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Forget Procter & Gamble, Buy these Consumer Stocks Instead - Stocks in the News

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The outlook for consumer goods in general is relatively sluggish for 2015, due to slowing sales growth. Many of the big players in the industry hold Zacks Ranks of #4 (Sell) and #5 (Strong Sell). Take Procter & Gamble, for example. The stock is a Zacks Rank #4 (Sell). Since New Year's Eve, PG has seen its share value fall 7%.

There have been 14 negative estimate revisions by analysts for this quarter in the last 60 days. There have been 0 positive revisions by analysts in the last 2 months. Our consensus estimate has been revised lower consecutively over the past 90, 60, 30, and 7 days. 3 months ago, our consensus called for EPS of $1.08 for this quarter. Since then though, our EPS consensus has been revised lower, currently calling for EPS of $0.94.

Within the consumer goods sector are some players that are ready to scorch the competition. We have 3 picks that are buy ranked stocks to recommend. Unlike PG, they've got mixed criteria based on earnings, valuation, and growth, which position them well to beat our consensus when they report their earnings for the quarter.

Tyson Foods Inc- TSN

Tyson Foods is the largest producer, processor, and marketer of chicken products in the world. The company is a Zacks Rank #1 (Strong Buy). The stock is not as volatile as the market since it has a beta of 0.58. The company trades at a low PE of 11.61. It's worth noting that the company had a debt/equity of 0.76 for the most recent quarter.

The EPS for this quarter a year ago was $0.60. The current estimate for this quarter is $0.75. This estimate is higher than our estimate of $0.74 a week ago. Tyson Foods has beaten our EPS estimate in the last two quarters, and by an average of 9.97%. This indicates that Tyson has been picking up momentum in recent history, and is a considerable candidate to beat our consensus estimate when it reports its earnings on 5/4/15.

Monster Beverage Corporation- MNST

Monster markets and distributes its energy drinks and other beverages around the world. The California based company is a massive member of the soft drink industry, with a 23.5 billion dollar market cap. MNST is a Zacks Rank #1 (Strong Buy). The company has a nice PEG of 1.94. Monster has an ROE of 36.74%, and a net profit margin of 19.6%, crushing the performance of the rest of the beverage industry as a whole.

In the past 60 days, there have been 12 positive estimate revisions by analysts for the current quarter. In that same time frame, there have been 0 negative revisions. 30 days ago, our EPS consensus estimated earnings of $0.65 per share. The current consensus we have for MNST this quarter calls for earnings of $0.68 per share. The company has beaten our earnings consensus in each of the last four quarters, and by an average of 10.95%, making Monster a considerable candidate to beat on our consensus when it reports its earnings on 5/14/15.

Reynolds American Inc- RAI

Reynolds American owns several tobacco subsidiaries and makes about 1 of every 3 cigarettes sold in the US. The company sells top brands like Camel, Winston, KOOL, Salem, and Doral. The company is a Zacks Rank #2 (Buy). The buy ranking paired along with a positive ESP of 2.53% makes RAI a likely candidate to beat on our consensus estimate when it posts its earnings on 4/22/15. It's worth noting that the company doles out a 3.85% dividend.

30 days ago, our consensus estimate for the quarter called for EPS of $0.78. Since then, our consensus has moved up, and now expects earnings of $0.79 for the current quarter. The company has beaten on our earnings consensus in each of the last 3 quarters. Reynolds has a trailing twelve month ROE of 37.75%. It also had a debt/equity for the most recent quarter of 1.02.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

PROCTER & GAMBL (PG): Free Stock Analysis Report

TYSON FOODS A (TSN): Free Stock Analysis Report

MONSTER BEVERAG (MNST): Free Stock Analysis Report

REYNOLDS AMER (RAI): Free Stock Analysis Report

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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.


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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