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Consumer Sector Update for 02/16/2018: LOW,KO,CPB,WEN

Top Consumer Stocks

WMT +1.53%

MCD -1.41%

DIS +1.60%

CVS +2.38%

KO +0.86%

Consumer stocks turned mixed in late Friday trade, with shares of consumer staples companies in the S&P 500 adding almost 0.7% this afternoon although shares of consumer discretionary firms in the S&P 500 were falling about 0.2%, reversing a prior advance.

Among consumer stocks moving on news:

- Lowe's Companies ( LOW ) turned narrowly lower in late Friday trading, slipping from a more than 1% rise to a session high of $97.67 a share earlier in today's session that followed analysts at Oppenheimer raising their price target for home-improvement retailer by $15 to $115 a share while also reiterating their Outperform rating for the company's stock. According to a new research note, the Oppenheimer analysts said a recent dip for Lowe's stock price created a "tactical buying opportunity," later explaining the stock's movement against the S&P 500 "hasn't been as strong as rival Home Depot's ( HD ) relative trend, meaning we prefer HD if selecting between the two home improvement retailers." Lowes is scheduled to report its Q4 financial results on day, Feb. 20. Analysts, on average, are expecting the company to earn $0.87 per share during the November-to-January reporting period on around $15.33 billion in quarterly sales.

In other sector news:

+ Coca Cola ( KO ) was moderately higher Friday afternoon, climbing nearly 2% to a session high of $45.64 a share, after the soft-drink bottler topped analyst expectations with its Q4 top and bottom lines despite headwinds from refranchising initiatives contributing to a double-digit revenue retreat during the October-to-December period. Excluding one-time items, the company earned $0.39 per share, up from $0.37 during the same quarter last year and beating the Capital IQ consensus by $0.01 per share. It also generated $7.51 billion in revenue during the three months ended Dec. 31, falling 20% from $9.41 billion during the year-ago period but still exceeding the $7.36 billion Street view. Coke said the ongoing refranchising of its bottling territories created a 26% headwind during the quarter. For FY18, the company is projecting 4% growth in organic revenue and a rise between 8% to 10% in its adjusted per-share earnings compared with the prior-year.

+ Wendy's Company ( WEN ) advanced as much as 6% higher, reaching an intra-day high of $16.66 a share, after the restaurant chain Friday announced a 21% increase in its quarterly cash dividend as well as authorizing a new stock buyback program. The company said its upcoming dividend payment will rise to $0.085 per share from its current $0.07 per share, payable March 15 to shareholders of record on March 1. It also is beginning a new share repurchase program to reacquire and retire up to $175 million of its common stock through March 3, 2019.

- Campbell Soup Company ( CPB ) fell as much as 4.5% on Friday, bottoming out at $45.47 a share, after the canned foods company issued a FY18 sales outlook lagging analyst estimates, upstaging better-than-expected fiscal Q2 financial results. The company is expecting revenue during the 12 months ending in late July to rise or fall within 1% of its FY17 total. Analysts, on average, are expecting 1.5% year-over-year growth to around $7.87 billion this year. It also is projecting non-GAAP net income in a range of $3.10 to $3.17 per share, spanning the $3.15 per share consensus. For the three months ended Jan. 28, the company reported adjusted Q2 earnings of $1.00 per share, eclipsing the $0.81 per share Street view. Revenue nudged 0.5% higher from the year-ago period to $2.18 billion, topping the Capital IQ consensus by around $20 million.

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

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

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