Find The Best Stocks With Perfect Trade Setups In Minutes A Day

Stop wasting time looking for the right stocks.  Free training on how to find perfect stock trades that can move 300-1,500%.  Learn the # 1 key to successful stock investing and how to find success even If the market is crashing, rebounding… or just going sideways.

Do Not Delay - Click Here Now

 

Consumer Staples Stocks Are Bouncing Back – Here Are 6 Traders Are Watching Now

There’s one corner of the sector investors should consider now & these 6 stocks fit the bill.

Consumer stocks are on the rebound.


If you're a stock investor who wants to retire early, check out this free training and learn how!  Click Here


The XLP S&P 500 Consumer Staples Sector SPDR is up nearly 1% this week, and around 7% over the last month. The ETF tracks the consumer staples sector as a whole, and despite the recent gains, is just below the flatline year-to-date as the fractured group faces uncertainty around what the coronavirus crisis will bring next.

Still, there are areas in the sector where investors can seek gains.

“You can look at food names in two groups,” said Federated Hermes portfolio manager, equity strategist, and vice president Steve Chiavarone. “There’s the stay-at-home-exposed names, and then there’s the restaurant-exposed names.”

Piper Sandler analyst Michael Lavery said in a recent note that the stay-at-home-exposed trend, including packaged-goods, is here to stay. According to Lavery, results of the firm’s latest coronavirus-related survey “suggests a sustainable lift for food-at-home sales of perhaps 15% or more,” with two-thirds of respondents saying they are likely to eat more at home than they did before, even post-COVID-19.

Seaport Global Securities initiated coverage this week on a handful of stocks that fit the “stay-at-home-exposed” bill, giving Buy ratings to Archer-Daniels-Midland (NYSE: ADM), Kellogg (NYSE: K), Mondelez (NASDAQ: MDLZ), and Simply Good Foods (NASDAQ: SMPL).

Given that there have been surges in coronavirus cases in hotspots throughout the country, Chiavarone said that’s bad news “for the restaurant names [and] very good for the stay-at-home names.”

“However, when and if we do get progress on a vaccine and we start to see a reacceleration of reopening again, you probably have a lot of value in the restaurant names,” Chiavarone added. “So from our perspective, we’re leaning towards the stay-at-home portion, but we’ve got a real watchful eye on the restaurant-exposed names here.”

Ascen Wealth Partners managing director Todd Gordon says the consumer staples sector is “generally mature,” full of slow growth, and “very fully valued.”

However, “because we’re seeing a move down in interest rates, we’re starting to see staples have a pretty good degree of correlation towards rates,” Gordon said. “In terms of valuations, according to S&P, staples are trading about 20 times next year’s earnings, estimated to grow at about 5%. If you compare that to technology, which is at 24 times next year’s earnings, they’re expected to grow 14%. So, staples are fairly fully valued.”

Gordon added, though, that there’s one company that he likes in the space: Church & Dwight (NYSE: CHD). 

The company is largely focused on health, sanitation and personal care with brands including pantry staples like Arm & Hammer, OxiClean, and Orajel.

“We like its long-term prospects,” Gordon said. “It’s one of the better kind of top-line growers. They have a lot of exposure to cleaning supplies. They’ve been gaining market share.”

Bonus: Gordon says “the chart looks good.”

Source: TradingView.

Church & Dwight shares broke out of a falling channel and have since broken up past the previous high just above $80.

“We broke through 80 as resistance, and what was resistance becomes support,” Gordon said. “So, we hold CHD, but generally underweight staples.”

Gordon added though that the work-at-home and stay-at-home trend is here to stay and has brought about a “new norm” for dividend plays.

“We’re starting to see more technology stocks with rock-solid balance sheets, fortress balance sheets, yet dividends are not going anywhere, act more [like] staples than staples are acting,” Gordon said, pointing at Apple (NASDAQ: AAPL) as an example. “There’s just unbelievable amounts of examples of tech that’s paying a solid dividend and that’s acting as sort of a defensive sector in here.”

By the way, if you liked this article, you'll LOVE this Meaty free training I just published on the top 3 questions and challenges every investor faces AND how to overcome them. It's titled "10k into $2.4 Million in 18 months" and you can grab it for free here

There are risks inherent in all investments, which may make such investments unsuitable for certain persons. These include, for example, economic, political, currency exchange, rate fluctuations, and limited availability of information on international securities. You may lose all of your money trading and investing. Do NOT enter any trade without fully understanding the worst-case scenarios of that trade. And do NOT trade with money you cannot afford to lose. Past performance of an investment is not necessarily indicative of its future results. No assurance can be given that any implied recommendation will be profitable or will not be subject to losses. Information provided by the Company is not investment advice. The Company is not a registered investment adviser, stock broker, or brokerage. You agree that the Company does not represent, warrant, or take responsibility that any account will or is likely to achieve profit or losses similar to those shown. Examples published by the Company are selected for illustrative purposes only. They are not typical and do not represent the typical results of all stocks within the Companys software or its individual scans and searches. No independent party has audited any hypothetical performance contained at this Web site, nor has any independent party undertaken to confirm that they reflect the trading method under the assumptions or conditions specified.

FREE TRADING WEBINAR - TRADERSPRO PRESENTS: Starting With Only $10,000 Retire With $2.4 Million? Click Here Now

Join Us Now
X