6 Brand Name Consumer Stocks to Trash

By
A A A

Consumers Confidence Waning

Garbage Bag 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)

Sony Corp. (NYSE: SNE) Sony Corp. (NYSE: 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 -8%.

Stock to Sell #2 - Panasonic Corp. (PC)

Panasonic Corp. (NYSE: PC) Panasonic Corp . (NYSE: 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 $10.76.

Stock to Sell #3 - Carnival Corp. (CCL)

Carnival Corp. (NYSE: CCL) Cruise ship vacation company Carnival Corp. (NYSE: CCL ) 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)

 Marriott International (NYSE: MAR) Next on our list of stocks to sell is Marriott International (NYSE: MAR ). The company develops, operates and franchises hotels and corporate housing properties, as well as timeshares, fractional ownerships and residential properties under separate brand names.

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)

 Campbell Soup Co. (NYSE: CPB) More than just an iconic soup maker, Campbell Soup Co. (NYSE: CPB ) 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 performance.

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)

ConAgra Foods (NYSE: CAG) Food company ConAgra Foods (NYSE: 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.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: CAG , CCL , CPB , PC

Louis Navellier

Louis Navellier

More from Louis Navellier:

Related Videos

Stocks

Referenced

75%
67%
100%

Most Active by Volume

85,467,945
  • $16.74 ▼ 0.30%
83,530,302
  • $12.49 ▲ 85.31%
68,697,805
  • $42.55 ▼ 0.77%
58,516,965
  • $101.63 ▼ 0.03%
49,234,469
  • $74.58 ▼ 3.74%
39,038,134
  • $8.56 ▲ 2.27%
37,813,410
  • $49.38 ▼ 5.24%
37,004,144
  • $46.24 ▼ 0.97%
As of 9/15/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com