPS estimate of $2.50 to $2.55. The stock has run up 46.1% year to date, while the SPDR Consumer Staples Select Sector ETF has rallied 22.7% and the S&P 500 has gained 24.2%.
The month of October saw a tepid rebound in U.S. retail sales. Though this indicates a somewhat shaky start to holiday season buying, these ETFs should sill benefit.
These certainly are exciting times on Wall Street.Source: Shutterstock The S&P 500 hit another all-time, intra-day high on Tuesday, and it looks like it might be gearing up to do it again either today or sometime later this week.Perhaps the best part about this latest bullish run is how bought-in everyone on Wall Street seems to be.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSometimes the major stock indexes -- like the S&P 500 or the Dow Jones Industrial Average -- can be pushed higher by the strong performance of just a few stocks. That doesn't seem to be the case this time though.This move seems to be powered by a broad bullish consensus building among traders.How do we know?Two of our favorite relative-strength charts are telling us so. XLY/XLP Relative-Strength ChartOne of our favorite indicators to gauge whether we are in an expansion phase or a contraction phase is the comparison of the two consumer-based stock sectors: consumer discretionary and consumer staples. * 10 Cheap Stocks to Buy Under $10 Consumer discretionary stocks represent companies like Amazon (NASDAQ:AMZN), Home Depot (NYSE:HD) and McDonald's (NYSE:MCD), which tend to do better when consumers have extra money to spend and enough confidence in their economic future to spend it.Consumer staples stocks represent companies like Procter & Gamble (NSYE:PG), Coca-Cola (NYSE:KO) and Walmart (NYSE:WMT), which tend to do well even during economic downturns because people tend to continue buying shampoo, Coke and general supplies when the economy stinks.You can see in the chart above which stock sectors tend to outperform during various stages of the business cycle. Consumer discretionary and consumer staples are at opposite ends of the cycle. Sector Rotation During the Business CycleConsumer discretionary stocks typically start to outperform near the bottom of the business cycle. This is when the economy is shifting from its contraction to its expansion phase. Consumer staples stocks typically start to outperform near the top of the business cycle. At the top of the cycle is when the economy is shifting from its expansion phase to its contraction phase.By comparing these two stock sectors, we can see whether Wall Street is preparing for continued expansion or continued contraction.When consumer discretionary stocks are taking the lead, we can be increasingly confident that traders believe both the economy and the stock market are doing well. When consumer staples stocks are taking the lead, we can be increasingly confident that traders believe both the economy and the stock market are doing poorly.You can easily compare the performance of these two sectors by creating a relative-strength chart of the Consumer Discretionary Select Sector SPDR Fund (NYSEARCA:XLY) and the Consumer Staples Select Sector SPDR Fund (NYSEARCA:XLP), where XLY is the first exchange-traded fund in the pairing and XLP is the second (XLY/XLP).When the XLY/XLP relative-strength chart is moving higher, it tells you that XLY is outperforming XLP, and the S&P 500 is likely doing well. Conversely, when the XLY/XLP relative-strength chart is moving lower, it tells you that XLY is underperforming XLP, and the S&P 500 is likely feeling some bearish pressure.The comparison of the XLY/XLP relative-strength chart and the S&P 500 Index (SPX) chart in the figure below shows that the S&P 500 chart typically moves lower with the XLY/XLP chart. XLY/XLP Compared to the S&P 500 (SPX)Source: TradingViewThe S&P 500 doesn't always move in lockstep with the XLY/XLP chart, but seeing the XLY/XLP start to move lower can be a good indication that the S&P 500 might start moving lower.Right now, the XLY/XLP chart is finally starting to form some higher lows (see the green arrow). This tells us that trader sentiment is becoming more bullish.Look for the XLY/XLP chart to start forming higher highs in the next few months to go along with its higher lows. VIX Relative-Strength ChartMost traders tend to focus on the CBOE Volatility Index (VIX) when they think about measuring trader sentiment. The VIX is a measurement of the anticipated volatility being priced into S&P 500 options for the next 30 days.However, sometimes focusing only on the next 30 days isn't a long enough view. Sometimes it is helpful to expand your horizons out to the next three months, or 90 days. When traders need a longer-term outlook, they can look at the CBOE S&P 500 3-Month Volatility Index (VIX3M), which is a measurement of the anticipated volatility being priced into S&P 500 options for a three-month time frame.By comparing the value of the VIX to the value of the VIX3M, you can identify periods when trader sentiment has turned extremely bearish and when it has normalized.The value of the VIX3M is usually higher than the value of the VIX. That's because it measures the magnitude of the price movement traders believe the S&P 500 may make for a longer time period. After all, if you give the market three months to make a move, it has a greater chance of making a larger move.Interestingly, there are times when traders will price in a greater chance of a larger move in the short term. Usually, this happens because they are nervous the market is about to drop, and that fear pushes the value of the VIX up higher than the value of the VIX3M. VIX/VIX3M Compared to the S&P 500 (SPX)Source: TradingViewThe easiest way to compare the value of the VIX to the value of the VIX3M is to create a relative-strength chart. Start by dividing the value of the VIX by the value of the VIX3M.Typically, the VIX/VIX3M relative-strength chart will have a value less than 1, because the value of the