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Quarter-End Insights

Consumer Defensive: Brand Investments Are Key

Tobacco stocks present an underappreciated opportunity.

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The Morningstar Global Consumer Defensive Index has recovered in line with the global equity market, up 10% in 2019 versus a nearly 11% increase for the broader market, despite concerns about heightened competition from large branded players, niche entrants, and private-label alternatives. The 5.5% return on consumer defensive shares over the last year compares favorably to the 1.4% increase in the overall market.

Sector performance has lagged the market - source: Morningstar Analysts

Erin Lash does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.