Consumers Confidence Waning
Consumer confidence, as measured by the Bloomberg Consumer Comfort
Index, fell for the first time in five weeks as Americans grew more
concerned about the economy. And last week, it was reported that
U.S. consumer sentiment worsened more than expected in June. High
unemployment, rising food prices and falling home values are all
weighing consumers' minds, and could cause them to rein in spending
even more in the future.
This is bad news for consumer stocks, especially the more
discretionary ones, such as travel and hotel companies. There are
two of those on our list of stocks to sell, as well as two
electronics companies that manufacture a lot of products that we
may want, but don't necessarily need. And finally, two of the
companies on our list of stocks to sell are actually food product
companies, which just goes to show you that not all consumer
staples stocks are created equal.
Here are six consumer stocks to sell:
Stock to Sell #1 - Sony Corp. (SNE)
) is famous for its development, design, manufacturing and sale of
various kinds of electronic equipment, instruments and devices for
consumer, professional and industrial markets, as well as its
popular game consoles and software. While its products are marketed
around the world, production mainly takes place in Japan and other
parts of Asia, and in Europe.
Year-to-date, SNE stock has watched its value drop 31%, compared
to gains by the broader markets. Despite gains in the past two
days, Sony has dropped 6% in the past 30 days. In its most recent
quarterly income statement, SNE posted quarterly revenue growth of
Stock to Sell #2 - Panasonic Corp. (PC)
) is known for the manufacturing and sale of electronic and
electric products for a range of consumer, business and industrial
uses, as well as a variety of components.
Since the start of 2011, PC stock has dropped 20%, compared to a
gain of 2% by the Dow Jones Industrial Average. More recently,
Panasonic is down 6% in the last three months as well. Its last
income statement also revealed year-over-year quarterly revenue
growth of -7%. Currently, PC is not far from its 52-week low of
Stock to Sell #3 - Carnival Corp. (CCL)
Cruise ship vacation company
) owns numerous cruise line brands that travel to various vacation
destinations in North America, Europe, Australia and Asia.
If you're on board CCL stock, it may be time to abandon ship.
Year-to-date, CCL has dropped 19%, compared to gains by the broader
markets. Earnings wise, experts are projecting Carnival to take a
9-cent dip in EPS this quarter, compared to the EPS it posted last
year. Quarterly earnings growth of -13%, year-over-year, only
strengthen the desire to flee this stock.
Stock to Sell #4 - Marriott International (MAR)
Next on our list of stocks to sell is
). The company develops, operates and franchises hotels and
corporate housing properties, as well as timeshares, fractional
ownerships and residential properties under separate brand
Marriott may offer a luxurious stay for its guests, but its
stock performance has been making shareholders uncomfortable.
Year-to-date, MAR stock is down 1p%. More recently, MAR has lost 8%
in the last 30 days.
Stock to Sell #5 - Campbell Soup Co. (CPB)
More than just an iconic soup maker,
Campbell Soup Co.
) manufactures and markets numerous convenience food products
ranging from pasta sauces to juices to bakery and frozen products.
Their chicken noodle soup may be a good cure for the common cold,
but its not doing anything for Campbell's sickly stock
Over the past 12 months, CPB has lost 8%. More recently, CPB has
dropped 5% in the last 30 days, as well. Earnings wise, analysts
are projecting no growth in EPS this quarter, compared to this
quarter last year.
Stock to Sell #6 - ConAgra Foods (CAG)
) operates under two business segments: consumer foods and
commercial foods. In 2010, this food conglomerate acquired the
assets of American Pie, LLC, as well as Elan Nutrition, Inc.
Despite a varied line of products, CAG stock has not thrilled
potential buyers. In the last month, CAG has dropped nearly 1%, and
despite strong gains this past May, the company is up just 3% in
the last 12 months. Earnings wise, CAG reported quarterly earnings
growth of -6%, year-over-year.