VIX is usually less than the value of the VIX3M.During periods of high market stress, the VIX/VIX3M relative- strength chart will often have a value greater than 1. That's because traders are pushing the value of the VIX higher than the value of the VIX3M.So, where is the VIX/VIX3M now?According to the figure above, the VIX/VIX3M is at its lowest level since October 2018. As you can see in the comparison of the VIX/VIX3M relative-strength chart and the S&P 500 (SPX) chart, the VIX/VIX3M typically moves higher when the S&P 500 moves lower and vice versa.So, the fact that the VIX/VIX3M is at a 52-week low tells us trader sentiment is extremely bullish. The Bottom LineAt the moment, the only thing that looks like it could potentially derail the bullish market sentiment we are experiencing on Wall Street right now is a collapse of the trade talks between the United States and China.Traders appear quite comfortable with everything else that is happening -- the impeachment proceedings, earnings, interest rates and so on.John Jagerson & Wade Hansen are just two guys with a passion for helping investors gain confidence -- and make bigger profits with options. In just 15 months, John & Wade achieved an amazing feat: 100 straight winners -- making money on every single trade. If that sounds like a good strategy, go here to find out how they did it. John & Wade do not own the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Stocks to Buy Under $10 * These 10 Stocks to Buy Make the Perfect 'Retirement' Portfolio * 5 Streaming Stocks to Buy for Huge Upside Over the Next Decade The post How to Confirm Bullish Sentiment With Relative-Strength Charts appeared first on InvestorPlace.
Although it's true to that people have to eat, that notion doesn't always make for the most valid investment thesis. Still, the Consumer Staples Select Sector SPDR (NYSEARCA:XLP), the largest exchange traded fund (ETF) dedicated to that sector, is higher by nearly 21% year-to-date.Traditional consumer staples ETFs like XLP are diverse in the ways of this sector. These funds are not dedicated food ETFs. Rather, they combine exposure to food and beverage stocks, such as Coca-Cola (NYSE:KO) along with consumer products giants like Procter & Gamble (NYSE:PG).Industry-level diversity usually works for investors, but when it comes to food ETFs, the hunt looks a little bit like the one for restaurant ETFs. The need for nourishment and demand for dining would seem to imply that there are plenty of related funds, but the opposite is actually true.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy in November However, there are few credible, solid ideas for investors to put some grub on the table and in the bank with the following food ETFs. Invesco Dynamic Food & Beverage ETF (PBJ)Source: suriyachan / Shutterstock.com Expense ratio: 0.63%The Invesco Dynamic Food & Beverage ETF (NYSEARCA:PBJ) is one of the oldest dedicated food and beverage ETFs having debuted over 14 years ago. PBJ also epitomizes the search for food ETFs in that it includes an "and." That's usually the case as fund issuers figure it's more efficient to mix food and drink together under the umbrella of single ETF.PBJ follows the Dynamic Food & Beverage Intellidex Index, which is a different animal than the benchmarks used by many prosaic consumer staples ETFs. This food ETF's index "is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value," according to Invesco.While PBJ holds food and beverage basics such as Coca-Cola and PepsiCo (NASDAQ:PEP), the fund allocates nearly a quarter of its weight to consumer discretionary stocks, including McDonald's (NYSE:MCD) and Starbucks (NASDAQ:SBUX). That gives PBJ the ability, in the right consumer environment, to potentially outperform traditional staples ETFs.Bottom line: this food ETF offers investors a bit more spice than they'll find with the XLP's of the world. First Trust Nasdaq Food & Beverage ETF (FTXG)Source: designs by Jack / Shutterstock.com Expense ratio: 0.60%The First Trust Nasdaq Food & Beverage ETF (NASDAQ:FTXG) represents another smart beta approach to food ETFs. This First Trust food ETF, which is just over three years old, follows the Nasdaq US Smart Food & Beverage Index.That index pulls 30 stocks from a broader Nasdaq benchmark and scores those names based on trailing 12-month volatility, value as measured by price-to-cash flow and growth using a combination of three-, six-, nine- and 12-month price appreciation.As far as food ETFs go, FTXG is one of the more pure names out there as it allocates almost 80% of its weight to stocks classified as food product names, according to issuer data. * 7 Safe Dividend Stocks for Investors to Buy Right Now For as unique as its weighting methodology is, FTXG's 28-stock roster looks traditional with names such as Pepsi, Kellogg (NYSE:K), General Mills (NYSE:GIS) and Coca-Cola, among others. The Organics ETF (ORG)Source: Shutterstock Expense ratio: 0.35%Often overlooked in the food ETF conversation, the Organics ETF (NASDAQ:ORG), as its name implies, is a play on healthy eating trends. ORG tracks the Solactive Organics Index."ORG includes global companies that capitalize on the growth in naturally-derived food and personal care items, such as companies that service, produce, distribute, market or sell organic food, beverage, cosmetics, supplements, or packaging," according to ETF Trends.While over 86% of ORG's weight is allocated to food makers and retailers, giving this fund serious food ETF credibility, there's some concentration risk to consider as its top three holdings combine for nearly a third of the fund's weight.In its favor, ORG is the least expensive of the food ETFs highlighted here.As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Buy-and-Hold Stocks to Play Investing's Biggest Trends * 7 Stocks to Buy in November * 5 Strong Buy Stocks Under $5 With Massive Upside Potential The post 3 Food ETFs to Load Your Plate With appeared first on InvestorPlace.
