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Quarter-End Insights

At Home and Abroad, Consumer Defensive Firms With an Edge Are Poised to Win

Consumer defensive firms look to offset muted growth by beefing up their competitive positioning, and select opportunities for investors remain.

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  • The consumer defensive sector trades at a premium, but pockets of value exist, particularly among firms with a vast competitive clout.
  • Multiple factors should be considered when screening for companies best-positioned to capitalize on the growth potential of emerging-market consumers, each of which ties directly into the sources of its economic moat.
  • Shifting bargaining power trends between consumer packaged goods firms and retailers persist, given further retail consolidation.

Erin Lash has a position in the following securities mentioned above: PM. Find out about Morningstar’s editorial policies.