Inflation and supply chain shortages put pressure on the wide-moat company.
The market underappreciates consumer packaged goods manufacturers.
Despite supply chain constraints, rising labor costs and new variants, we still see value in the consumer cyclical space.
We think this performance is a testament to the strategic course it has been trekking over a multiyear horizon--anchored in increasing investments in its capabilities and brands.
The beverage company acquired BodyArmor for $5.6 billion.
This wide-moat company served up a solid start to the fiscal year.
Profits cooled in the period, as supply chain disruptions and inflationary headwinds took a toll.
Heavy competition will persist, so strong brands with pricing power are best positioned.
We expect consumers to begin spending more on experiences, such as travel.
Our $83 fair value estimate is unchanged.
The company did so even against pronounced inflationary headwinds.
Tobacco still looks undervalued.
We see pockets of opportunity in powersports companies that have benefited from people's desire for outdoor activities while social distancing.
P&G intends to raise prices across its U.S. baby, feminine, and adult incontinence segments.
We're keeping an eye on online grocery shopping.
Consumer cyclical stocks are overvalued.
We intend to hold the line on our long-term expectations for 4% annual sales growth and operating margins in the mid-20s for the wide-moat company.
And one stock we like.
Aside from auto and restaurant subindustries, the sector looks fully valued.
Alcohol and tobacco still present the biggest opportunities.
We intend to edge up our $111 fair value estimate, but we don’t believe investors should rush to stock up on this wide-moat name.
In the somewhat frothy consumer defensive sector, alcoholic beverage producers look cheap.
We expect car and local travel to rebound before international and air travel.
Alcohol and tobacco stocks are trading at the greatest discounts to our fair value estimates.
We see little in the results to warrant a material change to our $48 fair value estimate for this no-moat company.
We think the company has the wherewithal to withstand impending pressures.
Here are two stocks that catch our eye.
Consumers are slowly starting to travel and eat at restaurants again.
Tobacco and alcohol look attractive.
We are maintaining our fair value estimate for this no-moat firm.
We don't expect to alter our fair value estimate or long-term outlook for the wide-moat firm, but we think investors should await a more attractive risk/return opportunity.
This no-moat firm is winning with consumers amid COVID-19, but we don’t think this growth will prove sustainable.
Constellation and Hostess both look promising.
Eighty percent of the sector is undervalued, trading at 4 or 5 stars.
Tobacco and beverage subsectors look particularly attractive.
The stock is trading well below what we think it's worth.
But the market continues to punish this wide-moat company, providing an attractive entry point for investors.
We are maintaining our $106 FVE.
We believe investors should await a more favorable entry point before buying shares of this wide-moat firm.
As the faltering firm works toward a turnaround, patient investors should consider its undervalued shares.
Online booking of experiences should continue to increase.
Tobacco and alcohol firms are trading below our fair value estimates.
We suggest investors employ patience with the no-moat name.
Wide-moat Procter & Gamble chalked up another quarter of strong sales and profit gains.
Wide-moat Kellogg looks attractive for investors today.
Shifting consumer health trends are having a big impact on the sector.
We still believe shares of the no-moat firm offer a significant margin of safety.
We view shares of the wide-moat firm as attractive.
We like what we're seeing from the wide-moat firm but think it's overvalued.
Both Campbell Soup and Kellogg boast wide moats and appealing yields.