Shares of Altria Group Inc. rose 1.6% in premarket trading Thursday, after the smoking products seller beat third-quarter adjusted profit and revenue expectations, but announced a $4.5 billion write-down of its investment in Juul. The company swung to a net loss of $2.60 billion, or $1.39 a share, from net income of $1.94 billion, or $1.03 a share, in the same period a year ago. Excluding one-time items, such as the Juul write-down, adjusted EPS was $1.19, above the FactSet consensus of $1.15. Net revenue rose 0.3% to $6.86 billion, topping the FactSet consensus of $6.79 billion. Smokeable products shipments fell 6.5% to 28.16 billion units, as cigarette shipments fell 6.6% to 27.73 billion and cigars rose 4.1% to 428 million. Regarding the Juul write-down, Altria said that while there was no single determinative event or factor, it considered impairment indicators including the increased likelihood of U.S. Food and Drug Administration action to remove flavored e-vapor products from the market and various e-vapor bans put in place by certain cities and states. Altria said it expects 2019 adjusted EPS of $4.19 to $4.27, compared with the FactSet consensus of $4.20. The stock has lost 6.9% year to date through Wednesday, while the SPDR Consumer Staples Select Sector ETF has rallied 20.6% and the S&P 500 has climbed 21.5%.
In a sign that investors see more upside for the business cycle, fund flows for October show money flowing out of sectors that do better in downturns for those that benefit from an expanding economy.
While U.S. markets are hovering near record highs, high net-worth investors are wary of what the future may hold and are getting more defensive. ETF investors can also shift their portfolios into a more defensive posture through sector-specific strategies.
As the market gets crazy, boring tends to beat exciting as investors rush to safety. And you can't get more boring than ranch dressing, toilet paper and toothpaste. It's the reason why consumer staples stocks have been on fire over the last year. As political turmoil, slowing growth and other issues have made for a volatile market, many investors have found solace in consumer staples stocks. After all, people still need to brush their teeth and eat even if the economy is trending lower.To that end, the Consumer Staples Select Sector SPDR (NYSEARCA:XLP) has had a banner year -- returning more than 20% year-to-date. And some individual consumer staples stocks have done even better than the benchmark exchange-traded fund.Perhaps the best part is, as the uncertainty continues to grow, consumer staples stocks have even more appeal for investors. For one thing, many consumer stocks fit the definition of "quality" and have strong stable earnings. Secondly, they tend to be dividend-paying stocks and those dividends can provide a nice cushion during periods of market malaise.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs a result, many consumer staples stocks are perfect for retirees or conservative investors. So, which consumer stocks make sense today? Here are three that should find a home in your conservative portfolio. Consumer Staples Stocks To Buy: PepsiCo (PEP)Source: suriyachan / Shutterstock.com Dividend Yield: 2.8%One of the best things about consumer staples stocks is that the top leaders really don't need any introductions. And that's what we have with PepsiCo (NASDAQ:PEP). The soft drink and snack-food giant is as American as apple pie with its products finding its way in our fridges and kitchen cupboards. With some of the biggest brands under its umbrella -- such as Mountain Dew, Cheetos and Doritos -- PEP has become a cash flow and profit machine over the years. Last quarter alone, PepsiCo managed to see sales grow by over 4.3% and management is looking to score 4%-6% organic growth over the full year.The reason why PEP has been able to keep that growth coming comes down to its evolving product mix.The firm has been smart in its strategy to move with the times. Sugary sodas are out as consumers have switched to more natural and healthy snacks. For PEP, that's meant a shift towards teas, juices and other healthy snack foods. Key acquisitions of Sabra Hummus and Stacy's Pita Chips brands are just some examples. Additionally, PEP has found great success with sparkling water. Its Bubbly brand continues to win over consumers -- and the best part is that sparkling water comes with very high margins.PEP should be able to boost the growth even further. As it hooks millennials with its healthy and organic snacks, it's courting their children as well. According to Piper Jaffray's latest "Taking Stock With