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.
Quarter-End Insights
Mentioned: Tesco PLC (TSCO)
, Wuliangye Yibin Co Ltd (000858)
, Marico Ltd (MARICO)
, ITC Ltd (ITC)
, Philip Morris International Inc (PM)
, Dollar General Corp (DG)
, Coca-Cola Co (KO)
, Dollar Tree Inc (DLTR)
, Whole Foods Market Inc (WFM)
, Procter & Gamble Co (PG)
- 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.
Already a member? Sign in.
Erin Lash has a position in the following securities mentioned above: PM. Find out about Morningstar’s editorial policies.