Teens" survey, Gen Z overwhelmingly prefers PEP's brands across several categories.In the end, PepsiCo offers a huge stable of winning brands, cash flows and a growing dividend. It's exactly what conservative investors would want in a consumer staples stock. Church & Dwight (CHD)Source: ThamKC / Shutterstock.com Dividend Yield: 1.2%The power of consumer staples stocks lies within their ability to survive recessionary environments. The key is that daily activities still need to happen. Teeth need to be brushed and our clothes need to be washed. But what we use to do those processes can and does change during poor economic health. And that's where Church & Dwight (NYSE:CHD) can shine.While Church & Dwight's corporate name might not be as well-known as other consumer staples giants like Procter & Gamble (NYSE:PG) and Johnson & Johnson (NYSE:JNJ), its products certainly are. They include Arm & Hammer baking soda, OxiClean stain-fighting solutions and Trojan condoms. The win for CHD is that many of its brands don't fall under the premium pricing umbrella. A large bottle of Tide goes for around $17 in my area. The similar-sized Arm & Hammer bottle is only about $10. Last recession, CHD benefited as many consumers migrated down to its lower-priced products. The best part is many stayed there after their fortunes changed during the recovery.Organic sales growth at the firm has managed to grow at a 3.6% annual rate over the last decade. And thanks to strong cost controls and buybacks, earnings have grown by about 8% per year in that time.Meanwhile, the firm continues to find other ways to grow. CHD has smartly used mergers and acquisitions to grow its portfolio and it's become a huge seller on Amazon (NASDAQ:AMZN), partnering with the retailer to boost e-commerce and subscription sales.In the end, Church & Dwight isn't as big as many of its rivals, but it does offer a chance to gain growth and stability among the consumer staples stocks. Costco (COST)Source: Helen89 / Shutterstock.com Dividend Yield: 0.9%There's no secret that AMZN and e-commerce are disrupting the model for many retailers. But for those stores that have cult-like followings and offer something different, the times continue to boom. This includes warehouse club Costco (NASDAQ:COST).Shopping at COST is quite frankly an event. Sure, there's the bulk offerings, but there's also plenty of one-time or limited deals, specialty products and its signature Kirkland brand. You literally can get everything from diamond rings to snow tires. And consumers continue to pay some big bucks to be able to access all those deals. COST memberships clock in at about 98.5 million worldwide and even better is that the current membership renewal rate is about 90%.This creates a stable and predictable base of cash flows for COST. We're talking $3.4 billion in fee revenue alone. That's also perfect for conservative investors.Thanks to rising sales and those hefty fees, COST has become a dividend machine. Since 2004, Costco has raised its payout by 540%. Even better is that COST has a history of paying special dividends to its investors. With cash on its balance sheet growing and management hinting at the cash in their "back pocket," another payout could be on the way.For conservative investors, COST's level of cash generation can't be beaten in the consumer staples sector.At the time of writing, Aaron Levitt was long AMZN stock. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for Investors Fearing Another Q4 Downturn * 5 Penny Stocks to Buy If You Can Risk It * 7 Safe Stocks to Buy and Hold Through 2020 The post 3 Consumer Staples Stocks to Buy for Conservative Investors appeared first on InvestorPlace.
State Street Global Advisors' sector ETF for stocks that sell consumer staples (think toothpaste, toilet paper, fast food, and cheap clothes) tracks a collection of consumer staples. If consumers are able to stretch their dollar further, then the retail sector may see the benefit of consumers who feel a little more flush. Companies such as Dollar General Corporation (DG) Walmart Inc. (WMT), Dollar Tree, Inc. (DLTR), Casey's General Stores, Inc. (CASY), Target Corporation (TGT), and Amazon.com, Inc. (AMZN) have all done well this year.
A slew of mega-cap companies are gearing up to delivery quarterly results Tuesday including Procter & Gamble, McDonald's, Chipotle and Snap.
Although Fed Chair Jerome Powell outlined an optimistic outlook about the economy, the Central Bank leader signaled that low inflation could mean higher interest rates in the near future. Yahoo Finance’s Akiko Fujita and U.S. Bank Wealth Management’s Lisa Erickson discuss on The Ticker.